2018 Tax Rates

The Canadian corporate and Canadian and U.S. personal tax rates below are for the year 2018, which are applicable for taxes due in 2019.

2018 Combined Federal and Provincial/Territorial Corporate Tax Rates for a CCPC

 

The following are income tax rates for a Canadian-controlled private corporation. Some province’s small business income thresholds vary.

Province or Territory Small Business Income up to $500,000 Active Business Income Investment Income
Alberta 12.0% 27.0% 50.7%
British Columbia 12.0% 27.0% 50.7%
Manitoba 10.0/22.0% 27.0% 50.7%
New Brunswick 13.0/12.5% 29.0% 52.7%
Newfoundland and Labrador 13.0% 30.0% 53.7%
Northwest Territories 14.0% 26.5% 50.2%
Nova Scotia 13.0% 31.0% 54.7%
Nunavut 14.0% 27.0% 50.7%
Ontario 13.5% 26.5% 50.2%
Prince Edward Island 14.5% 31.0% 54.7%
Quebec 18.0/17.0% 26.5% 50.4%
Saskatchewan 12.0% 17.0/27.0% 50.7%
Yukon 12.0% 27.0% 50.7%

2018 Combined Federal and Provincial Corporate Tax Rates for a General Corporation

 

The following are tax rates for a general corporation operating in Canada.

Province or Territory M&P Income Active Business Income Investment Income
Alberta 27.0% 27.0% 27.0%
British Columbia 27.0% 27.0% 27.0%
Manitoba 27.0% 27.0% 27.0%
New Brunswick 29.0% 29.0% 29.0%
Newfoundland and Labrador 30.0% 30.0% 30.0%
Northwest Territories 26.5% 26.5% 26.5%
Nova Scotia 31.0% 31.0% 31.0%
Nunavut 27.0% 27.0% 27.0%
Ontario 25.0% 26.5% 26.5%
Prince Edward Island 31.0% 31.0% 31.0%
Quebec 26.7% 26.7% 26.7%
Saskatchewan 25.0% 27.0% 27.0%
Yukon 17.5% 27.0% 27.0%

2018 Combined Federal and Ontario Personal Tax Rates

This chart can be used to determine your tax requirements for the 2018 year, to be paid in 2019. The rates include provincial surtaxes and reflect the budget proposals up to January 15, 2018. The tax determined by this table should be reduced by applicable federal and provincial tax credits. The basic personal tax credits have already been reflected.

Lower Limit Upper Limit Basic Tax Rate on Excess Eligible Dividend Income Other Dividend Income Capital Gains
$ – to $11,809 $ – 0.00% 0.00% 0.00% 0.00%
$ 11,810 to $15,087 $ – 15.00% 0.00% 5.76% 7.50%
$ 15,088 to $19,819 $ 492 25.10% 0.00% 10.24% 12.55%
$ 19,820 to $42,960 $ 1,680 20.05% 0.00% 8.00% 10.03%
$ 42,961 to $46,605 $ 6,319 24.15% 0.00% 12.76% 12.08%
$ 46,606 to $75,653 $ 7,200 29.65% 7.56% 19.14% 14.83%
$ 75,654 to $85,923 $ 15,812 31.48% 8.92% 21.26% 15.74%
$ 85,924 to $89,133 $ 19,045 33.89% 12.24% 24.06% 16.95%
$ 89,134 to $93,208 $ 20,133 37.91% 17.79% 28.72% 18.95%
$ 93,209 to $144,489 $ 21,678 43.41% 25.38% 35.10% 21.70%
$ 144,490 to $150,000 $ 43,939 46.41% 29.52% 38.58% 23.20%
$ 150,001 to $205,842 $ 46,496 47.97% 31.67% 40.39% 23.98%
$ 205,843 to $220,000 $ 73,284 51.97% 37.19% 45.03% 25.98%
$ 220,001 and up $ 80,642 53.53% 39.34% 46.84% 26.76%

The eligible dividend income rates apply to the actual amount of taxable dividends received from taxable Canadian corporations. The Capital gains income rates apply to the actual amount of the capital gain.

2018 United States Federal Income Tax Brackets & Rates

 

State income taxes are separate from the federal tax laws enforced by the IRS. State taxes are levied by each individual state government and there is no system that encompasses the separate taxes for all 50 states. For this reason, state taxes will vary based on where you live, shop, work, and conduct business.

Rate For Unmarried Individuals, Taxable Income Over For Married Individuals Filing Joint Returns, Taxable Income Over For Heads of Households, Taxable Income Over
10% $0 $0 $0
12% $9,525 $19,050 $13,600
22% $38,700 $77,400 $51,800
24% $82,500 $165,000 $82,500
32% $157,500 $315,000 $157,500
35% $200,000 $400,000 $200,000
37% $500,000 $600,000 $500,000

All of the rates above are exclusive of a number of tax credits which may be applicable and the amount payable may be reduced by the applicable federal and provincial or state tax credits. Please contact Bateman MacKay LLP for any specific questions referring to Canadian or U.S. tax issues.

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