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Tax Facts 2024

Based on tax rates announced to July 1, 2024

Guide

Tax Facts 2024 provides you with a summary of 2024 personal income tax rates and amounts, as well as corporate tax rates based on announcements made to July 1, 2024

What's Inside

Top Personal Rates for 2024

We have set out the top rates in Canada on regular income, dividends and capital gains.

Combined Federal and Provincial/Territorial Tax Brackets

We have condensed the detailed tax rate information for each province/territory into a chart. You can use the chart that applies to you to estimate your combined federal and provincial/territorial tax liability and to determine effective tax rates on regular income, dividends and capital gains within the income ranges provided.

Quick Estimates

To allow you to quickly estimate your tax liability, we have provided a quick estimate chart.

RRSP, RPP and DPSP Limits

We have set out the limits for registered retirement savings plans, registered pension plans and deferred profit sharing plans.

CPP, El and QPIP Rates

We have provided the 2024 Employment Insurance rates and premiums, the 2024 Quebec Parental Insurance rates and premiums and the 2024 Canada Pension Plan rates and contributions.

Business Tax Rate Information

We have provided a summary of corporate income tax rates, as well as employer payroll and sales tax rates.

2024 top personal marginal tax rates
Jurisdiction (1)Tax on Income Top Rate (%)Tax-On-Tax Top Rate (%)Provincial Surtax (%)2024 Combined Top Marginal Rates
Regular Income (%)Eligible Dividends (%)Ineligible Dividends (%)Capital Gains (%)
At 50% Inclusion Rate (2)At 66.67% Inclusion Rate (2)
Federal33.00---------------------
British Columbia > $253K20.50------53.5036.5448.8926.7535.67
Alberta > $356K15.00------48.0034.3142.3024.0032.00
Saskatchewan (3)14.50------47.5029.6441.3423.7531.67
Manitoba17.40------50.4037.7846.6725.2033.60
Ontario13.16---20.00/36.0053.5339.3447.7426.7735.69
Québec25.75------53.3140.1148.7026.6635.54
New Brunswick19.50------52.5032.4046.8326.2535.00
Nova Scotia21.00------54.0041.5848.2727.0036.00
Prince Edward Island (4)18.75------51.7536.2047.6325.8834.50
Newfoundland & Labrador > 1.10M21.80------54.8046.2048.9627.4036.53
Yukon > $500K15.00------48.0028.9244.0524.0032.00
Northwest Territories14.05------47.0528.3336.8223.5331.37
Nunavut11.50------44.5033.0837.7922.2529.67
Non-resident---48.00---48.84------24.4232.56

Notes:

(1) The federal top marginal tax rate applies on taxable income over $246,752 for 2024. Where the provincial or territorial threshold is higher than federal, the amount is indicated above.

(2) The 2024 federal budget proposes to increase the capital gains inclusion rate from 50% to 66.67% on the portion of capital gains realized in the year on or after June 25, 2024 that exceeds $250,000.

(3) Saskatchewan — The dividend tax credit rate on the taxable amount of ineligible dividends increased from 2.11% to 2.52% for 2024.

(4) Prince Edward Island — Beginning in 2024, the personal tax brackets changed from three brackets to five, and the 10% surtax has been eliminated. The top marginal tax rate of 18.75% applies to taxable income over $140,000.

2024 combined federal and provincial/territorial tax brackets

Use the following tables to estimate combined federal and provincial/territorial tax and effective combined tax rates on regular income, dividends and capital gains. Tax rates and amounts include surtaxes where applicable. Reduce the tax by your total federal and provincial/territorial tax credits. Note that the 2024 federal basic personal amount (BPA) increases from $14,156 to $15,705 for taxpayers with net income of $173,205 or less. For income above this threshold, the additional BPA of $1,549 is reduced until it becomes nil at net income of $246,752. The marginal tax rates in the following tables have been adjusted for this change. Provincial/territorial tax reductions at lower levels of income have not been included.

