Your marginal tax rate is the combined federal and provincial income taxes you pay on all sources of income at tax time. You should calculate your federal income tax first, your provincial rate second, and then add the two together - and presto! Once you know what your taxable income is, you’ll then apply the relevant federal and provincial rates to your net taxable income. In other words, it’s your net income after you’ve claimed all your eligible deductions. Your tax bracket is based on “taxable income”, which is your gross income from all sources, minus any tax deductions you may qualify for. So, if you move from Ontario to Nova Scotia in July, and you find yourself living in Nova Scotia on December 31, you would fall under the Nova Scotia provincial tax rates. Importantly, your provincial rate is determined by the province you are living in on December 31 of the tax year. How much tax you’ll pay is determined by where you live in Canada, and how much income you declare from all sources. 29% on the portion of taxable income over $151,978 up to $216,511 and.26% on the portion of taxable income over $98,040 up to $151,978 and.
20.5% on the portion of taxable income over $49,020 up to $98,040 and.
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