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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