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

(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 1.0% for 2014. 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”).

(7) The 2014 Ontario budget announced a new personal income tax bracket effective 

January 1, 2014 for taxable income between $150,000 and $220,000. This new 

bracket has a tax rate of 12.16%. The budget also lowered the taxable income 

threshold for the 13.16% tax rate from $514,090 to $220,000 effective January 1, 

2014. The new income thresholds will not be indexed each year. 

(8) Quebec 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 0.97% 

for 2014. Residents of Quebec are required to pay a health contribution and to make 

payments to the province’s Health Services Fund (see the table “Provincial Health 

Premiums”).

(9) 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 1.5% for 2014.

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Current as of December 31, 2014