* The capital gains inclusion rate of 66.67% is based on proposed legislation that is not yet law as at the date of this publication. Refer to article, Government confirms changes to capital gains inclusion rate, for more details.

British Columbia
Taxable Income Range
($)
Tax on Bottom of Range (Regular Income)
($)
Rate on Regular Income
(%)
Rate on Eligible Dividends
(%)
Rate on Ineligible Dividends
(%)
Rate on Capital Gains at 50% Inclusion
(%)
Rate on Capital Gains at 66.67% Inclusion*
(%)
From:To:
047,937020.060.0010.4310.0313.37
47,93755,8679,61622.700.0013.4711.3515.13
55,86795,87511,41628.207.5619.8014.1018.80
95,875110,07622,69931.007.5623.0215.5020.67
110,076111,73327,10132.797.9625.0716.4021.86
111,733133,66427,64438.2915.5531.4019.1525.53
133,664173,20536,04240.7018.8834.1720.3527.13
173,205181,23252,13544.0223.4537.9822.0129.35
181,232246,752
55,66846.1226.3540.4023.0630.75
246,752252,75285,88349.8031.4444.6424.9033.20
252,752and over88,87153.5036.5448.8926.7535.67
Alberta
Taxable Income Range
($)
Tax on Bottom of Range (Regular Income)
($)
Rate on Regular Income
(%)
Rate on Eligible Dividends
(%)
Rate on Ineligible Dividends
(%)
Rate on Capital Gains at 50% Inclusion
(%)
Rate on Capital Gains at 66.67% Inclusion*
(%)
From:To:
055,867025.002.6015.8512.5016.67
55,867111,73313,96730.5010.1622.1815.2520.33
111,733148,26931,00636.0017.7528.5018.0024.00
148,269173,20544,15938.0020.5130.8019.0025.33
173,205177,92253,63541.3225.0934.6220.6627.55
177,922237,23055,58342.3226.4735.7721.1628.21
237,230246,75280,68043.3227.8536.9221.6628.88
246,752355,84584,80547.0032.9341.1523.5031.33
355,845and over136,07848.0034.3142.3024.0032.00
Saskatchewan
Taxable Income Range
($)
Tax on Bottom of Range (Regular Income)
($)
Rate on Regular Income
(%)
Rate on Eligible Dividends
(%)
Rate on Ineligible Dividends
(%)
Rate on Capital Gains at 50% Inclusion
(%)
Rate on Capital Gains at 66.67% Inclusion*
(%)
From:To:
052,057025.500.0016.0412.7517.00
52,05755,86713,27527.502.0718.3413.7518.33
55,867111,73314,32233.009.6324.6716.5022.00
111,733148,73432,75838.5017.2230.9919.2525.67
148,734173,20547,00340.5019.9833.2920.2527.00
173,205246,75256,91443.8224.5637.1121.9129.21
246,752and over89,14047.5029.6441.3423.7531.67
Manitoba
Taxable Income Range
($)
Tax on Bottom of Range (Regular Income)
($)
Rate on Regular Income
(%)
Rate on Eligible Dividends
(%)
Rate on Ineligible Dividends
(%)
Rate on Capital Gains at 50% Inclusion
(%)
Rate on Capital Gains at 66.67% Inclusion*
(%)
From:To:
047,000025.803.8618.3812.9017.20
47,00055,86712,12627.756.5620.6313.8818.50
55,867100,00014,58733.2514.1226.9516.6322.17
100,000111,73329,26137.9020.5332.3018.9525.27
111,733173,20533,70843.4028.1238.6221.7028.93
173,205246,75260,38646.7232.7042.4423.3631.15
246,752and over94,74550.4037.7846.6725.2033.60
Ontario (does not include the Ontario Health Premium Tax)
