Tax Rates

Personal Tax Rates

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

IncomeSalary/InterestCapital GainsEligible DividendsRegular Dividends
Up to $11,0700.00%0.00%0.00%0.00%
$11,070 – $13,8085.06%2.53%0.00%0.00%
$13,808 – $42,18420.06%10.03%-9.60%10.43%
$42,184 – $49,02022.70%11.35%-5.96%13.47%
$49,020 – $84,36928.20%14.10%1.63%19.80%
$84,369 – $96,86631.00%15.50%5.49%23.02%
$96,866 – $98,04032.79%16.40%7.96%25.07%
$98,040 – $117,62338.29%19.15%15.55%31.40%
$117,623 – $151,97840.70%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

YearSmall BusinessRateActive IncomeRateInvestment**

2017

Up to $500,000

13% or 12.50%***

Over $500,000

26.00%***

49.67%
2018Up to $500,00012%Over $500,00027.00%50.67%
2019Up to $500,00011%Over $500,00027.00%50.67%
2020Up to $500,00011%Over $500,00027.00%50.67%
2021****Up to $500,00011%Over $500,00027.00%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>500kInvestment Income
Income in Corp1,000.001,000.001,000.00
Corporate Tax(110.00)(270.00)(506.70)
Dividend Refund306.70
Available for Dividend890.00730.00800.00
Personal Taxes *(435.12)(266.74)(391.12)
Net After-Tax Cash454.88463.26408.88
Income Earned Directly1,000.001,000.001,000.00
Personal Taxes(535.00)(535.00)(535.00)
Net After-Tax Cash465.00465.00465.00
Deferral of Taxes425.00265.0028.30
Deferral of Tax as % of Income42.50%26.50%2.83%
Savings (Cost)(10.12)(1.74)(56.12)
Corporate Rates
Tax on Income <500k11.0%
Tax on Income >500k27.0%
Tax on Investment Income50.67%
Income Earned Directly Taxed at the Top Marginal Tax Rates as Follows:
Eligible Dividends36.54%
Ineligible Dividends48.89%
Salaries/Interest53.50%

* 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 earningsBasic exemption amountMaximum contributory earningsEmployee and employer contribution rate (%)Maximum annual employee and employer contribution
$61,600$3,500$58,1005.45%$3,166.45

EI Contribution Rates for 2021

Maximum annual insurable earningsRate (%)Maximum annual employee premiumMaximum annual employer premium
$56,3001.58%$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.