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Individual Marginal Tax Rates for Capital Gains
1
—2014
Notes
(1) This table applies to capital gains income and includes all federal and provincial taxes and
surtaxes, but does not include provincial health premiums (see the table “Provincial Health
Premiums”). The respective basic personal tax credits are also included in the calculations.
As more than one rate could apply to a particular bracket due to a difference in the federal
and provincial bracket thresholds, the rate indicated in the table is that which applies
to income in approximately the middle range of the bracket. The table assumes that an
individual has regular income that places the individual in the middle of the above tax
brackets before taking the capital gains income into account.
For provinces that have tax brackets above the top federal tax bracket, additional rates
have been included in the table. Individuals taxable on income in excess of $150,000 in
British Columbia and Nova Scotia, or on income between $150,000 and $220,000 or
above $220,000 in Ontario should use these higher rates.
The taxable portion of the capital gain (i.e. 50%) is used to determine which marginal tax
bracket will apply. However, when calculating the tax, apply the marginal rate to the actual
amount of the capital gain (i.e., 100%).
Significant capital gains income in addition to the income in the middle range of the
bracket may attract tax at a rate higher than what is shown. Therefore, for purposes of
estimating taxes applicable to this income, the rate in the next bracket should be used in
order to be conservative.
(2) The 2014 Ontario budget proposed to create a new personal income tax bracket effective
January 1, 2014 for taxable income between $150,000 and $220,000. The budget also
proposed to lower the taxable income threshold for the top tax bracket from $514,090 to
$220,000 effective January 1, 2014 (see the table “Federal and Provincial/Territorial
Income Tax Rates and Brackets for 2014 and 2015”). These rates and brackets may be
subject to change pending the results of the June 12 provincial election.
$11,139
to $43,953
$43,954
to $87,907
$87,908
to $136,270
$136,271
and over
British Columbia
11.63%
14.85%
20.35%
21.85/22.90%
Alberta
12.50
16.00
18.00
19.50
Saskatchewan
13.00
17.50
19.50
22.00
Manitoba
12.90
17.38
21.70
23.20
Ontario
2
10.03
15.58
21.71
23.20/23.98
/24.77
Quebec
14.26
19.19
23.73
24.98
New Brunswick
13.84
18.41
21.26
23.42
Nova Scotia
11.90
19.34
21.75
23.25/25.00
P.E.I.
12.40
19.35
22.19
23.69
Newfoundland
and Labrador
11.35
17.25
19.65
21.15
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