Taxable Income Range
($)
Tax on Bottom of Range (Regular Income)
($)
Rate on Regular Income
(%)
Rate on Eligible Dividends
(%)
Rate on Ineligible Dividends
(%)
Rate on Capital Gains at 50% Inclusion
(%)
Rate on Capital Gains at 66.67% Inclusion*
(%)
From:To:
051,446020.050.009.2410.0313.37
51,44655,86710,31524.150.0013.9512.0816.10
55,86790,59511,38329.657.5620.2814.8319.77
90,595102,89421,67931.488.9222.3815.7420.99
102,894106,73525,55133.8912.2425.1616.9522.59
106,735111,73326,85337.9117.7929.7818.9525.27
111,733150,00028,74843.4125.3836.1021.7028.94
150,000173,20545,35944.9727.5337.9022.4829.98
173,205220,00055,79448.2932.1141.7124.1432.19
220,000246,75278,39049.8534.2643.5024.9233.23
246,752and over91,72453.5339.3447.7426.7735.69
Québec (does not include the Contribution to the health services fund, and the Premium payable under the Québec prescription drug insurance plan)
Taxable Income Range
($)
Tax on Bottom of Range (Regular Income)
($)
Rate on Regular Income
(%)
Rate on Eligible Dividends
(%)
Rate on Ineligible Dividends
(%)
Rate on Capital Gains at 50% Inclusion
(%)
Rate on Capital Gains at 66.67% Inclusion*
(%)
From:To:
051,780026.533.1717.9013.2717.69
51,78055,86713,73531.5310.0723.6515.7721.02
55,867103,54515,02336.1216.3928.9318.0624.08
103,545111,73332,24341.1223.2934.6820.5627.41
111,733126,00035,61045.7129.6339.9622.8630.47
126,000173,20542,13147.4632.0441.9723.7331.64
173,205246,75264,53550.2335.8645.1625.1233.49
246,752and over101,47753.3140.1148.7026.6635.54
New Brunswick
Taxable Income Range
($)
Tax on Bottom of Range (Regular Income)
($)
Rate on Regular Income
(%)
Rate on Eligible Dividends
(%)
Rate on Ineligible Dividends
(%)
Rate on Capital Gains at 50% Inclusion
(%)
Rate on Capital Gains at 66.67% Inclusion*
(%)
From:To:
049,958024.400.0014.5112.2016.27
49,95855,86712,19029.000.0019.8014.5019.33
55,86799,91613,90334.507.5626.1317.2523.00
99,916111,73329,10036.5010.3228.4318.2524.33
111,733173,20533,41342.0017.9134.7521.0028.00
173,205185,06459,23245.3222.4938.5722.6630.21
185,064246,75264,60648.8227.3242.5924.4132.55
246,752and over94,71952.5032.4046.8326.2535.00
Nova Scotia
Taxable Income Range
($)
Tax on Bottom of Range (Regular Income)
($)
Rate on Regular Income
(%)
Rate on Eligible Dividends
(%)
Rate on Ineligible Dividends
(%)
Rate on Capital Gains at 50% Inclusion
(%)
Rate on Capital Gains at 66.67% Inclusion*
(%)
From:To:
025,000023.790.0013.5311.9015.86
25,00029,5905,94824.320.6514.1412.1616.21
29,59055,8677,06430.489.1521.2215.2420.32
55,86759,18015,07235.9816.7127.5517.9923.99
59,18075,00016,26437.7019.0829.5318.8525.13
75,00093,00022,22837.1718.3528.9218.5924.78
93,000111,73328,91838.0019.5029.8719.0025.33
111,733150,00036,03743.5027.0936.2021.7529.00
150,000173,20552,68347.0031.9240.2223.5031.33
173,205246,75263,59050.3236.5044.0425.1633.55
246,752and over100,59554.0041.5848.2727.0036.00

