4  /

Notes

(1) The federal tax brackets are indexed each year by a calculated inflation factor, which is 

based on the change in the average federal inflation rate over the 12-month period  ending 

September 30 of the previous year compared to the change in the rate for the same period 

of the year prior to that. The federal inflation factor is 2% for 2013.

(2) British Columbia indexes its tax brackets using the same formula as that used federally, 

but uses the provincial inflation rate rather than the federal rate in the calculation. The 

province’s inflation factor is 1.5% for 2013. Residents of British Columbia are also required 

to make monthly payments under the province’s Medical Services Plan (see the table 

“Provincial Health Premiums”).

(3) British Columbia will introduce a new temporary sixth bracket starting January 1, 2014 for 

individuals earning more than $150,000 in a taxation year.  The new bracket will have a tax 

rate of 16.80%.  This two-year temporary measure will expire December 31, 2015.

(4) Saskatchewan, New Brunswick and the territories (Northwest Territories, Nunavut and the 

Yukon) index their tax brackets using the same formula as that used federally. The inflation 

factor is 2% for 2013.

(5) Manitoba, Nova Scotia and Prince Edward Island do not index their tax brackets or surtax 

thresholds. 

(6) Ontario indexes its tax brackets and surtax thresholds using the same formula as that used 

federally, but uses the provincial inflation rate rather than the federal rate in the calculation. 

The province’s inflation factor is 1.8% for 2013. Ontario resident individuals with taxable 

income over $20,000 are also required to pay a Health Premium each year (see the table 

“Provincial Health Premiums”).

Federal and Provincial/Territorial Income Tax Rates 

and Brackets for 2013 and 2014

© 2013 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms

affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Current as of September 30, 2013