The table below is sorted using the marginal tax rate for other income. The marginal tax rate differs from the average tax rate, which is always lower thanthe marginal tax rate. The marginal tax rate is the rate of tax on thenext dollar of income. The average taxrate is total income tax divided by total income.
There are only 2 provinces (AB and SK) with a top marginal tax rate less than 50% for other income.
The province with the lowest top marginal tax rate is SK, but the territoriesof NU and NT are lower. The followingtable shows the top marginal tax rates in 2023 by province and territory.
BC has the lowest average tax rate for $100,000 of other income for theprovinces, followed by ON and then AB.
The 2023 rates that differ from 2022 rates for other income, eligibledividends and non-eligibledividends are shaded in gray. The only change in the top rates for"other income" is NB, because they dropped 1 tax bracket and loweredtheir highest tax rate. The average rate for other income is alwaysslightly less in the current year than the prior year due to indexation, unlesstax rates change.
The table also shows the average taxrate for a taxpayer earning $100,000 of "other income", determinedusing the CanadianTax and RRSP Savings Calculator.
The taxrates used are as known on June 8, 2023.
TaxTips.ca
2023 Top Marginal Tax Rates by Province/Territory |
| Top Rate | Avg Rate
@$100K
Other Inc |
Province/
Territory | Other
Income | Eligible
Dividends | Non-Eligible
Dividends |
| NL | 54.80% | 46.20% | 48.96% | 26.73% |
| NS | 54.00% | 41.58% | 48.28% | 28.46% |
| ON | 53.53% | 39.34% | 47.74% | 22.88% |
| BC | 53.50% | 36.54% | 48.89% | 21.45% |
| QC | 53.31% | 40.10% | 48.70% | 28.29% |
| NB | 52.50% | 32.40% | 46.83% | 26.04% |
| PE | 51.37% | 34.22% | 47.05% | 27.63% |
| MB | 50.40% | 37.78% | 46.67% | 26.67% |
| AB | 48.00% | 34.31% | 42.31% | 23.22% |
| YT | 48.00% | 28.93% | 44.04% | 21.97% |
| SK | 47.50% | 29.64% | 41.82% | 24.97% |
| NT | 47.05% | 28.33% | 36.82% | 20.81% |
| NU | 44.50% | 33.08% | 37.79% | 18.57% |
Top rates for capital gains are 50% of the top rates for "otherincome".
What is Other Income?
Other incomeincludes interest, foreign dividends, employment income, etc. However, the taxrates above do not include CPP or EI costs, deductions or tax credits.Ontario Health Premium isincluded, as are Quebec health premiums. NT and NU include refundable cost ofliving credits.
How is the Average Tax Rate Calculated?
The average tax rates above are calculated using the DetailedCanadian Tax Calculators, which uses total income taxes divided byincome.
Check Out the Marginal and Average Tax Rates Yourself!
You can check out marginal and average tax rates at varying levels of capitalgains, eligible and non-eligible dividends, and other income using our BasicCanadian Tax Calculator. It provides these rates plus a comparison oftaxes payable by province/territory for the current year and past 5 years.You can also compare 2 different scenarios - change the province, the taxyear, or just the amounts of each type of income to see the difference intaxable income and taxes payable.
You can also see the marginal tax rates for all income brackets for yourprovince or territory in our Tax Rate Tables.
2023 Tax Comparisons
Compare provinces and territories at different levels of income.
2023 TaxComparisons Employment Income
BC, ON, and AB are again the lowest tax provinces for a singleperson earning $80,000. See also comparisons for a single incomefamily with 2 children.
2023 TaxComparisons Eligible and Non-Eligible Dividends vs Interest
Taxes paid at varying levels of eligible and non-eligible dividendsand interest for all provinces and territories. The lowest-tax provincesfor $70K of eligible dividends are AB and BC.
2022Seniors Tax Comparisons Eligible Dividends vs Interest
Compare taxes paid in each province/territory by a senior with eligibledividends vs other income (foreign dividends, interest, etc.) - see how thetaxes (including OAS clawback) are significantly lower with eligible dividends.BC is the lowest tax province in these analyses.
Revised: October 26, 2023
FAQs
Which Canadian province has the highest income tax rate? Quebec has the highest income tax rate out of all the provinces and territories. Quebec is Canada's second most populated province, with a population of about 8.5 million, and French is the predominantly spoken language.