(Note that the Nova Scotia BPA increases from $8,481 to $11,481 for taxpayers with net income of $25,000 or less. For income above this threshold, the additional BPA of $3,000 is reduced until it becomes nil at net income of $75,000. The marginal tax rates in the following table have been adjusted for this change.)

Prince Edward Island
Taxable Income Range
($)
Tax on Bottom of Range (Regular Income)
($)
Rate on Regular Income
(%)
Rate on Eligible Dividends
(%)
Rate on Ineligible Dividends
(%)
Rate on Capital Gains at 50% Inclusion
(%)
Rate on Capital Gains at 66.67% Inclusion*
(%)
From:To:
032,656024.650.0016.4612.3316.43
32,65655,8678,05028.634.3221.0414.3219.09
55,86764,31314,69534.1311.8827.3617.0722.75
64,313105,00017,57837.1516.0530.8418.5824.77
105,000111,73332,69338.5017.9132.3919.2525.67
111,733140,00035,28544.0025.5038.7222.0029.33
140,000173,20547,72344.7526.5439.5822.3829.83
173,205246,75262,58248.0731.1143.3924.0432.05
246,752and over97,93351.7536.2047.6325.8834.50
Newfoundland & Labrador
Taxable Income Range
($)
Tax on Bottom of Range (Regular Income)
($)
Rate on Regular Income
(%)
Rate on Eligible Dividends
(%)
Rate on Ineligible Dividends
(%)
Rate on Capital Gains at 50% Inclusion
(%)
Rate on Capital Gains at 66.67% Inclusion*
(%)
From:To:
043,198023.703.3113.1911.8515.80
43,19855,86710,23829.5011.3219.8614.7519.67
55,86786,39513,97535.0018.8826.1917.5023.33
86,395111,73324,66036.3020.6727.6818.1524.20
111,733154,24433,85841.8028.2634.0120.9027.87
154,244173,20551,62743.8031.0236.3121.9029.20
173,205215,94359,93247.1235.6040.1223.5631.41
215,943246,75280,06949.1238.3642.4224.5632.75
246,752275,87095,20152.8043.4446.6626.4035.20
275,870551,739110,57553.8044.8247.8126.9035.87
551,7391,103,478258,99354.3045.5148.3827.1536.20
1,103,478and over558,58754.8046.2048.9627.4036.53
Yukon
Taxable Income Range
($)
Tax on Bottom of Range (Regular Income)
($)
Rate on Regular Income
(%)
Rate on Eligible Dividends
(%)
Rate on Ineligible Dividends
(%)
Rate on Capital Gains at 50% Inclusion
(%)
Rate on Capital Gains at 66.67% Inclusion*
(%)
From:To:
055,867021.400.0013.4610.7014.27
55,867111,73311,95629.507.5622.7714.7519.67
111,733173,20528,43636.9015.1531.2818.4524.60
173,205246,75251,11942.2520.9937.4421.1328.17
246,752500,00082,19345.8025.8941.5222.9030.53
500,000and over198,18148.0028.9244.0524.0032.00
Northwest Territories
Taxable Income Range
($)
Tax on Bottom of Range (Regular Income)
($)
Rate on Regular Income
(%)
Rate on Eligible Dividends
(%)
Rate on Ineligible Dividends
(%)
Rate on Capital Gains at 50% Inclusion
(%)
Rate on Capital Gains at 66.67% Inclusion*
(%)
From:To:
050,597020.900.006.8710.4513.93
50,59755,86710,57523.600.009.8611.8015.73
55,867101,19811,81829.107.5616.1814.5519.40
101,198111,73325,01032.708.5320.3216.3521.80
111,733164,52528,45538.2016.1226.6519.1025.47
164,525173,20548,62140.0518.6728.7720.0326.70
173,205246,75252,09843.3723.2532.5921.6928.91
246,752and over83,99247.0528.3336.8223.5331.37
Nunavut
Taxable Income Range
($)
Tax on Bottom of Range (Regular Income)
($)
Rate on Regular Income
(%)
Rate on Eligible Dividends
(%)
Rate on Ineligible Dividends
(%)
Rate on Capital Gains at 50% Inclusion
(%)
Rate on Capital Gains at 66.67% Inclusion*
(%)
From:To:
053,268019.000.008.479.5012.67
53,26855,86710,12122.002.0611.9211.0014.67
55,867106,53710,69327.509.6218.2413.7518.33
106,537111,73324,62729.5012.3820.5414.7519.67
111,733173,20526,16035.0019.9726.8717.5023.33
173,205246,75247,67540.8228.0033.5520.4127.21
246,752and over77,69444.5033.0837.7922.2529.67
Non-Resident
Taxable Income Range
($)
Tax on Bottom of Range (Regular Income)
($)
Rate on Regular Income
(%)
Rate on Eligible Dividends
(%)
Rate on Ineligible Dividends
(%)
Rate on Capital Gains at 50% Inclusion
(%)
Rate on Capital Gains at 66.67% Inclusion*
(%)
From:To:
055,867022.20------11.1014.80
55,867111,73312,40230.34------15.1720.23
111,733173,20529,35238.48------19.2425.65
173,205246,75253,00742.92------21.4628.61
246,752and over84,57348.84------24.4232.56

