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This works the same when it comes to provincial tax rates. That said, provincial tax brackets are different from federal tax brackets, and they vary from province to province.
When it comes to which provincial tax rates you pay, well, that depends on where you live and where you work. Even if you lived in different provinces throughout the year, you would only pay one tax rate. This is because it’s based on what province you lived in as of December 31. In British Columbia, these income tax brackets are significantly lower than the federal rates; you are required to pay both.
Federal Tax Rates
If you’re looking to determine what your federal marginal tax rate is, you first need to determine your taxable income. Your taxable income is essentially the part of your gross income that is used to determine how much tax you have to pay. It includes all income that you make throughout the year minus tax deductions, tax credits and exemptions. That said, there are certain incomes that aren’t included in taxable income. These include:
- Gifts
- Inheritances
- Lottery winnings
- Most types of strike pay
- Most life insurance policy amounts
- GST payments
- Canada Child Benefits amounts
- Provincial and Territorial child benefit payments
- Funds received if you were a victim of a motor vehicle accident or a crime
- Some government benefits
There are a few more exceptions as well. These can be found on the CRA website.
Once you’ve calculated your taxable income, then you’ll be able to figure out what your marginal tax rate should be. Let’s take a look at what they are as of 2024:
| Taxable Income Amounts | Marginal Tax Rate |
| On the portion of the income from $0 - $55,867 | 15% |
| On the portion of income, that’s $55,867 - $111,733 | 20.5% |
| On the portion of income that’s $111,733 - $173,205 | 26% |
| On the portion of income that’s $173,205 - $246,752 | 29% |
| On the portion of income, that’s $246,752 plus | 33% |
BC Tax Brackets
If you live in BC, you’ll not only have to pay the federal tax rate, you’ll also have to pay the marginal federal tax rate. Just like the federal rate, British Columbia's income tax rate is based on your total taxable income amount. Let’s take a look at what these rates are as of 2024.
| Taxable Income Amounts | Marginal Tax Rate |
| On the portion of the income from $0 - $47,937 | 5.06% |
| On the portion of income, that’s $47,937- $95,875 | 7.70% |
| On the portion of income that’s $95,875 - $110,076 | 10.5% |
| On the portion of income that’s $110,076 - $133,664 | 12.29% |
| On the portion of income, that’s $133,664 - $181,232 | 14.70% |
| On the portion of income, that’s $181,232 - $252,752 | 16.80% |
| On the portion of income, that’s $252,752 and over | 20.50% |
Total Tax Rates if You Live in BC
As previously mentioned, no matter what province or territory you live in, you will have to pay both the provincial and federal tax rates. In BC, the combined federal and provincial tax rates for 2024 are between 20.06% and 53.5%. Let’s take a look at the breakdown.
| Taxable Income Amounts | Combined Marginal Tax Rate |
| On the portion of the income from $0 - $47,937 | 20.06% |
| On the portion of the income from $47,937 - $55,867 | 22.7% |
| On the portion of the income from $55,867 - $95,875 | 28% |
| On the portion of the income from $95,875 - $110,076 | 31% |
| On the portion of the income from $110,076 - $111, 733 | 32.79% |
| On the portion of the income from $111,733 - $133,664 | 38,29% |
| On the portion of the income from $133,664 - $173,205 | 40.70% |
| On the portion of the income from $173,205 - $181,232 | 44.02% |
| On the portion of the income from $181,232 - $246,752 | 46.12% |
| On the portion of the income from $246,752 - $252,752 | 49.8% |
| On the portion of the income from $252,752 and up | 53.5% |
Tax Rates in BC Compared to Other Provinces/Territories
When we over the provincial marginal tax rates, BC has some of the lowest and most diverse tax rates. Other provinces have wider income margins with higher tax rates, while some do compare closely but not completely to BC.