Which is highest tax paying province in Canada? ›
Which Canadian province has the highest income tax rate? Quebec has the highest income tax rate out of all the provinces and territories. Quebec is Canada's second most populated province, with a population of about 8.5 million, and French is the predominantly spoken language.
What is the highest marginal tax rate in Canada? ›
If you earn more than $235,675 in taxable income in 2023, the portion over that amount is taxed at the federal rate of 33%. This is called the “top tax bracket”.
Which province in Canada has the highest property taxes? ›
What Is the Highest Property Tax Rate in Canada? According to our research, cross-referenced with various other sources, Winnipeg has the highest property tax rate in Canada at 2.64%.
Are taxes higher in Canada or USA? ›
The IRS taxes the richest Americans at 37%, whereas the top federal tax rate in Canada is 33%. Wealthy Americans have access to many tax deductions that Canada's Alternative Minimum Tax does not allow.
Is Canada the highest taxed country in the world? ›
Canada ranked 23rd¹ out of 38 OECD countries in terms of the tax-to-GDP ratio in 2022. In 2022, Canada had a tax-to- GDP ratio of 33.2% compared with the OECD average of 34.0%. In 2021, Canada was also ranked 23rd out of the 38 OECD countries in terms of the tax-to-GDP ratio. 1.
What is the tax rate per province in Canada? ›
The current rates are: 5% (GST) in Alberta, British Columbia, Manitoba, Northwest Territories, Nunavut, Quebec, Saskatchewan, and Yukon. 13% (HST) in Ontario. 15% (HST) in New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island.
What is the highest Ontario marginal tax rate? ›
What is Ontario's marginal tax rate? The tax rates in Ontario range from 5.05% to 13.16% of income and the combined federal and provincial tax rate is between 20.05% and 53.53%.
What are the marginal tax rates in Canada? ›
Income Tax Act s. 117, 117.1, 121
| TaxTips.ca - Canadian Tax Rates - Federal |
|---|
| 2024 Taxable Income(1) | Canada 2024 Marginal Tax Rates | Canada 2023 Marginal Tax Rates |
|---|
| first $55,867 | 15.00% | 7.50% |
| over $55,867 up to $111,733 | 20.50% | 10.25% |
| over $111,733 up to $173,205 | 26.00% | 13.00% |
9 more rowsJan 23, 2024
What is Alberta's marginal tax rate? The tax rates in Alberta range from 10% to 15% of income and the combined federal and provincial tax rate is between 25% and 48%.
More than 50,000 people living in Newfoundland and Labrador aren't paying anything in property taxes, because of a municipal system that lets unincorporated places grow to sizes that exceed actual towns. Port de Grave is one of about 300 communities in the province where people are living tax-free.
Which city in Canada has the lowest property taxes? ›
Which city has lowest income tax in Canada? ›
The Top 100
| Rank | City | Province |
|---|
| 1 | West Nipissing | ON |
| 2 | Elliot Lake | ON |
| 3 | Hawkesbury | ON |
| 4 | Perth East | ON |
72 more rowsJul 31, 2018
Interestingly, New York State and California tax their residents at rates that are higher than any Canadian province except Quebec. Your overall tax burden in New York and Los Angeles would be 28.5 per cent and 29 per cent, respectively.
Are taxes cheaper in the US or Canada? ›
The United States is a larger global superpower and as such, Americans can expect to pay more in nearly every aspect of living. People in the U.S. and Canada generally have similar annual incomes. However, taxes are reportedly lower in the U.S., which can offer Americans a slight take-home pay advantage.
What is the most taxed country in the world? ›
1. Ivory Coast. The country with beach resorts, rainforests, and a French-colonial legacy levies a massive 60% personal income tax – the highest in the world.
Which city has the highest taxes in Canada? ›
Ranking
| Ranking | Location | Annual Property Taxes |
|---|
| 1 | Winnipeg, MB | $9,166.08 |
| 2 | Sault Ste-Marie, ON | $6,000.89 |
| 3 | Charlottetown, PEI | $6,447.52 |
Aug 22, 2023
Every province except Alberta has implemented either a provincial sales tax or the Harmonized Sales Tax. The federal GST rate is 5 percent, effective January 1, 2008. The territories of Yukon, Northwest Territories, and Nunavut have no territorial sales taxes, so only the GST is collected.
Which Canadian province has the lowest provincial tax? ›
The 3 Canadian territories and the province of Alberta have the lowest income tax rates in Canada. Quebec and the provinces of Atlantic Canada have the highest income tax rates in Canada.