2024 personal tax quick estimate table

Estimates include basic personal tax credits. Low-income tax reductions and refundable provincial/territorial credits are not included. The following are also not included: the Ontario Health Premium, the Contribution to the health services fund (Québec), and the Premium payable under the Québec prescription drug insurance plan.

2024 personal tax quick estimate table for British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Québec
Regular Income LevelBCABSKMBONQC
10,000------
15,000122---131-
20,0001,0206448031,1001,028810
25,0002,0231,7062,0782,3902,0312,136
30,0003,0262,9563,3533,6803,0333,463
35,0004,0294,2064,6284,9704,0364,789
40,0005,0325,4565,9036,2605,0386,115
45,0006,0356,7067,1787,5506,0417,441
50,0007,0927,9568,4538,8997,0438,768
55,0008,2279,2069,78710,2868,19110,255
60,0009,58910,68311,38911,9019,62612,021
65,00010,99912,20813,03913,56311,10913,827
70,00012,40913,73314,68915,22612,59115,633
75,00013,81915,25816,33916,88814,07417,439
80,00015,22916,78317,98918,55115,55619,244
85,00016,63918,30819,63920,21317,03921,050
90,00018,04919,83321,28921,87618,52122,856
95,00019,45921,35822,93923,53820,08424,662
100,00020,98522,88324,58925,20121,65826,468
110,00024,08525,93327,88928,99125,10930,402
120,00027,81729,43831,64433,23629,35434,894
130,00031,64633,03835,49437,57633,69539,535
140,00035,62836,63839,34441,91638,03644,281
150,00039,69840,27243,21946,25642,37749,027
(top ON) 220,00070,55468,84573,12178,18775,40883,544
(top federal) 246,75282,89180,26084,84290,68588,74296,982
(top BC) 252,75285,87983,08087,69293,70991,954100,180
(top AB) 355,845141,034131,534136,661145,668147,139155,134
(top YT) 500,000218,156200,729205,135218,322224,305231,976
(top NL) 1,103,478541,017490,398491,787522,475547,344553,659
Top Combined Marginal Rates
Regular Income53.50%48.00%47.50%50.40%53.53%53.31%
Dividends — Eligible36.54%34.31%29.64%37.78%39.34%40.11%
Dividends — Ineligible48.89%42.30%41.34%46.67%47.74%48.70%
Capital Gains at 50% Inclusion26.75%24.00%23.75%25.20%26.77%26.66%
Capital Gains at 66.67% Inclusion35.67%32.00%31.67%33.60%35.69%35.54%
2024 personal tax quick estimate table for New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland & Labrador, Yukon, Northwest Territories, and Nunavut
Regular Income LevelNBNSPEINLYTNWTNU
10,000-------
15,000184309145364---
20,0001,2981,3931,2721,443919799694
25,0002,5182,5832,5042,6281,9891,8441,644
30,0003,7383,8243,7373,8133,0592,8892,594
35,0004,9585,3485,0624,9984,1293,9343,544
40,0006,1786,8716,4946,1835,1994,9794,494
45,0007,3988,3957,9257,4736,2696,0245,444
50,0008,6209,9199,3578,9487,3397,0696,394
55,00010,07011,44310,78810,4238,4098,2337,396
60,00011,74713,20812,44712,1259,8149,6408,723
65,00013,47215,09314,17413,87511,28911,09510,098
70,00015,19716,97816,03215,62512,76412,55011,473
75,00016,92218,86317,88917,37514,23914,00512,848
80,00018,64720,72119,74719,12515,71415,46014,223
85,00020,37222,58021,60420,87517,18916,91515,598
90,00022,09724,43823,46222,67218,66418,37016,973
95,00023,82226,31425,31924,48720,13919,82518,348
100,00025,54928,21427,17726,30221,61421,28019,723
110,00029,19932,01430,95929,93224,56424,50722,542
120,00033,30436,26835,26434,01628,12628,23225,947
130,00037,50440,61839,66438,19631,81632,05229,447
140,00041,70444,96844,06442,37635,50635,87232,947
150,00045,90449,31848,53946,55639,19639,69236,447
(top ON) 220,00078,07883,77081,41678,76467,53069,01063,668
(top federal) 246,75291,13797,23094,27491,90478,83280,61174,587
(top BC) 252,75294,287100,47097,37995,07281,58083,43477,257
(top AB) 355,845148,411156,141150,730150,305128,797131,939123,134
(top YT) 500,000224,093233,984225,330227,860194,820199,764187,283
(top NL) 1,103,478540,919559,862537,630555,290484,489483,701455,830
Top Combined Marginal Rates
Regular Income52.50%54.00%51.75%54.80%48.00%47.05%44.50%
Dividends — Eligible32.40%41.58%36.20%46.20%28.92%28.33%33.08%
Dividends — Ineligible46.83%48.27%47.63%48.96%44.05%36.82%37.79%
Capital Gains at 50% Inclusion26.25%27.00%25.88%27.40%24.00%23.53%22.25%
Capital Gains at 66.67% Inclusion35.00%36.00%34.50%36.53%32.00%31.37%29.67%
RRSP contribution limits (1)
YearDollar LimitIncome Level(2)
2023$30,780$171,000
2024$31,560$175,333
2025$32,490$180,500
2026IndexedIndexed

