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Combined Top Marginal Tax Rates For Individuals
1
—2013
Notes
(1) The combined top marginal tax rate is the rate an individual will pay on income that falls
into the top federal tax bracket. For provinces that have a top bracket above the top federal
tax bracket, a second rate has been included in the table. Individuals taxable on income in
excess of $150,000 in Nova Scotia, or on income above $509,000 in Ontario should use
this higher rate.
(2) The federal gross-up on non-eligible dividends paid after 2013 will decrease to 18% (from
25%) and the corresponding dividend tax credit will decrease to 11% (from 13.33%).
Accordingly, the federal effective tax rate on non-eligible dividends paid after 2013 will
increase.
(3) British Columbia will introduce a new, two-year temporary sixth tax bracket starting
January 1, 2014 for individuals earning more than $150,000 in a taxation year. The
proposed bracket will have a tax rate of 16.80%.
(4) Manitoba’s provincial dividend tax credit rate will decrease from 1.75% to 0.83% beginning
in 2014. This decrease will effectively result in the same amount of provincial tax payable
on non-eligible dividend income earned before and after the federal change.
(5) 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.
(6) Prince Edward Island increased its dividend tax credit rate on non-eligible dividends to
2.9% (from 1%) of the taxable amount of the dividend effective January 1, 2013.
Interest and
Regular Income
Capital
Gains
Eligible
Dividends
Non-eligible
2
Dividends
British Columbia
3
43.70%
21.85%
25.78%
33.71%
Alberta
39.00
19.50
19.29
27.71
Saskatchewan
44.00
22.00
24.81
33.33
Manitoba
4
46.40
23.20
32.27
39.15
Ontario
46.41/49.53
23.21/24.77
29.54/33.85
32.57/36.47
Québec
49.97
24.99
35.22
38.54
New Brunswick
5
45.08
22.54
24.92
33.06
Nova Scotia
46.50/50.00
23.25/25.00
31.23/36.06
31.83/36.21
P.E.I.
6
47.37
23.69
28.71
38.56
Newfoundland and
Labrador
42.30
21.15
22.47
29.96
Yukon
42.40
21.20
15.93
30.41
Northwest Territories
43.05
21.53
22.81
29.65
Nunavut
40.50
20.25
27.56
28.96
© 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