In Canada, the tax system is progressive, meaning that individuals pay higher rates of tax as their income increases. The tax brackets are adjusted annually to account for inflation. For the 2023 tax year, the federal tax bracket rates are as follows:
- 15% on the first $53,359 of taxable income
- 20.5% on taxable income between $53,359 and $106,717
- 26% on taxable income between $106,717 and $165,430
- 29% on taxable income between $165,430 and $235,675
- 33% on any taxable income exceeding $235,675.
In addition to federal tax, each province and territory in Canada has its own tax rates. For example, in Alberta, the tax rates range from 10% to 15%, depending on the income bracket. In British Columbia, the rates range from 5.06% to 20.5% .
Its important to note that these rates are subject to change, and individuals should refer to the most current information from the Canada Revenue Agency or a tax professional for the latest tax bracket rates.
