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2004 and 2005 Personal Tax Rates

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Tax Rates -> Personal Income Tax Rates for 2004 and 2005

Personal Income Tax Rates for Canada and Provinces/Territories for 2004 and 2005

See also Current Marginal Tax Rates.

Note:  the 2005 rates on this page are not the final rates for 2005.  See the 2005/2006 rates for the final 2005 rates.

1.  Canadian income tax rates - federal personal income tax rates

2.  Canadian income tax rates - combined federal + provincial/territorial tax rates

      -Newfoundland & Labrador (NL)

      -Prince Edward Island (PE)

      -Nova Scotia (NS)

      -New Brunswick (NB)

      -Quebec (QC)

      -Ontario (ON)  plus Ontario Health Premium rates

      -Manitoba (MB)

      -Saskatchewan (SK)

      -Alberta (AB) 
            - $400 Tax-free Resource Rebate

      -British Columbia (BC)
            - BC Medical Services Plan rates

      -Yukon (YT)

      -Northwest Territories (NT)

      -Nunavut (NU)

1.    Canadian income tax rates - federal personal income tax rates:

Canadian federal income tax is calculated based on taxable income, then non-refundable tax credits are deducted to determine the net amount payable.  For 2005, every taxpayer can earn $8,148 (the basic personal amount) of taxable income before paying any federal tax.

The basic personal tax credit is calculated by multiplying the lowest tax rate by the basic personal amount.

The Department of Finance announced in November 2005 that the lowest federal tax rate would be reduced from 16% to 15%, and certain tax credits would be revised to compensate for the lower tax rates.

The tables on this page have not been revised for the rate reduction.  See the revised 2005 tax rates on the Tax Rates 2005/2006 page.

The basic personal amount for each province and territory is listed below the tables of tax rates.  This is the amount that can be earned before any provincial/territorial tax is paid.

Federal Personal Income Tax Rates
(before Nov 2005 revision to 2005 rate)
2005 Taxable Income 2004 Taxable Income   Marginal Tax Rate
Other
Income
Capital
Gains
Canadian
Dividends
first $35,595 first $35,000 16% 8.0% 3.33%
over $35,595 up to $71,190 over $35,000 up to $70,000 22% 11.0% 10.83%
over $71,190 up to $115,739 over $70,000 up to $113,804 26% 13.0% 15.83%
over $115,739 over $113,804 29% 14.5% 19.58%
Federal Basic Personal Amount
(before Nov 2005 revision to 2005 rate)
2005 2004 Tax Rate
$8,148 $8,012 16%

The above federal rates are prior to the November 2005 announcement which reduced the 2005 lowest tax rate from 16% to 15%, and increased the 2005 basic personal amount to $8,648 from $8,148.  See the Tax Rates 2005/2006 page for the revised 2005 tax rates and non-refundable tax credits.

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2.    Combined Federal + Provincial Personal Income Tax Rates

Canadian federal and provincial/territorial income taxes are calculated separately, although on the same tax return, except for Quebec.  The rates are combined here so that taxpayers can see the total tax rate being paid, including any provincial surtaxes.

The combined tax rates in these tables are marginal tax rates, including any provincial surtaxes.  In the tables, "other income" includes income from employment, self-employment, interest from Canadian or foreign sources, foreign dividend income, etc.  

After the income tax amounts are calculated, non-refundable tax credits are deducted from the tax payable.  Non-refundable tax credits include the basic personal amount, which is available to every taxpayer.  See the tables of non-refundable tax credits for more information, including federal and provincial/territorial credits. 

The basic personal amount for each province and territory is listed below the tables of tax rates.  This is the amount that can be earned before any provincial/territorial tax is paid.  

