Tax Rates
Personal Tax Rates
Combined Federal and Personal Tax Rates for 2023 (British Columbia)
| Income | Salary/Interest | Capital Gains | Eligible Dividends | Regular Dividends |
|---|---|---|---|---|
| Up to $11,981 | 0.00% | 0.00% | -37.29% | -12.64% |
| $11,982 – $15,000 | 5.06% | 2.53% | -30.3% | -6.82% |
| $15,001 – $45,654 | 20.06% | 10.03% | -9.60% | 10.43% |
| $45,655 – $53,359 | 22.70% | 11.35% | -5.96% | 13.47% |
| $53,360 – $91,310 | 28.20% | 14.10% | 1.63% | 19.79% |
| $91,311 – $104,835 | 31.00% | 15.50% | 5.49% | 23.01% |
| $104,836 – $106,717 | 32.79% | 16.40% | 7.96% | 25.07% |
| $106,718 – $127,299 | 38.29% | 19.15% | 15.55% | 31.39% |
| $127,300 – $165,430 | 40.70% | 20.35% | 18.88% | 34.17% |
| $165,431 – $172,602 | 44.02% | 22.01% | 23.45% | 37.98% |
| $172,603 – $235,675 | 46.12% | 23.06% | 26.35% | 40.39% |
| $235,676 – $240,716 | 49.80% | 24.90% | 31.44% | 44.63% |
| $240,717 + | 53.50% | 26.75% | 36.54% | 48.89% |
* Starting at incomes of $165,430 the personal amount tax credit of $15,000 is gradually decreased to $13,521 at incomes of $235,675
https://www.manulifeim.com/retail/ca/en/viewpoints/tax-planning/2023-tax-rate-card-for-canada
https://www.advisor.ca/tax/tax-news/essential-tax-numbers-updated-for-2023/#:~:text=The%2029.0%25%20tax%20rate%20begins,%2453%2C359%20is%20taxed%20at%2015.0%25.
Basic personal amount: The basic personal amount for 2023 is $15,000 for taxpayers with net income of $165,430or less. At income levels above $165,430, the basic personal amount is gradually clawed back until it reaches $13,521 for net income of $235,675. The basic personal amount for 2022 ranges from $12,719 to $14,398.
Corporate Taxes
Corporate Tax Rates For Canadian Controlled Private Corporations
| Year | Small Business | Rate | Active Income | Rate | Investment** |
|---|---|---|---|---|---|
| 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% |
| 2022**** | Up to $500,000 | 11% | Over $500,000 | 27.00% | 50.67% |
| 2023 | Up to $500,000 | 11% | Over $500,000 | 27.00% | 50.67% |
**** The 2022 rate reflects the rate that had been substantively enacted as of December 31, 2021
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 2022
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 2023
| Maximum annual pensionable earnings | Basic exemption amount | Maximum contributory earnings | Employee and employer contribution rate (%) | Maximum annual employee and employer contribution |
|---|---|---|---|---|
| $66,600 | $3,500 | $63,100 | 5.95% | $3,754.45 |
EI Contribution Rates for 2023
| Maximum annual insurable earnings | Rate (%) | Maximum annual employee premium | Maximum annual employer premium |
|---|---|---|---|
| $61,500 | 1.63% | $1,002.45 | $1,403.43 |
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.
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