How to identify your income tax bracket.

In Canada, there are set income tax brackets to ensure someone making an annual salary of $40,000 doesn’t pay the same amount in taxes as someone earning $200,000 a year. Knowing your annual salary is a good start to identifying which tax bracket you fall under.

Federal tax rates for 2024.

We all get taxed based on our income every year. Here’s a handy list to help you identify your income tax bracket and the rate at which your income will be taxed for 2024.

• The portion of taxable income up to $55,867 is taxed at a rate of 15%
• The portion of taxable income between $55,867 and $111,733 is taxed at 20.5%
• The portion of taxable income between $111,733 and $173,205 is taxed at 26%
• The portion of taxable income between $173,205 and $246,752 is taxed at 29%
• The portion of taxable income over $246,752 is taxed at 33%

Provincial tax rates for 2024.

Provincial tax rates are calculated the same way as federal tax (except for Quebec). Find your province and the corresponding tax rates for 2024 in the chart below.

Alberta

• 10% on the first $148,269 of taxable income, +
• 12% on the next $29,653, +
• 13% on the next $59,308, +
• 14% on the next $118,615, +
• 15% on the amount over $355,845

British Columbia

• 5.06% on the first $47,937 of taxable income, +
• 7.7% on the next $47,938, +
• 10.5% on the next $14,201, +
• 12.29% on the next $23,588, +
• 14.7% on the next $47,568, +
• 16.8% on the next $71,520
• 20.5% on the amount over $252,752

Manitoba

• 10.8% on the first $47,000 of taxable income, +
• 12.75% on the next $53,000, +
• 17.4% on the amount over $100,000

New Brunswick

• 9.4% on the first $49,958 of taxable income, +
• 14% on the next $49,958, +
• 16% on the next $85,148, +
• 19.5% on the amount over $185,064

Newfoundland and Labrador

• 8.7% on the first $43,198 of taxable income, +
• 14.5% on the next $43,197, +
• 15.8% on the next $67,849, +
• 17.8% on the next $61,699, +
• 19.8% on the next $59,927, +
• 20.8% on the next $275,869, +
• 21.3% on the next $551,739, +
• 21.8% on the amount over $1,103,478

Northwest Territories

• 5.9% on the first $50,597 of taxable income, +
• 8.6% on the next $50,601, +
• 12.2% on the next $63,327, +
• 14.05% on the amount over $164,525

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

Nunavut

• 4% on the first $53,268 of taxable income, +
• 7% on the next $53,269, +
• 9% on the next $66,668, +
• 11.5% on the amount over $173,205

Ontario

• 5.05% on the first $51,446 of taxable income, +
• 9.15% on the next $51,448, +
• 11.16% on the next $47,106, +
• 12.16% on the next $70,000, +
• 13.16 % on the amount over $220,000

Prince Edward Island

• 9.65% on the first $32,656 of taxable income, +
• 13.63% on the next $31,657, +
• 16.65% on the next $40,687, +
• 18% on the next $35,000, +
• 18.75% on the amount over $140,000

Quebec

• For Quebec tax rates, visit Revenue Quebec

Saskatchewan

• 10.5% on the first $52,057 of taxable income, +
• 12.5% on the next $96,677, +
• 14.5% on the amount over $148,734

Yukon

• 6.4% on the first $55,867 of taxable income, +
• 9% on the next $55,866, +
• 10.9% on the next $61,472, +
• 12.8% on the next $326,795, +
• 15% on the amount over $500,000

You should now have a better idea of your income tax bracket, but did you know that more than just your salary can affect which bracket you are lumped into?

Changes to your income tax bracket.

• Promotions: The most common change to your income tax bracket is a salary adjustment. You got that raise you deserve – cue the celebrations! But be sure to familiarize yourself with your new income tax bracket. If you were making $55,000 and you are now making $60,000, any income you make over $55,867 will now be taxed at a rate of 20.5%.
• Terminations: If you received termination pay for being let go from your position, this will count towards your income and could potentially put you into a new bracket. Add your termination pay to your annual income to find out which bracket you belong in.
• Employee benefits: Some employee benefits are taxable and add to your overall income. Benefits such as prizes and awards, holiday trips, bonuses, parking spaces and personal use of an employer’s automobile are likely taxable. However, most of the time, this income won’t be substantial enough to move you into a new bracket.
• Employee stock options: If you purchased shares in your company at a lower price than their fair market value, this difference will be included in your income as a taxable benefit. Depending on how much stock you purchased, this could add up and affect your tax bracket.

Knowing what contributes to your income and your income tax bracket is important, so there are no surprises when your T4 arrives in the mail.

A Tax Expert at H&R Block can help you determine your income tax bracket and factors that could affect it.