Newfoundland & Labrador (NL)
combined federal & provincial tax rates
2005 Taxable Income 2004 Taxable Income   Marginal Tax Rate
(before Nov 2005 revision to 2005 federal rate)
Other
Income
Capital
Gains
Canadian
Dividends
first $29,590 first $29,590 26.57% 13.29% 10.30%
over $29,590 up to $35,595 over $29,590 up to $35,000 32.16% 16.08% 17.28%
over $35,595 up to $58,597 over $35,000 up to $58,597 38.16% 19.08% 24.78%
over $58,597 up to $59,180 over $58,597 up to $59,180 39.61% 19.81% 26.04%
over $59,180 up to $71,190 over $59,180 up to $70,000 41.64% 20.82% 28.57%
over $71,190 up to $115,739 over $70,000 up to $113,804 45.64% 22.82% 33.57%
over $115,739 over $113,804 48.64% 24.32% 37.32%
NL Basic Personal Amount
2005 2004 Tax Rate
$7,410 $7,410 10.57%

NL has a surtax of 9% which is included in all of the above rates.  The surtax applies when the NL income tax (after deducting non-refundable tax credits) exceeds $7,032.  If provincial income tax payable after tax credits was $10,000, the surtax would be $267, or ($10,000 - $7,032) x 9%.  For a single person with a tax credit for only the basic personal amount, the provincial income tax will reach $7,032 at a taxable income of $58,597 in 2005 or 2004.

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Prince Edward Island (PE)
combined federal & provincial tax rates
2005 Taxable Income 2004 Taxable Income   Marginal Tax Rate
(before Nov 2005 revision to 2005 federal rate)
Other
Income
Capital
Gains
Canadian
Dividends
first $30,754 first $30,754 25.80% 12.90% 5.96%
over $30,754 up to $35,595 over $30,754 up to $35,000 29.80% 14.90% 10.96%
over $35,595 up to $51,858 over $35,000 up to $51,858 35.80% 17.90% 18.46%
over $51,858 up to $61,509 over $51,858 up to $61,509 37.18% 18.59% 19.22%
over $61,509 up to $71,190 over $61,509 up to $70,000 40.37% 20.19% 23.21%
over $71,190 up to $115,739 over $70,000 up to $113,804 44.37% 22.19% 28.21%
over $115,739 over $113,804 47.37% 23.69% 31.96%
PE Basic Personal Amount
2005 2004 Tax Rate
$7,412 $7,412 9.8%

PE has a surtax of 10% which is included in all the above rates.  The surtax applies when the PE income tax (after deducting non-refundable tax credits) exceeds $5,200.  If provincial income tax after tax credits was $10,000, the surtax would be $480, or ($10,000 - 5,200) x 10%.  For a single person with a tax credit for only the basic personal amount, the provincial income tax will reach $5,200 at a taxable income of $51,858 in 2005 or 2004.

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Nova Scotia (NS)
combined federal & provincial tax rates
2005 Taxable Income 2004 Taxable Income   Marginal Tax Rate
(before Nov 2005 revision to 2005 federal rate)
Other
Income
Capital
Gains
Canadian
Dividends
first $29,590 first $29,590 24.79% 12.40% 4.70%
over $29,590 up to $35,595 over $29,590 up to $35,000 30.95% 15.48% 12.40%
over $35,595 up to $59,180 over $35,000 up to $59,180 36.95% 18.48% 19.90%
over $59,180 up to $71,190 over $59,180 up to $70,000 38.67% 19.34% 22.05%
over $71,190 up to $80,840 over $70,000 up to $80,840 42.67% 21.34% 27.05%
over $80,840 up to $93,000 over $80,84 up to $93,000 44.34% 22.17% 28.17%
over $93,000 up to $115,739 over $93,000 up to $113,804 45.25% 22.63% 29.31%
over $115,739 over $113,804 48.25% 24.13% 33.06%
NS Basic Personal Amount
2005 2004 Tax Rate
$7,231 $7,231 8.79%

NS has a surtax of 10%, which is included in all the above rates.  The surtax applies when the NS income tax (after deducting non-refundable tax credits) exceeds $10,000.  If provincial income tax after tax credits was $12,000, the surtax would be $200, or ($12,000 - $10,000) x 10%.  This surtax applies to both 2005 and 2004.  For a single person with a tax credit for only the basic personal amount, the provincial income tax will reach $10,000 at a taxable income of $80,840 in 2005 and 2004.

