Tax Rates
January 1, 2025
Personal Tax Rates
Marginal Personal Tax Rates for 2026 (British Columbia)
January 1, 2026
| Income | Salary/Interest | Capital Gains | Eligible dividends | Regular dividends |
|---|---|---|---|---|
| Up to $16,451 | 0.00% | 0.00% | 0.00% | 0.00% |
| $16,451 – $24,578 | 14.00% | 7.00% | -1.41% | 5.72% |
| $24,579 – $25,569 | 19.60% | 9.80% | -10.24% | 9.90% |
| $25,570 – $41,720 | 23.16% | 11.58% | -5.33% | 14.00% |
| $41,721 – $50,362 | 19.60% | 9.80% | -10.24% | 9.90% |
| $50,363 – $58,523 | 21.70% | 10.85% | -7.34% | 12.32% |
| $58,523 – $100,728 | 28.20% | 14.10% | 1.63% | 19.80% |
| $100,728 – $115,648 | 31.00% | 15.50% | 5.49% | 23.02% |
| $115,648 – $117,045 | 32.79% | 16.40% | 7.96% | 25.07% |
| $117,045 – $140,430 | 38.29% | 19.15% | 15.55% | 31.40% |
| $140,430 – $181,440 | 40.70% | 20.35% | 18.88% | 34.17% |
| $181,440 – $190,405 | 43.99% | 22.00% | 23.42% | 37.95% |
| $190,405 – $258,482 | 46.09% | 23.05% | 26.32% | 40.37% |
| $258,482 – $265,545 | 49.80% | 24.90% | 31.44% | 44.64% |
| $265,545 + | 53.50% | 26.75% | 36.54% | 48.89% |
* Starting at incomes of $181,440 the personal amount tax credit of $16,452 is gradually decreased to $14,829 at incomes of $258,482.
Corporate Taxes
For Canadian Controlled Private Corporations
January 1, 2025
| Year | Small Business | Rate | Active Income | Rate | Investment** |
|---|---|---|---|---|---|
| 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% |
| 2024 | Up to $500,000 | 11% | Over $500,000 | 27.00% | 50.67% |
| 2025 | Up to $500,000 | 11% | Over $500,000 | 27.00% | 50.67% |
| 2026 | Up to $500,000 | 11% | Over $500,000 | 27.00% | 50.67% |
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 2026
| Active 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 | – | – | 306.7 |
| Available for Dividend | 890 | 730 | 800.00 |
| Personal Taxes* | -435.12 | 266.74 | -391.12 |
| Net After-Tax Cash | 454.88 | 463.26 | 408.8 |
| Income Earned Directly | |||
| 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 |
| Tax Deferral & Savings | |||
| Deferral of Taxes | 425.00 | 265.00 | 28.30 |
| Deferral of Tax as % of Income | 42.50% | 26.50% | 2.83% |
| Saving (Cost) | 10.12 | 1.74 | 56.12 |
| Corporate Rates | |||
| Tax on Income <500k | 11.00% | ||
| Tax on Income >500k | 27.00% | ||
| 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 2026 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
EI Contribution Rates for 2026
| Maximum annual insurable earnings | Rate (%) | Maximum annual employee premium | Maximum annual employer premium |
|---|---|---|---|
| $68,900 | 1.63% | $1,123.07 | $1,572.30 |
CPP Contribution Rates for 2026
| Maximum annual pensionable earnings | Basic exemption amount | Maximum contributory earnings | Employee and employer contribution rate (%) | Maximum annual employee and employer contribution |
|---|---|---|---|---|
| $74,600 | $3,500 | $71,100 | 5.95% | $4,230.45 |
CPP2 Contribution Rates for 2026
January 1, 2025
| Additional Maximum Annual Pensionable Earnings | Employee and Employer Contribution Rate (%) | Maximum Annual Employee and Employer Contribution |
|---|---|---|
| 10,400 | 4% | 416.00 |
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/employment-insurance-ei/ei-premium-rates-maximums.html
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/calculating-deductions/making-deductions/second-additional-cpp-contribution-rates-maximums.html
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/canada-pension-plan-cpp.html#h_10
What is the CPP enhancement
From 2003 to 2018, employees were making contribution of 4.95% on their pensionable earnings up to their annual maximum pensionable earnings (first ceiling), with employers making an equal contribution. These are the base contributions to the CPP.
From 2019 to 2023, the contribution rate for emplyees was increased gradually from 4.95% to 5.95%. These are the base contributions (4.95%) and the first additional contribution to the CPP (1%).
Beginning in 2024, an additional maximum pensionable earnings (second higher ceiling) is introduced. Employees and employers are required to make a second addtitional CPP contribution (CPP2) on these earnings, beginning at the first earnings ceiling and going up to the second earnings ceiling, at a rate of 4.0%.
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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