(1) RRSP Contribution Limit for a year is the lesser of the dollar limit for that year and 18% of the prior year's earned income, less any pension adjustment for the prior year (reported on your T4).

(2) Earned income needed in prior year for maximum contribution.

RPP and DPSP limits
YearDefined Benefit RPP(1)Money Purchase RPP(2)
2023$3,507$31,560
2024$3,610$32,490
2025IndexedIndexed

(1) Maximum pension benefit per year of service.

(2) Annual contribution limit.

Note: The DPSP limit is one-half of the money purchase RPP annual contribution limit.

2024 Employment insurance rates and premiums
ProvinceMaximum Yearly Insurable EarningsEmployee's Premium RateEmployer's Premium RateMaximum Yearly Employee PremiumMaximum Yearly Employer Premium
All provinces except Québec$63,2001.66%2.324%$1,049.12$1,468.77
Québec$63,2001.32%1.848%$834.24$1,167.94
2024 Québec parental insurance rates and premiums
Salaried or Self-employedMaximum Yearly Insurable EarningsEmployee's / Individual's Premium RateEmployer's Premium RateMaximum Yearly Employee / Individual PremiumMaximum Yearly Employer Premium
Salaried$94,0000.494%0.692%$464.36$650.48
Self-employed$94,0000.878%N/A$825.32N/A
2024 Canada pension plan rates and contributions*
Maximum Pensionable EarningsBasic ExemptionMaximum Contributory EarningsEmployee and Employer RateMaximum Employee / Employer ContributionMaximum Self-Employed Contribution
$68,500$3,500$65,0005.95%$3,867.50$7,735.00
Second Additional CPP ContributionMaximum Pensionable EarningsAdditional Maximum Annual Pensionable EarningsEmployee and Employer RateMaximum Employee / Employer ContributionMaximum Self-Employed Contribution
CPP2$68,500$73,2004.00%$188.00$376.00

*Québec employers deduct the Québec Pension Plan (QPP) contributions instead of CPP contributions. Earnings and exemption amounts are the same as above; employee/employer rates are 6.40% for maximum employee/employer contribution of $4,160 and maximum self-employed contribution of $8,320, second additional contribution rates and amounts are the same as above.

