Tax season is upon us. Gathering your T-slips and receipts to start crunching the numbers can be anxiety inducing. If you think you might owe money, getting an early start can help soften the blow.
Regardless of your situation, knowing the tax brackets helps you prepare.
Read More: Find the best tax software to help you file your 2024 tax return by the CRA deadline of April 30, 2025.
What taxes do you pay in Canada?
In Canada, you are required to pay both the federal income tax and the provincial (or territorial) income tax of your place of residence.
The federal income tax rate is consistent across the country, but as the name suggests, provincial and territorial rates can vary depending on where you live.
The amount of tax you pay is based on your income for the tax year. The money collected goes toward paying for things like education, health care and other services.
In Canada, you must file taxes if you lived and worked in Canada the previous year.
No matter your income level, if you don’t file your taxes, you will be unable to access various tax credits and benefits. For instance, you won’t be able to take advantage of the Canada child benefit or the GST/HST benefit if you don’t file your federal income tax.
You should also file your taxes if:
- You are splitting pension income with your spouse or common-law partner
- You are required to repay all or part of your employment insurance (EI) benefits, your old age security (OAS) benefits, or your Canada recovery benefit (CRB)
- You have to contribute to the Canada Pension Plan (CPP)
- You have self-employment income or other eligible earnings on which you pay EI premiums
- You have tax credits from things like tuition or investments you want to carry forward to other years
And of course, if the CRA has requested that you file a return, you have to do so.
What are the federal tax brackets in Canada?
Each year, the income tax brackets change. The changes are due to adjustments that account for inflation and other economic factors.
Here are the tax brackets for the 2024 tax year (for taxes due April 30, 2025):
- 15% on the first $55,867 of taxable income
- 20.5% on taxable income over $55,867 up to $111,733
- 26% on taxable income over $111,733 up to $173,205
- 29% on taxable income over $173,205 up to $246,752
- 33% on any taxable income over $246,752
If you made $62,000 in 2024, your federal income tax would look like the following:
- 15% on the first $55,867, or $8,380.05
- 20.5% on the next $6,133, or $1,257.26
The total amount of federal tax payable: $9,637.31
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What are the provincial and territorial tax brackets in Canada?
In Quebec, you must file two separate returns: one for federal tax and one for provincial. In all other provinces and territories the taxes are submitted together.
Here are the provincial and territorial income tax rates for 2024:
Alberta
- 10% for up to $148,269
- 12% for $148,269.01 to $177,922
- 13% for $177,922.01 to $237,230
- 14% for $237,230.01 to $355,845
- 15% for $355,845.01 and up
British Columbia
- 5.06% for $47,937 or less
- 7.7% for $47,937 up to $95,875
- 10.5% for $95,875 up to $110,076
- 12.29% for $110,076 up to $133,664
- 14.7% for $133,664 up to $181,232
- 16.8% for $181,232 up to $252,752
- 20.5% for $252,752 and over
Manitoba
- 10.8% for $47,000 or less
- 12.75% for $47,001 to $100,000
- 17.4% for $100,000 and over
New Brunswick
- 9.4% for $49,958 or less
- 14.00% for $49,958 to $99,916
- 16.00% for $99,916 to $185,064
- 19.5% for $185,064 and over
Newfoundland and Labrador
- 8.7% for $43,198 or less
- 14.5% for $43,199 to $86,395
- 15.8% for $86,396 to $154,244
- 17.8% for $154,245 to $215,943
- 19.8% for $215,944 to $275,870
- 20.8% for $275,871 to $551,739
- 21.3% for $551,740 to $1,103,478
- 21.8% for more than $1,103,478
Northwest Territories
- 5.9% for $50,597 or less
- 8.6% for $50,598 to $101,198
- 12.2% for $101,199 to $164,525
- 14.05% for more than $164,525
Nova Scotia
- 8.79% for up to $29,590
- 14.95% for $29,590 to $59,180
- 16.67% for $59,180 to $93,000
- 17.5% for $93,000 to $150,000
- 21% for $150,000 and over
Nunavut
- 4% for $54,706 or less
- 7% for $54,707 to $109,413
- 9% for $109,413 to $177,881
- 11.5% for over $177,881
Ontario
- 5.05% for $51,446 or less
- 9.15% for $51,447 to $102,894
- 11.16% for $102,895 to $150,000
- 12.16% for $150,001 to $220,000
- 13.16% for more than $220,000
Prince Edward Island
- 9.65% for $33,328 or less
- 13.63% for $33,328 to $64,656
- 16.65% for $64,656 up to $105,000
- 18% for $105,000 up to $140,000
- 18.75 for over $140,000
Quebec
- 14% for $53,255 or less
- 19% for $53,255 to $106,495
- 24% for $106,495 to $129,590
- 25.75% for $129,590 and over
Saskatchewan
- 10.5% for $46,773 or less
- 12.5% for $46,774 to $133,638
- 14.5% for $133,639 and over
Yukon
- 6.4% for $55,867 or less
- 9% for $55,867 up to $111,733
- 10.9% for $111,733 up to $173,205
- 12.8% for $173,205 up to $500,000
- 15% for $500,001 and over
How to reduce your taxes
The less you have to pay in taxes, the more income you get to hold on to.
There are various ways to reduce the amount you might owe. Everything from RRSP contributions to charitable donations to even medical expenses can be deducted.
One deduction that is automatically applied when you file your taxes is the basic non-refundable tax credit, or personal amount.
The basic personal amount for the 2024 tax year is $15,705. Taxpayers are allowed to claim 15% of their non-refundable tax credits.
Every province and territory has their own tax credits. These can be used to reduce the amount of tax that you might owe, or increase the refund you receive. To find out more about the credits available, consult your province or territory’s website.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