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New Brunswick (NB)
combined federal & provincial tax rates
2005 Taxable Income 2004 Taxable Income   Marginal Tax Rate
(before Nov 2005 revision to 2005 federal rate)
Other
Income
Capital
Gains
Canadian
Dividends
first $32,730 first $32,183 25.68% 12.84% 10.81%
over $32,730 up to $35,595 over $32,183 up to $35,000 30.82% 15.41% 17.23%
over $35,595 up to $65,462 over $35,000 up to $64,368 36.82% 18.41% 24.73%
over $65,462 up to $71,190 over $64,368 up to $70,000 38.52% 19.26% 26.86%
over $71,190 up to $106,427 over $70,000 up to $104,648 42.52% 21.26% 31.86%
over $106,427 up to $115,739 over $104,648 up to $113,804 43.84% 21.92% 33.51%
over $115,739 over $113,804 46.84% 23.42% 37.26%
NB Basic Personal Amount
2005 2004 Tax Rate
$7,888 $7,756 9.68%

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Quebec (QC)
combined federal & provincial tax rates

2005 Taxable Income

2004 Taxable Income

  Marginal Tax Rate
(before Nov 2005 revision to 2005 federal rate)
Other
Income
Capital
Gains
Canadian
Dividends
first $28,030 first $27,635 29.36% 14.68% 9.25%
over $28,030 up to $35,595 over $27,635 up to $35,000 33.36% 16.68% 14.25%
over $35,595 up to $56,070 over $35,000 up to $55,280 38.37% 19.19% 20.51%
over $56,070 up to $71,190 over $55,280 up to $70,000 42.37% 21.19% 25.51%
over $71,190 up to $115,739 over $70,000 up to $113,804 45.71% 22.86% 29.68%
over $115,739 over $113,804 48.22% 24.11% 32.81%
QC Basic Personal Amount
Tax System 2005 2004 Tax Rate
General $6,365 $6,275 20%
Simplified $9,330 $9,200 20%

Most Quebec taxpayers also get a federal tax abatement (reduction) of 16.5% of basic federal tax, which has been included in all of the above rates.

Unlike other provinces and territories, QC does not apply the lowest provincial tax rate (16%) to the basic personal amount in calculating the non-refundable tax credits.

The Simplified Tax System was eliminated for 2005.  Previously, Quebec had two different tax systems for filing personal tax returns.

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Ontario (ON)
combined federal & provincial tax rates
2005 Taxable Income 2004 Taxable Income   Marginal Tax Rate
(before Nov 2005 revision to 2005 federal rate)
Other
Income
Capital
Gains
Canadian
Dividends
first $34,010 first $33,375 22.05% 11.03% 4.48%
over $34,010 up to $35,595 over $33,375 up to $35,000 25.15% 12.58% 8.36%
over $35,595 up to $59,880 over $35,000 up to $58,771 31.15% 15.58% 15.86%
over $59,880 up to $68,020 over $58,771 up to $66,752 32.98% 16.49% 16.86%
over $68,020 up to $70,560 over $66,752 up to $69,240 35.39% 17.70% 19.88%
over $70,560 up to $71,190 over $69,240 up to $70,000 39.41% 19.70% 22.59%
over $71,190 up to $115,739 over $70,000 up to $113,804 43.41% 21.70% 27.59%
over $115,739 over $113,804 46.41% 23.20% 31.34%
ON Basic Personal Amount
2005 2004 Tax Rate
$8,196 $8,044 6.05%

ON has two surtaxes, which are included in the above tax rates:
    1. a surtax of 20% of ON income tax (after deducting non-refundable tax credits) in excess of $3,929 in 2005 ($3,856 in 2004).  For a single person with a tax credit for only the basic personal amount, the ON tax will reach $3,929 at a taxable income of $59,880 in 2005 and will reach $3,856 at a taxable income of $58,771 in 2004.
    2. a surtax of 36% of ON income tax (after deducting non-refundable tax credits) in excess of $4,957 in 2005 ($4,864 in 2004).  For a single person with a tax credit for only the basic personal amount, the ON tax will reach $4,957  at a taxable income of $70,560 in 2005 and will reach $4,864 at a taxable income of $69,240 in 2004.

