| Chargeable Income ($) |
Tax Rate |
| 0 to 45,282 | 15% |
| 45,282 to 90,563 | 20.5 |
| 90,563 to 140,388 | 26% |
| 140,388 to 200,000 | 29% |
| 200,000 and over | 33% |
Tax for all provinces (except Quebec) and
territories is calculated the same way as federal
tax.
Form 428 is used to calculate this provincial or
territorial tax. Provincial or territorial specific
non-refundable tax credits are also calculated on
Form 428.
| Provinces/territories |
Tax Rate |
| Newfoundland and Labrador | 8.2% on the
first $35,148 of taxable income, + 13.5% on the next $35,147, + 14.55% on the next $55,205, + 15.8% on the next $50,200, + 16.8% on the amount over $175,700 |
| Prince Edward Island |
9.8% on the first $31,984 of taxable income, + |
| Nova Scotia | 8.79% on
the first $29,590 of taxable income, + 14.95% on the next $29,590, + 16.67% on the next $33,820, + 17.5% on the next $57,000, + 21% on the amount over $150,000 |
| New Brunswick | 9.68% on
the first $40,492 of taxable income, + 14.82% on the next $40,493, + 16.52% on the next $50,679, + 17.84% on the next $18,336, + 20.3% on the amount over $150,000 |
| Ontario | 5.05% on
the first $41,536 of taxable income, + 9.15% on the next $41,539, + 11.16% on the next $66,925, + 12.16% on the next $70,000, + 13.16 % on the amount over $220,000 |
| Manitoba | 10.8% on
the first $31,000 of taxable income, + 12.75% on the next $36,000, + 17.4% on the amount over $67,000 |
| Saskatchewan | 11% on the
first $44,601 of taxable income, + 13% on the next $82,829, + 15% on the amount over $127,430 |
| Alberta | 10% on the
first $125,000 of taxable income, + 12% on the next $25,000, + 13% on the next $50,000, + 14% on the next $100,000, + 15% on the amount over $300,000 |
| British Columbia | 5.06% on
the first $38,210 of taxable income, + 7.7% on the next $38,211, + 10.5% on the next $11,320, + 12.29% on the next $18,802, + 14.7% on the amount over $106,543 |
| Yukon | 6.4% on the
first $45,282 of taxable income, + 9% on the next $45,281, + 10.9% on the next $49,825, + 12.8% on the next $359,612, + 15% on the amount over $500,000 |
| Northwest Territories | 5.9% on the
first $41,011 of taxable income, + 8.6% on the next $41,013, + 12.2% on the next $51,329, + 14.05% on the amount over $133,353 |
| Nunavut | 4% on the
first $43,176 of taxable income, + 7% on the next $43,175, + 9% on the next $54,037, + 11.5% on the amount over $140,388 |
| Taxable Income ($) |
Tax Rate |
| 0 to 42,390 | 16% |
| 42,390 to 84,780 | 20% |
| 84,780 to 103,150 | 24% |
| More than 103,150 | 25.75% |
| Chargeable Income (CAD$) |
Tax Rate |
| 0 to 44,701 | 15% |
| 44,701 to 89,401 | 22% |
| 89,401 to 138,586 | 26% |
| Above 138,586 | 29% |
| Taxable Income ($) |
Tax Rate |
| 0 to 41,395 | 16% |
| 41,395 to 83,865 | 20% |
| 83,865 to 102,040 | 24% |
| More than 102,040 | 25.75% |
Lowest Individual Tax Rate is 15% and Highest Rate is 29%
| Chargeable Income (CAD$) |
Tax Rate |
| 0 to 43,953 | 15% |
| 43,954 to 87,907 | 22% |
| 87,908 to 136,270 | 26% |
| Above 136,270 | 29% |
Note - The maximum tax is subject to the 15% standard rate for income without personal deductions and credits.
The Canadian federal corporate tax in 2014 is 15%.
In the province of Ontario the corporate minimum tax regime
applies.
Capital gains for companies and individuals are taxed at the general rates on 50% of the gain.
Losses
A business loss can be carried forward for 20 years and back
for three years.
Canada Depreciation
Fixed assets are generally depreciated on the declining
balance method.
Rates are 10% for certain buildings, 30% for heavy construction
equipment and 20% for cars and machinery.
Canada Transfer Pricing
Transfer between a non arm's length nonresident should be at
the same price as when dealing with arm's length side. Companies
must keep documents and file reports regarding such
transactions.
Canada Thin Capitalization
Interest paid for a loan from a related nonresident to a
Canadian company is deductible only if the loan to equity ratio
does not exceed 1.5:1 ratio.
Canada Consolidated Returns
Consolidated returns are not allowed in Canada. Each company
has to file separately.