Personal Income Tax -> Tax Rates -> 2015 & 2016 Tax Rates -> Canada Federal 2015 & 2016 Income Tax Brackets and Tax Rates
Canada - Federal 2015 and 2016 Tax Brackets and Marginal Tax Rates
The Federal tax rates for 2016 are as per Bill C-2 tabled in December 2015. The Federal tax brackets and personal amount were increased for 2016 by an indexation factor of 1.013. The indexation factors and, tax brackets and tax rates have been confirmed to Canada Revenue Agency information.
With the reduction of the tax rate from 22% to 20.5% in 2016, increased taxes will not be incurred in 2016 over 2015 until total taxable income (depending on type of income) reaches about $225,000.
Please read the article Understanding the Tables of Personal Income Tax Rates.
Federal Personal Income Tax Brackets and Tax Rates |
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| 2016 Taxable Income | 2016 Marginal Tax Rates | 2015 Taxable Income | 2015 Marginal Tax Rates | ||||||
| Other Income |
Capital Gains |
Canadian Dividends | Other Income |
Capital Gains |
Canadian Dividends | ||||
| Eligible | Non-Eligible | Eligible | Non-Eligible | ||||||
| first $45,282 | 15.0% | 7.50% | -0.03% | 5.24% | first $44,701 | 15% | 7.5% | -0.03% | 4.70% |
| over $45,282 up to $90,563 | 20.5% | 10.25% | 7.56% | 11.67% | over $44,701 up to $89,401 | 22% | 11.0% | 9.63% | 12.96% |
| over $90,563 up to $140,388 | 26.0% | 13.00% | 15.15% | 18.11% | over $89,401 up to $138,586 | 26% | 13.0% | 15.15% | 17.68% |
| over $140,388 up to $200,000 | 29.0% | 14.50% | 19.29% | 21.62% | over $138,586 | 29% | 14.5% | 19.29% | 21.22% |
| over $200,000 | 33.0% | 16.50% | 24.81% | 26.30% | |||||
| Marginal tax rate for dividends is a % of actual
dividends received (not grossed-up amount). Marginal tax rate for capital gains is a % of total capital gains (not taxable capital gains). Gross-up rate for eligible dividends is 38%, and for non-eligible dividends is 17% in 2016, 18% in 2015. For more information see dividend tax credits. |
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Federal Basic Personal Amount |
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| 2016 Personal Amount | 2016 Tax Rate | 2015 Personal Amount | 2015 Tax Rate | ||||||
| $11,474 | 15% | $11,327 | 15% | ||||||
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Revised: October 26, 2023