Note that the second surtax of 36% of ON income tax is in addition to the first surtax of 20%.  The surtax of 20% applies to ON income tax in excess of $3,929 but less than $4,957, and both surtaxes, for a total of 56%, apply to ON income tax in excess of $4,957.

Ontario Health Premium

Beginning July 1, 2004, the Ontario government started collecting, through the income tax system, an Ontario Health Premium that is based on an individual's taxable income.

Marginal tax rates above do not include the Ontario Health Premium, which increases the above rates by up to 1.2%

Ontario Health Premium

Taxable Income

2005 and Later Tax Years

2004 Tax Year

first $20,000 no premium no premium
over $20,000 up to $25,000 (taxable income - $20,000) x 6% (taxable income - $20,000) x 3%
over $25,000 up to $36,000 $300 $150
over $36,000 up to $38,500 $300 + (taxable income - $36,000) x 6% $150 + (taxable income - $36,000) x 3%
over $38,500 up to $48,000 $450 $225
over $48,000 up to $48,600 $450 + (taxable income - $48,000) x 25% $225 + (taxable income - $48,000) x 12.5%
over $48,600 up to $72,000 $600 $300
over $72,000 up to $72,600 $600 + (taxable income - $72,000) x 25% $300 + (taxable income - $72,000) x 12.5%
over $72,600 up to $200,000 $750 $375
over $200,000 up to $200,600 $750 + (taxable income - $200,000) x 25% $375 + (taxable income - $200,000) x 12.5%
over $200,600 $900 $450

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Manitoba (MB)
combined federal & provincial tax rates
2005 Taxable Income 2004 Taxable Income   Marginal Tax Rate
(before Nov 2005 revision to 2005 federal rate)
Other
Income
Capital
Gains
Canadian
Dividends
first $30,544 first $30,544 26.9% 13.5% 10.71%
over $30,544 up to $35,595 over $30,544 up to $35,000 30.0% 15.0% 14.58%
over $35,595 up to $65,000 over $35,000 up to $65,000 36.0% 18% 22.08%
over $65,000 up to $71,190 over $65,000 up to $70,000 39.4% 19.7% 26.33%
over $71,190 up to $115,739 over $70,000 up to $113,804 43.4% 21.7% 31.33%
over $115,739 over $113,804 46.4% 23.2% 35.08%
MB Basic Personal Amount
2005 2004 Tax Rate
$7,634 $7,634 10.9%

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Saskatchewan (SK)
combined federal & provincial tax rates
2005 Taxable Income 2004 Taxable Income   Marginal Tax Rate
(before Nov 2005 revision to 2005 federal rate)
Other
Income
Capital
Gains
Canadian
Dividends
first $35,595 first $35,000 27% 13.5% 7.08%
over $35,595 up to $36,770 over $35,000 up to $36,155 33% 16.5% 14.58%
over $36,770 up to $71,190 over $36,155 up to $70,000 35% 17.5% 17.08%
over $71,190 up to $105,056 over $70,000 up to $103,300 39% 19.5% 22.08%
over $105,056 up to $115,739 over $103,300 up to $113,804 41% 20.5% 24.58%
over $115,739 over $113,804 44% 22.0% 28.33%
SK Basic Personal Amount
2005 2004 Tax Rate
$8,404 $8,264 11%