2024 corporate income tax facts and figures

The rates shown are nominal tax rates as at July 1, 2024. Add federal and provincial/territorial rates to get a combined rate. Rate and amount changes are set out in the notes and should be prorated for taxation years that straddle the effective dates (except where noted).

Corporate income tax facts and figures
ProvinceCanadian-Controlled Private Corporations (CCPCs)Other Corporations
Active Business Income (ABI)Investment IncomeManufacturing & ProcessingOther
RateIncome Limit
Federal9.00%/4.50%$500,00038.67%15.00%/7.50%15.00%
British Columbia2.00500,00012.0012.0012.00
Alberta2.00500,0008.008.008.00
Saskatchewan1.00600,00012.0010.0012.00
Manitoba0.00500,00012.0012.0012.00
Ontario3.20500,00011.5010.0011.50
Québec3.20500,00011.5011.5011.50
New Brunswick2.50500,00014.0014.0014.00
Nova Scotia2.50500,00014.0014.0014.00
Prince Edward Island1.00500,00016.0016.0016.00
Newfoundland & Labrador2.50500,00015.0015.0015.00
Yukon0.00500,00012.002.5012.00
Northwest Territories2.00500,00011.5011.5011.50
Nunavut3.00500,00012.0012.0012.00

Note of changes (2023 and later years):

Federal

  • The business limit is phased out for Canadian-controlled private corporations (CCPCs) based on the greater of two components:
    • For corporations that have taxable capital employed in Canada of more than $10 million, the business limit is reduced on a straight- line basis and is eliminated when taxable capital reaches $50 million.
    • For corporations that earned more than $50,000 of passive investment income in a year, the business limit is reduced by $5 for every $1 of investment income earned and is eliminated when investment income earned reaches $150,000. Ontario and New Brunswick are not implementing the investment income restriction to the provincial business limit.
  • The corporate tax rates are temporarily reduced for qualifying companies involved in zero-emission technology manufacturing or process activities. The tax rates on zero-emission technology manufacturing profits would be 4.5% where that income would otherwise be taxed at the 9% small business tax rate, and 7.5% where that income would otherwise be taxed at the 15% general corporate tax rate. The reduced tax rates apply to taxation years that begin after 2021 and will be gradually phased out in taxation years that begin in 2032 (instead of 2029), and fully phased out for taxation years that begin after 2034 (instead of 2031).
  • 30.67% of investment income is eligible for a refund at the rate of 38.33% of dividends paid.
  • The federal rate on personal services business income is 33.0%.
  • The 2024 federal budget proposes to increase the capital gains inclusion rate from 50% to 66.67% for capital gains realized on or after June 25, 2024.
  • An additional tax applies to bank and life insurer groups of 1.5% on taxable income over $100 million, which increases the tax rate from 15% (in the chart above) to 16.5%. The $100 million taxable income exemption must be shared amongst group members.

Saskatchewan

  • Rate on ABI up to the business limit temporarily decreased from 2% to 0% effective Oct. 1, 2020. This rate increased to 1% effective July 1, 2023 and will increase to 2% effective July 1, 2025.

