Tax Rate 2008
Tax season is approaching. By now you should have received your income slips from your employer. If you are a business owner, you probably also wants to find out how much tax you will need to pay for all the income you earn in the year 2008. Without going into all the budgets nutty gritty details, I have summarized the tax tables for you. Here are the tax tables for both personal and corporate tax rates. Some of rates here has special case, such as for BC, within the same year in 2008, the corporate tax rate was reduced from 12% to 11% effective on July 1, 2008. These special cases only happen in Provincial level. However the level of fluctuation is of small amount like 1%. Of course this table also does not take in account of all the personal tax credits and tax benefits as well. The following table should gives you a ball park on how much tax you need to pay. If you want more details information, please go to the end of the articles and click on the references links.
Personal Income Tax Rates
Federal Tax
15% on the first $37,885
22% on the next $37,884 (income from $37,885 to $75,769)
26% on the next $47,415 (income from $75,769 to $123,184)
29% on over $123,184
Provincial / Territorial Tax
| Newfoundland and Labrador | 8.2% on the first $30,215 13.3% on the next $30,214 (income from $30,216 to $60,429) 16% on over $60,429 |
| Prince Edward Island |
9.8% on the first $31,984 13.8% on the next $31,985 (income from $31,985 to $63,969) 16.7% on over $63,969 |
| Nova Scotia | 8.79% on the first $29,590 14.95% on the next $29,590 (income $29,591 to $59,180) 16.67% on the next $33,820 (income $59,182 to $93,000) 17.5% on over $93,000 |
| New Brunswick | 10.12% on the first $34,836 15.48% on the next $34,837 (income from $34,837 to 69,673) 16.8% on the next $43,600 (income from $69,674 to $113,273) 17.95% on over $113,273 |
| Quebec | 16% on the first $37,500 20% on the next $37,500 (income from $37,501 – 75,000) 24% on over $75,000 |
| Ontario | 6.05% on the first $36,020 9.15% on the next $36,021 (income from $36,021 to $72,041) 11.16% on over $72,041 |
| Manitoba | 10.9% on the first $30,544 12.75% on the next $35,456 (income from $30,545 to $66,000) 17.4% on over $66,000 |
| Saskatchewan | 11% on the first $39,135 13% on the next $72,679 (income from $39,136 to $111,814) 15% on over $111,814 |
| Alberta | 10% |
| British Columbia | 5.06% on the first $35,016 7.7% on the next $35,017 (income from $35,017 to $70,033) 10.5% on the next $10,373 (income from $70,034 to $80,406) 12.29% on the next $17,230 (income from $80,407 to $97,636) 14.7% on over $97,636 |
| Yukon | 7.04% on the first $37,885 9.68% on the next $37,884 (income from $37,886 to $75,769) 11.44% on the next $47,415 (income from $75,769 to $ 123,184) 12.76% on over $123,184 |
| Northwest Territories | 5.9% on the first $35,986 8.6% on the next $35,987 (income from $35,987 to $71,973) 12.2% on the next $45,038 (income from $71,974 to $117,011) 14.05% on over $117,011 |
| Nunavut | 4% on the first $37,885 7% on the next $37,884 (income from $37,886 to $75,769) 9% on the next $47,415 (income from $75,769 to $123,184) 11.5% on over $123,184 |
Corporate Income Tax Rate
Federal Tax
| Small Business Deduction (Revenue less than $400,000) |
12% before Jan 1, 2008 11% from Jan 1, 2008 |
| Non-Small Business Deduction | 21% before Jan 1, 2008 19.5% from Jan 1, 2008 |
Provincial / Territorial Tax
| Small Business | Non-small business | Limit for Small Business Deduction | |
| Newfoundland and Labrador | 5% | 14% | $400,000 |
| Nova Scotia | 5% | 16% | $400,000 |
| PEI | 3.2% | 16% | $400,000 |
| New Brunswick | 5% | 13% | $400,000 |
| Ontario | 5.5% | 14% | $500,000 |
| Manitoba | 1% | 13% | $400,000 |
| Saskatchewan | 4.5% | 12% | $450,000 |
| BC | 2.5% | 11% | $400,000 |
| Yukon | 4% | 15% | $400,000 |
| Northwest Territories | 4% | 11.5% | $400,000 |
| Nunavut | 4% | 12% | $400,000 |
| Quebec | 8% | 11.4% | $400,000 |
| Alberta | 3% | 10% | $430,000 |
References:
What are the income tax rates in Canada for 2008? – http://www.cra-arc.gc.ca/tx/ndvdls/fq/2008_rt-eng.html
Corporate tax rates – http://www.cra-arc.gc.ca/tx/bsnss/tpcs/crprtns/rts-eng.html
Income Tax Return TP-1-V – http://www.revenu.gouv.qc.ca/eng/formulaires/tp/tp-1-v.asp
BC – Budget 2009 – Income Taxes – http://www.sbr.gov.bc.ca/msbr/budget/income_taxes.htm
Calculation of the Income Tax of a Corporation CO-771-T - http://www.revenu.gouv.qc.ca/documents/eng/formulaires/co/co-771-t(2008-12).pdf
Alberta Corporate Income Tax – http://www.finance.alberta.ca/publications/tax_rebates/important_dates_corporate.html
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