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Alberta (AB)
combined federal & provincial tax rates
2005 Taxable Income 2004 Taxable Income   Marginal Tax Rate
(before Nov 2005 revision to 2005 federal rate)
Other
Income
Capital
Gains
Canadian
Dividends
first $35,595 first $35,000 26% 13% 7.83%
over $35,595 up to $71,190 over $35,000 up to $70,000 32% 16% 15.33%
over $71,190 up to $115,739 over $70,000 up to $113,804 36% 18% 20.33%
over $115,739 over $113,804 39% 19.5% 24.08%
AB Basic Personal Amount
2005 2004 Tax Rate
$14,523 $14,337 10%

Alberta Tax-free Resource Rebate

In January 2006 qualified Albertans received a tax-free payment of $400.  In order to qualify:

bullet

must have been resident of Alberta on September 1, 2005

bullet

must have filed a 2004 income tax return

bullet

families with children must be registered for the Canada Child Tax Benefit

There was a deadline of December 31, 2006 for filing the 2004 tax return or registering for the Canada Child Tax Benefit in order to qualify for the rebate.

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British Columbia (BC)
combined federal & provincial tax rates
2005 Taxable Income 2004 Taxable Income   Marginal Tax Rate
(before Nov 2005 revision to 2005 federal rate)
Other
Income
Capital
Gains
Canadian
Dividends
first $33,061 first $32,476 22.05% 11.03% 4.52%
over $33,061 up to $35,595 over $32,476 up to $35,000 25.15% 12.58% 8.40%
over $35,595 up to $66,123 over $35,000 up to $64,954 31.15% 15.58% 15.90%
over $66,123 up to $71,190 over $64,954 up to $70,000 33.70% 16.85% 19.08%
over $71,190 up to $75,917 over $70,000 up to $74,575 37.70% 18.85% 24.08%
over $75,917 up to $92,185 over $74,575 up to $90,555 39.70% 19.85% 26.58%
over $92,185 up to $115,739 over $90,555 up to $113,804 40.70% 20.35% 27.83%
over $115,739 over $113,804 43.70% 21.85% 31.58%
BC Basic Personal Amount
2005 2004 Tax Rate
$8,676 $8,523 6.05%

BC Tax Reduction:

Beginning with the 2005 tax year, individuals with net income of $16,000 or less will get a provincial non-refundable tax credit of $360.  The credit will be reduced by 3.6% of income over $16,000, being reduced to zero at income of $26,000.

British Columbia Medical Services Plan

BC charges a Medical Services Plan (MSP) premium.  There is premium assistance available, based on adjusted net income for the 2 preceding tax years for an individual or couple, but the premium is not collected through the income tax system.  The premium for many employees is paid, in part or in full, by their employers directly to the government.  Non-employees are billed directly by MSP.

Adjusted net income is calculated by taking combined net income for the previous tax year, and making the following deductions:

Spouse $3,000
65 yrs of age or older $3,000
Spouse 65 yrs of age or older $3,000
Children - amount per child 
     - this deduction is reduced by 50% of 
     child care expenses claimed on either
     spouse's tax return
$3,000
Disability - for each disabled person $3,000

 Thus, a couple who are both over 65 years of age would qualify for reduced premiums with combined net income before adjustments of $33,000 or less ($37,000 or less as at July 1, 2005).

BC Medical Services Plan Annual Premiums
Adjusted Net Income (individual or couple) One
Person
Family
of 2
Family of
3 or More
Current Levels Levels as of July 1, 2005
first $16,000 first $20,000 no premium no premium no premium
over $16,000 up to $18,000 over $20,000 up to $22,000 $129.60 $230.40 $259.20
over $18,000 up to $20,000 over $22,000 up to $24,000 $259.20 $460.80 $518.40
over $20,000 up to $22,000 over $24,000 up to $26,000 $388.80 $691.20 $777.60
over $22,000 up to $24,000 over $26,000 up to $28,000 $518.40 $921.60 $1,036.80
over $24,000 over $28,000 $648.00 $1,152.00 $1,296.00

The Feb 15, 2005 BC Budget announced increased thresholds for Medical Services Plan premium assistance, effective July 1, 2005.