Québec

  • Corporations must either meet the minimum number of remunerated hours test or operate in the manufacturing or primary (MOP) industries to access the small business deduction (SBD).
  • To meet the remunerated hours test, the corporation must have paid its employees for at least 5,500 hours per year in its current or previous taxation year. Where the number of hours worked falls below this threshold, the SBD rate will be reduced linearly when the number of hours paid per year falls between 5,000 and 5,500 hours. Where the hours are less than 5,000, no SBD will be available.
  • Small-and medium-sized businesses (SMBs) in the MOP industries that do not meet the remunerated hours test can benefit from the full SBD rate if 50% or more of their activities are in the MOP sector. Where this proportion is between 25% and 50%, the SBD rate will be reduced.
  • If a corporation in the MOP sector meets both the minimum proportion of activities test (over 25%) and the minimum number of remunerated hours test (over 5,000 hours), the SBD rate is equal to the greater of the rates calculated under the two tests

Newfoundland and Labrador

  • Rate on ABI up to the business limit decreased from 3% to 2.5% effective January 1, 2024.

2024 employer payroll tax

The following jurisdictions levy an employer payroll tax on remuneration for individuals employed in that jurisdiction. Tax rates for 2024 are listed below. This chart does not include certain other taxes paid by employees as a payroll deduction in NWT, Nunavut, and Québec. 

Employer payroll tax
JurisdictionPayroll Tax Rates (%)Notes
MB0 - 4.3Payroll of $0 to $2.25 million, no tax; from $2.25 million to $4.5 million, 4.3% of payroll over $2.25 million; over $4.5 million, 2.15% of total payroll. Associated corporations and certain corporate partnerships are deemed to be a single employer.
ON0 - 1.95Rate of tax is 0.98% for taxable remuneration that does not exceed $200,000 and 1.95% for taxable remuneration over $400,000 (graduated rates apply for payrolls between the thresholds). Taxable remuneration is determined before taking into account any applicable exemption. The general exemption for eligible employers is $1 million. This exemption is indexed every five years and the next scheduled adjustment for inflation will be January 1, 2029. Private sector employers with annual Ontario payrolls over $5 million, including groups of associated employers, are not eligible for the exemption. However, eligible employers who are registered charities can claim the exemption even if their payroll exceeds $5 million. Special rules apply to eligible employers who are registered charities.
QC1.25 - 4.26 or 1.65 - 4.26Rate of tax is 4.26% unless the employer qualifies for a reduced contribution rate. An employer that is not in the public-sector and has total payroll of less than the total payroll threshold applicable for the year, which is $7.5 million, is eligible for a reduced rate. For employers whose total payroll is more than 50% attributable to activities in the primary and manufacturing sectors, the rate is 1.25% for payrolls of $1 million or less. The rate rises linearly from 1.25% to 4.26% where payroll is between $1 million and $7.5 million. All employers other than public sector employers and employers in the primary and manufacturing sectors described above will pay a rate of 1.65% for payrolls of $1 million or less. The rate rises linearly to 4.26% where payroll is between $1 million and $7.5 million. Associated employers must be considered when determining total payroll.
NL0 - 2.0Rate of tax is 2% on payrolls over $2 million (increased from $1.3 million). Associated corporations and certain partnerships must share this exemption threshold.
BC0 - 5.85Payroll of $0 to $1 million, no tax; from $1 million to $1.5 million, 5.85% of payroll between $1 million and $1.5 million; over $1.5 million, 1.95% of total payroll. Associated employers with combined payroll between $1 million and $1.5 million must share the $1 million exemption. If combined payroll of the associated employers exceeds $1.5 million, no exemption is available to any of the employers.
2024 sales tax
Jurisdiction(1)Sales Tax Rates (%)Combined Rates (%)Notes
Federal5.0----
BC7.012.0--
SK6.011.0--
MB7.012.0Manitoba previously announced a reduction to its sales tax rate from 7% to 6% effective July 1, 2020; however, this reduction has been deferred until further notice.
ON8.013.0Ontario has harmonized its sales tax system with the 5% GST to produce a combined federal/provincial rate of 13%.
QC9.97514.975The Québec system is harmonized with the GST though two separate tax systems remain — the GST and the QST.
NB, NS, PEI & NL10.015.0New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador have harmonized their sales tax system with the 5% GST to produce a combined federal/provincial rate of 15%.

Notes:

(1) Alberta, Nunavut, the Yukon, and the Northwest Territories do not impose a sales tax.


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