Personal Tax Rates
Federal Income Tax Rates
Income tax Brackets and Rates
2004 2003
Range of Taxable Income Tax Rate Range of Taxable Income Tax Rate
$0 to $35,000 16% $0 to $32,183 16%
$35,000 to $70,000 22% $32,183 to $64,368 22%
$70,000 to $113,804 26% $64,368 to $104,648 26%
Over $113,804 29% Over $104,648 29%
Personal Tax Credits
Personal tax credits are calculated at 17% of the following prescribed amounts. This list comprises most, but not all, personal tax credit amounts.
Prescribed Amounts 2004 2003
Basic personal $8,012 $7,756
Spousal or equivalent-to-spouse - reduced if spouse's income exceeds $614 in 2004 and $659 in 2003 $6,803 $6,586
Age - reduced by 15% of net income in excess of $26,284 in 2004 and $28,193 in 2003 $3,531 $3,787
Pension income $1,000 $1,000
Disability $4,293 $6,279
Medical expenses Amount in excess of lesser of $1,637 or 3%
of net income
Amount in excess of lesser of $1,755 or 3%
of net income
Charitable donations 16% on first $200 and 29% thereafter 16% on first $200 and 29% thereafter
Canada Pension Plan premiums Amount paid to maximum of $1,831.50 Amount paid to maximum of $1,801.80
Employment Insurance Amount paid to maximum of $722.20 Amount paid to maximum of $819.00
Provincial Income Tax Rates
Provinces now have their own tax brackets and personal tax credits. Some brackets mirror the Federal brackets, but most do not. Calculating effective / marginal tax rates is now not quite the simple process it once was.
Income tax rates for selected provinces are as follows
2004   2003
Range of Taxable Income Tax Rate   Range of Taxable Income Tax Rate
British Columbia
$0 to $32,476 6.05%   $0 to $31,653 6.05%
$32,476 to $64,954 9.15%   $31,653 to $63,308 9.15%
$64,954 to $74,575 11.7%   $63,308 to $72,685 11.7%
$74,575 to $90,555 13.7%   $72,685 to $88,260 13.7%
Over $90,555 14.7%   Over $88,260 14.7%
Alberta
All taxable income 10%   All taxable income 10%
Manitoba
$0 to $30,544 10.9%   $0 to $30,544 10.9%
$30,544 to $65,000 14.0%   $30,544 to $65,000 14.0%
Over $65,000 17.4%   Over $65,000 17.4%
Ontario
$0 to $33,375 6.05%   $0 to $32,435 6.05%
$33,375 to $66,752 9.15%   $32,435 to $64,871 9.15%
Over $66,752 11.16%   Over $64,871 11.16%
Ontario surtaxes
20% of tax in excess of $3,856   20% of tax in excess of $3,747
AND 36% of tax in excess of $4,864   AND 36% of tax in excess of $4,727
Provincial Personal Tax Credits
Like the federal system, the provincial tax credits are calculated at a given rate applied to the prescribed amounts. Following is a partial list of credits for selected provinces.
British Columbia - 6.05%
Prescribed Amounts 2004 2003
Basic personal $8,523 $7,756
Spousal or equivalent-to-spouse - reduced if spouse's income exceeds $614 in 2004 and $659 in 2003 $7,298 $6,586
Age - reduced by 15% of net income in excess of $28,450 in 2004 and $28,193 in 2003 $3,822 $3,787
Pension income $1,000 $1,000
Disability $6,392 $6,279
Medical expenses Amount in excess of lesser of $1,772 or 3% of net income Amount in excess of lesser of $1,755 or 3% of net income
Charitable donations 6.05% on first $200 and 14.7% thereafter 17% on first $200 and 29% thereafter
Canada Pension Plan premiums Amount paid to maximum of $1,831.50 Amount paid to maximum of $1,801.80
Employment Insurance Amount paid to maximum of $722.20 Amount paid to maximum of $819.00
Marginal Tax Rates