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Yukon (YT)
combined federal & territorial tax rates
2005 Taxable Income 2004 Taxable Income   Marginal Tax Rate
(before Nov 2005 revision to 2005 federal rate)
Other
Income
Capital
Gains
Canadian
Dividends
first $35,595 first $35,000 23.04% 11.52% 4.76%
over $35,595 up to $71,190 over $35,000 up to $70,000 31.68% 15.84% 15.56%
over $71,190 up to $76,628 over $70,000 up to $76,224 37.44% 18.72% 22.76%
over $76,628 up to $115,739 over $76,224 up to $113,804 38.01% 19.01% 23.10%
over $115,739 over $113,804 42.40% 21.20% 28.59%
YT Basic Personal Amount
2005 2004 Tax Rate
$8,148 $8,012 7.04%

YT has a surtax of 5%, which is included in the above rates.  The surtax applies when the YT income tax (after deducting non-refundable tax credits) exceeds $6,000.  If YT income tax after tax credits was $8,000, the surtax would be $100, or ($8,000 - 6,000) x 5%.  This surtax applies to both 2005 and 2004.  For a single person with a tax credit for only the basic personal amount, the YT income tax will reach $6,000 at a taxable income of approximately $76,630 in 2005 ($76,220 in 2004).

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Northwest Territories (NT
combined federal & territorial tax rates)
2005 2004

Taxable Income

  Marginal Tax Rate
(before Nov 2005 revision to 2005 federal rate)

Taxable Income

  Marginal Tax Rate
Other
Income
Capital
Gains
Canadian
Dividends
Other
Income
Capital
Gains
Canadian
Dividends
first $33,811 21.9% 10.95% 3.33% first $33,245 23.2% 11.60% 4.83%
over $33,811 up to 35,595 24.6% 12.30% 6.58% over $33,245 up to 35,000 25.9% 12.95% 8.21%
over $35,595 up to $67,622 30.6% 15.30% 14.08% over $35,000 up to $66,492 31.9% 15.95% 15.71%
over $67,622 up to $71,190 34.2% 17.10% 18.58% over $66,492 up to $70,000 33.95%(1) 16.98%(1) 18.27%(1)
over $71,190 up to $109,939 38.2% 19.10% 23.58% over $70,000 up to $108,101 37.95%(1) 18.98%(1) 23.27%(1)
over $109,939 up to $115,739 40.05% 20.03% 25.90% over $108,101 up to $113,804 39.55%(2) 19.78%(2) 25.27%(2)
over $115,739 43.05% 21.53% 29.65% over $113,804 42.55%(2) 21.28%(2) 29.02%(2)
NT Basic Personal Amount
2005 Tax Rate 2004 Tax Rate
$11,609 5.9% $11,415 7.2%

Notes (1) and (2) These are the effective rates for 2004 after the July 1, 2004 increases in the following NT tax brackets:
    (1) over $66,492 up to $108,101 increased from 11.7% to 12.2%
    (2) over $108,101 increased from 13.05% to 14.05%

 

Nunavut (NU)
combined federal & territorial tax rates
2005 Taxable Income 2004 Taxable Income   Marginal Tax Rate
(before Nov 2005 revision to 2005 federal rate)
Other
Income
Capital
Gains
Canadian
Dividends
first $35,595 first $35,000 20% 10.0% 3.33
over $35,595 up to $71,190 over $35,000 up to $70,000 29% 14.5% 14.58%
over $71,190 up to $115,739 over $70,000 up to $113,804 35% 17.5% 22.08%
over $115,739 over $113,804 40.5% 20.3% 28.96%
NU Basic Personal Amount
2005 2004 Tax Rate
$10,674 $10,495 4%

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Revised: January 25, 2016

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