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Top Marginal & Average Tax Rates in Canada

The table below is sorted using the marginal tax rate for other income. The marginal tax rate differs from the average tax rate, which is always lower than the marginal tax rate.  The marginal tax rate is the rate of tax on the next dollar of income.  The average tax rate is total income tax divided by total income.

There are only 2 provinces (AB and SK) with a top marginal tax rate less than 50% for other income.

The province with the lowest top marginal tax rate is SK, but the territories of NU and NT are lower.  The following table shows the top marginal tax rates in 2023 by province and territory.

BC has the lowest average tax rate for $100,000 of other income for the provinces, followed by ON and then AB.

The 2024 rates that differ from 2023 rates for other income, eligible dividends and non-eligible dividends are shaded in gray.  The only change in the top rates for "other income" is PE, because they added 2 higher tax brackets and lowered the tax rates for the lower 3 brackets.

The average rate for other income is always slightly less in the current year than the prior year due to indexation, unless tax rates change.

The table also shows the average tax rate for a taxpayer earning $100,000 of "other income", determined using the Canadian Tax and RRSP Savings Calculator.

The tax rates used are as known on August 25, 2024.

Top rates for capital gains are 50% of the top rates for "other income", for the first $250,000 of capital gains, and the top rates are 66 2/3% of the top rates for "other income" for capital gains in excess of $250,000.  The change in the capital gain inclusion rate is effective for capital gains realized on or after June 25, 2024.

What is Other Income?

Other income includes interest, foreign dividends, employment income, etc.  However, the tax rates above do not include CPP or EI costs, deductions or tax credits. Ontario Health Premium is included, as are Quebec health premiums. NT and NU include refundable cost of living credits.

How is the Average Tax Rate Calculated?

The average tax rates above are calculated using the Detailed Canadian Tax Calculators, which uses total income taxes divided by income.

Check Out the Marginal and Average Tax Rates Yourself!

You can check out marginal and average tax rates at varying levels of capital gains, eligible and non-eligible dividends, and other income using our Basic Canadian Tax Calculator.  It provides these rates plus a comparison of taxes payable by province/territory for the current year and past 5 years.  You can also compare 2 different scenarios - change the province, the tax year, or just the amounts of each type of income to see the difference in taxable income and taxes payable.

You can also see the marginal tax rates for all income brackets for your province or territory in our Tax Rate Tables.

2023 Tax Comparisons

Compare provinces and territories at different levels of income.

2023 Tax Comparisons Employment Income

BC, ON, and AB are again the lowest tax provinces for a single person earning $80,000. See also comparisons for a single income family with 2 children.

2023 Tax Comparisons Eligible and Non-Eligible Dividends vs Interest

Taxes paid at varying levels of eligible and non-eligible dividends and interest for all provinces and territories.  The lowest-tax provinces for $70K of eligible dividends are AB and BC.

2022 Seniors Tax Comparisons Eligible Dividends vs Interest

Compare taxes paid in each province/territory by a senior with eligible dividends vs other income (foreign dividends, interest, etc.) - see how the taxes (including OAS clawback) are significantly lower with eligible dividends. BC is the lowest tax province in these analyses.

Revised: September 20, 2024