A Simple Calculation Of Canadian Federal Income Tax for 2007

Federal Personal Income Tax Rates in Canada fornext $29,886, + 17.26% on the amount over
2007 are 15% on the first $37,178 of taxable$59,772.
income, + 22% on the next $37,179 + 26% on2) Prince Edward Island : 9.64% on the first
the amount over $46,530 + 29 % on any taxable$29,886 of taxable income, +14.98% on the next
income above $ 120,887. So there are four slabs$29,886, +17.26% on the amount over $59,772
of income for tax purposes.3) Nova Scotia : 8.79% on the first $29,590 of
1) For taxable income below $37,178: Tax ratetaxable income, +14.95% on the next $29,590,
for this group is 15%. So if someone's earning is+16.67% on the next $33,820 +17.5% on the
falling in this group then tax payable will be 15%amount over $93,000
of the taxable income i.e. 0.15*taxable income.4) New Brunswick: 10.12% on the first $34,186 of
2) For taxable income from $37,178 to $ 74,357:taxable income, +15.48% on the next $34,188,
In this case there will be two rates. For first+16.8% on the next $42,787, +17.95% on the
$37,178 tax will be @15% i.e. $5,577. For secondamount over $111,161
part one has to deduct $37,178 from total5) Ontario: 6.05% on the first $35,488 of taxable
taxable income and then calculate rest tax partincome, +
by getting 22% of the resulting amount. So,9.15% on the next $35,488, +11.16% on the
Total Tax Payable = $5,577 + $ (Total Taxableamount over $70,976
Income - 37,178) *22/100.6) Manitoba: 10.9% on the first $30,544 of
3) For taxable income from $ 74,357 to $taxable income, +
120,887: In this case tax will be calculated in three13% on the next $34,456, +17.4% on the
parts, first part will result in $5,577, second partamount over $65,000
will be equal to 22% of $ (74,357 - 37,178) i.e. $7) Saskatchewan: 11% on the first $38,405 of
8,179.38. The third part will be equal to 26% oftaxable income, +13% on the next $71,324,
amount in excess of $ 120,887. Therefore,+15% on the amount ver $109,729
Total Tax Payable = $13,756 + $ (Total Taxable8) Alberta: 10% of taxable income
Income - 74,357)*26/100.9) British Columbia: 5.7% on the first $34,397 of
4) For taxable income above $ 120,887: In thistaxable income, + 8.65% on the next $34,397,
case 4 rates will be applicable. For first $37,178+11.1% on the next $10,190, +13% on the next
rate will be 15% resulting in $ 5,577, for next $$16,925, +14.7% on the amount over $95,909
37,179 tax rate will be 22% resulting in $ 8,179,10) Yukon: 7.04% on the first $37,178 of taxable
for next $ 46,530 rate will be 26% resulting inincome, +9.68% on the next $37,179, +11.44%
$12,098 and for rest, the rate will be 29%. Inon the next $46,530, +12.76% on the amount
other words,over $120,887
Total Tax Payable= $ 25,854 + (Total Taxable11) Northwest Territories: 5.9% on the first
Income - 120,887)*29/100.$35,315 of taxable income, +8.6% on the next
Tax of other provinces and territories :$35,316, +12.2% on the next $44,199, +14.05%
Under the current tax on income method, tax foron the amount over $114,830.
all provinces (except Quebec) and territories is12) Nunavut: 4% on the first $37,178 of taxable
calculated the same way as federal tax. A shortincome, + 7% on the next $37,179, + 9% on the
list is given as follows:next $46,530, + 11.5% on the amount over
1) Newfoundland and Labrador : 9.64% on the$120,887.
first $29,886 of taxable income, +14.98% on the