Personal Tax Rates & Calculator

Understanding Canadian personal income tax rates, brackets, and calculations for 2024 tax year.

2024 Federal Tax Brackets

Taxable Income	Federal Tax Rate	Tax on Income
First $55,867	15%	$0 - $8,380
$55,867 - $111,733	20.5%	$8,380 - $19,833
$111,733 - $173,205	26%	$19,833 - $35,816
$173,205 - $246,752	29%	$35,816 - $57,144
Over $246,752	33%	$57,144+

Ontario Combined Marginal Tax Rates

Income Range

First $51,44620.05%
$51,446 - $55,86724.15%
$55,867 - $102,89429.65%
$102,894 - $111,73331.48%
$111,733 - $150,00037.91%
$150,000 - $173,20543.41%
$173,205 - $220,00046.16%
$220,000 - $246,75248.35%
Over $246,75253.53%

Quick Tax Calculator

Estimate your 2024 taxes based on your total income:

$50,000 income~$7,745 tax
Effective rate: 15.5%
$75,000 income~$14,882 tax
Effective rate: 19.8%
$100,000 income~$23,308 tax
Effective rate: 23.3%
$150,000 income~$42,216 tax
Effective rate: 28.1%

Key Considerations

Basic Personal Amount

The first $15,705 of income is tax-free due to the basic personal amount (federal). Ontario provides an additional $12,399 basic personal amount.

This means you won't pay any tax until your income exceeds these thresholds.

Types of Income

• Employment Income: Fully taxable at marginal rates

• Canadian Eligible Dividends: Grossed-up by 38%, but receive dividend tax credit

• Capital Gains: Only 50% taxable (66.67% on gains over $250,000)

• Interest Income: Fully taxable at marginal rates

Important Updates for 2024

• Capital gains inclusion rate increases to 66.67% for gains exceeding $250,000
• TFSA contribution limit increased to $7,000
• First Home Savings Account (FHSA) annual limit: $8,000
• Canada Carbon Rebate varies by province and family size

Tax Planning Strategies

Reduce Taxable Income

• Maximize RRSP contributions
• Claim all eligible deductions
• Consider income splitting with spouse
• Defer bonuses to lower-income years

Maximize Credits

• Track medical expenses carefully
• Bundle charitable donations
• Claim tuition and education credits
• Don't forget moving expenses

Need Personalized Tax Planning?

Every tax situation is unique. Get professional advice tailored to your specific circumstances.

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