Tax Rates

Personal Tax Rates

Combined Federal and Personal Tax Rates for 2021 (British Columbia)

Income Salary/Interest Capital Gains Eligible Dividends Regular Dividends
Up to $11,070 0.00% 0.00% 0.00% 0.00%
$11,070 – $13,808 5.06% 2.53% 0.00% 0.00%
$13,808 – $42,184 20.06% 10.03% -9.60% 10.43%
$42,184 – $49,020 22.70% 11.35% -5.96% 13.47%
$49,020 – $84,369 28.20% 14.10% 1.63% 19.80%
$84,369 – $96,866 31.00% 15.50% 5.49% 23.02%
$96,866 – $98,040 32.79% 16.40% 7.96% 25.07%
$98,040 – $117,623 38.29% 19.15% 15.55% 31.40%
$117,623 – $151,978 40.70% 20.35% 18.88% 34.17%
$151,978 – $159,483 * 44.02% 22.01% 23.46% 37.99%
$159,483 – $216,511 * 46.12% 23.06% 26.36% 40.41%
$216,511 – $222,420 49.80% 24.90% 31.44% 44.64%
$222,420+ 53.50% 26.75% 36.54% 48.89%
* Starting at incomes of $151,978 the personal amount tax credit of $13,808 is decreased to $12,421 at incomes of $216,511. The above table does not reflect this reduction in the basic personal amount.


The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.

Corporate Taxes

Corporate Tax Rates For Canadian Controlled Private Corporations

Year Small Business Rate Active Income Rate Investment**

2017

Up to $500,000

13% or 12.50%***

Over $500,000

26.00%***

49.67%
2018 Up to $500,000 12% Over $500,000 27.00% 50.67%
2019 Up to $500,000 11% Over $500,000 27.00% 50.67%
2020 Up to $500,000 11% Over $500,000 27.00% 50.67%
2021**** Up to $500,000 11% Over $500,000 27.00% 50.67%

*** The provincial rate for small business income was reduced from 2.5% to 2% effective April 1, 2017.
**** The 2021 rate reflects the rate that had been substantively enacted as of December 31, 2020

The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.

Corporate and Personal Tax Analysis for 2021

Active Business Income

Small Business Income <500k >500k Investment Income
Income in Corp 1,000.00 1,000.00 1,000.00
Corporate Tax (110.00) (270.00) (506.70)
Dividend Refund 306.70
Available for Dividend 890.00 730.00 800.00
Personal Taxes * (435.12) (266.74) (391.12)
Net After-Tax Cash 454.88 463.26 408.88
Income Earned Directly 1,000.00 1,000.00 1,000.00
Personal Taxes (535.00) (535.00) (535.00)
Net After-Tax Cash 465.00 465.00 465.00
Deferral of Taxes 425.00 265.00 28.30
Deferral of Tax as % of Income 42.50% 26.50% 2.83%
Savings (Cost) (10.12) (1.74) (56.12)
Corporate Rates
Tax on Income <500k 11.0%
Tax on Income >500k 27.0%
Tax on Investment Income 50.67%
Income Earned Directly Taxed at the Top Marginal Tax Rates as Follows:
Eligible Dividends 36.54%
Ineligible Dividends 48.89%
Salaries/Interest 53.50%

* Assumes individual shareholder in top marginal tax bracket.
* * Based on 2021 Rates

The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.

CPP & EI

CPP Contribution Rates for 2021

Maximum annual pensionable earnings Basic exemption amount Maximum contributory earnings Employee and employer contribution rate (%) Maximum annual employee and employer contribution
$61,600 $3,500 $58,100 5.45% $3,166.45

EI Contribution Rates for 2021

Maximum annual insurable earnings Rate (%) Maximum annual employee premium Maximum annual employer premium
$56,300 1.58% $889.54 $1,245.36

The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.