Let’s take a look at the other provinces and what their rates are.
| Provinces/Territories | Tax Rates |
| Alberta | 10% on the first $148,26912% on the next $29,65613% on the next $59,30814% on the next $118,61515% on amounts over $355,845 |
| Saskatchewan | 10.5% on the first $52,05712.5% on the next $96,67714.5% on amounts over $148,736 |
| Manitoba | 10.8% on the first $47,00012.75% on the next $53,00017.4% on any amount over $100,000 |
| Newfoundland and Labrador | 8.7% on the first $43,91814.5% on the next $43,19715.8% on the next $67,84919,8% on the next $61,69920.8% on the next $275,86921.3% on the next $551,73920.5% on any amount over $1,103,478 |
| Nova Scotia | 8.79% on the first $29,59014.95% on the next $29,59016.67% on the next $33,82017.5% on the next $57,00021% on amounts over $150,000 |
| Prince Edward Island | 9.8% on the first $32,65613,8% on the next $31,65716.7% on the next $40,68718% on the next $35,00018.75% on amounts over $140,000 |
| Ontario | 5.05% on the first $51,4469.15% on the next $51,44811.16% on the next $47,10612.16% on the next $70,00013.16% on amounts over $220,000 |
| Quebec | 15% on the first $51,78020% on the next $51,76524% on the next $22,45525.75% on amounts over $126,000 |
| New Brunswick | 9.68% on the first $49,95814.82% on the next $50,31816% on the next $85,14819.5% on amounts over $185,064 |
| Northwest Territories | 5.9% on the first $50,5978.6% on the next $50,60112.2% on the next $63,32714.05% on amounts over $164,525 |
| Yukon | 6.4% on the first $55,8679% on the next $55,86610.9% on the next $61,47212.8% on the next $253,24815% on amounts over $500,000 |
| Nunavut | 4% on the first $53,2687% on the next $53,2699% on the next $66,66811.5% on amounts over $173,205 |
How Much Tax You Pay in BC by Salary
As you can see, no matter where you live in BC, your marginal tax rate is going to be the same, but it will differ if you live in a different province. With that in mind, everyone’s tax situation is going to look a little bit different. Let’s take a look at how much tax you would pay based on different salaries.
| Taxable Income | How Much Tax You Pay |
| $50,000 | $12,770 |
| $100,000 | $28,076 |
| $150,000 | $47,920 |
BC Corporate Tax Rates 2024
Just like with personal tax rates, corporations have tax rates as well. As of 2024, the corporate tax rate you are subject to is based on whether you’re considered to be a corporation or a small business. For a small business, the provincial tax rate is 2%, and the federal tax rate is 9%, giving you a total of 11%. If you’re considered a corporation, though, the tax rate is considerably higher. The provincial tax rate for a corporation in BC is 12%, while the federal rate is 15%, giving you a total tax rate of 27%.
Other Taxes on Your Income
When it comes to your marginal tax rates, whether they’re federal or provincial, the rates we’ve discussed are for taxable income. However, there are other tax rates for different kinds of income. You may be wondering how you can have income from sources other than taxable income. Well, these amounts are usually considered to be investment income.
Based on the types of investments that you have, there are different tax rates to which these amounts are subject. These types of investment income are:
- Eligible dividends
- Non-eligible dividends
- Capital gains
If you are required to pay a capital gains tax or a Canadian dividends tax, it would be done separately from your taxable income. This is because they have their own individual income tax rates, even though those funds are still considered to be income.
Final Thoughts
Figuring out how much tax you’re required to pay can be kind of tricky. As your income increases, you pay more taxes, so it can gradually change throughout the year and be different from previous years. This is especially the case if you have more than one job. This is why some people choose to up the amount of taxes they have taken off of their cheques, so they don’t get hit with such a steep bill at tax time.
That said, though, looking at the marginal tax rates can give you a good idea of the amount of tax you’ll likely be required to pay on your income tax return and prepare you for it. This is if your employer deducts the taxes for you. If you’re self-employed, either you or your accountant will have to determine how much you should put away in order to cover your annual tax bill and what you can deduct in order to reduce that amount. This includes things like medical expenses, mileage, supplies, or anything else related to your health or business.
It’s important to keep in mind that both the federal and provincial tax rates we’ve mentioned are based on your annual income. You could receive non-taxable income that isn’t included in this and won’t affect your tax amount. Your investment income can also be taxed differently depending on the type of investment income that it is. No matter how you calculate it, though, it’s a good idea to consult a tax professional if you want an accurate idea of what your annual tax bill could be. They can look at your tax information and accurately deduce the amount you’ll be likely to pay.
