Federal and Provincial/Territorial Income Tax Rates and Brackets for 2013 and 2014  /  5

(7) Québec indexes its tax brackets using the same formula as that used federally, but 

uses the provincial inflation rate, excluding changes in liquor and tobacco taxes, 

rather than the federal rate in the calculation. The province’s inflation factor is 2.48% 

for 2013. Québec introduced a new fourth tax bracket to tax individuals earning more 

than $100,000 in 2013 at a tax rate of 25.75%. Residents of Québec are required to 

pay a health contribution and to make payments to the province’s Health Services 

Fund (see the table “Provincial Health Premiums”).

(8) New Brunswick’s tax rates for the first, second, third and fourth tax bracket 

thresholds will increase to 9.68% (from 9.10%), to 14.82% (from 12.10%), to 16.52% 

(from 12.40%) and to 17.84% (from 14.30%) effective July 1, 2013. As a result, 

because of the July 1, 2013 effective date one-half of these rate increases take effect 

for 2013 as shown in the table. The rates in brackets are the rates for 2014.

(9) Nova Scotia created a new personal income tax bracket for taxable income in excess 

of $150,000 effective January 1, 2010. The new bracket was intended to expire 

once the province’s budget was balanced. The 2013 Nova Scotia budget announced, 

however, that despite the budget being balanced, the top tax bracket threshold and 

marginal rate ($150,000 and 21%, respectively) will continue to remain in place.

(10) Newfoundland and Labrador indexes its tax brackets using the same formula as that 

used federally, but uses the applicable provincial inflation rate rather than the federal 

rate in the calculation. Newfoundland and Labrador’s inflation factor is 2.6% for 2013.

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Current as of September 30, 2013