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Tax Rates for 2007
When preparing your Income Tax Return; you need to consider several Tax Rates like:
- Federal Tax Rate
- Provincial Tax Rate (also referred to as Territorial Tax Rate)
- Marginal Tax Rate (Federal and Provincial).
These taxes are calculated on your Personal Income Tax Return for all Provinces and Territories -- Quebec is an exception.
Since Tax Rates increase as Taxable Income increases, it is important to try and reduce Taxable Income by proper Tax Planning and Investment.
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Federal Tax Rates for 2007 |
| Slab 1 |
15% on the first $37,178 of taxable income, + |
| Slab 2 |
22% on the next $37,179 of taxable income (on the portion of taxable income between $37,178 and $74,357), + |
| Slab 3 |
26% on the next $46,530 of taxable income (on the portion of taxable income between $74,357 and $120,887), + |
| Slab 4 |
29% of taxable income over $120,887. |
HOW TO CALCULATE FEDERAL TAX AND TAX CREDITS
After calculating income tax amounts; deductions are available in the form of Tax Credits. One important Tax Credit is the Basic Personal Amount available to every Tax Payer. The Federal Basic Personal Amount for 2007 is $9600.
Click here for a list of all Non Refundable Federal Tax Credits.
To Calculate all your Federal Tax and Federal Tax Credits, click here for a handy Calculation Worksheet provided by CRA. Download and print out the pdf file. Complete Step 1 to claim your federal non-refundable tax credits, Step 2 to calculate your federal tax on taxable income and Step 3 to calculate your net federal tax.
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Provincial / Territorial Tax Rates for 2007 |
| Newfoundland and Labrador |
9.64% on the first $29,886 of taxable income, +
14.98% on the next $29,886, +
17.26% on the amount over $59,772 |
| Prince Edward Island |
9.8% on the first $31,369 of taxable income, +
13.8% on the next $31,370, +
16.7% on the amount over $62,739 |
| Nova Scotia |
8.79% on the first $29,590 of taxable income, +
14.95% on the next $29,590, +
16.67% on the next $33,820 +
17.5% on the amount over $93,000 |
| New Brunswick |
10.12% on the first $34,186 of taxable income, +
15.48% on the next $34,188, +
16.8% on the next $42,787, +
17.95% on the amount over $111,161 |
| Ontario |
6.05% on the first $35,488 of taxable income, +
9.15% on the next $35,488, +
11.16% on the amount over $70,976 |
| Manitoba |
10.9% on the first $30,544 of taxable income, +
13% on the next $34,456, +
17.4% on the amount over $65,000 |
| Saskatchewan |
11% on the first $38,405 of taxable income, +
13% on the next $71,324, +
15% on the amount over $109,729 |
| Alberta |
10% of taxable income |
| British Columbia |
5.7% on the first $34,397 of taxable income, +
8.65% on the next $34,397, +
11.1% on the next $10,190, +
13% on the next $16,925, +
14.7% on the amount over $95,909 |
| Yukon |
7.04% on the first $37,178 of taxable income, +
9.68% on the next $37,179, +
11.44% on the next $46,530, +
12.76% on the amount over $120,887 |
| Northwest Territories |
5.9% on the first $35,315 of taxable income, +
8.6% on the next $35,316, +
12.2% on the next $44,199, +
14.05% on the amount over $114,830 |
| Nunavut |
4% on the first $37,178 of taxable income, +
7% on the next $37,179, +
9% on the next $46,530, +
11.5% on the amount over $120,887 |
HOW TO CALCULATE PROVINCIAL/TERRITORIAL TAX AND TAX CREDITS
After calculating income tax amounts; you need to apply the Tax Credits. Provinical/Territorial Tax Credits are available for every Province and Territory. The rates differ from one province/territory to another.
To check and calculate all your Provincial Tax and Provinical Tax Credits, click here.
Select your province/territory to download a handy Calculation Worksheet provided by CRA.
Download and print out the pdf file. Enter the details re Tax Credits that apply to you in the worksheet to calculate your net provincial tax.
FEDERAL AND PROVINCIAL MARGINAL TAX RATES
For a good compilation of Federal & Provincial Marginal Tax Rates, click on the link below to check Tax Rate Tables provided by TaxTips.ca
TAX CREDITS
You can also click on the links below to calculate the Base Amounts and Tax Credits amounts provided by TaxTips.ca
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