The 2022 tax brackets in Canada, based on annual income and broken down by province, too
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Scotiabank
Knowing where you fit within the tax brackets can help you prep for your 2022 income tax return.
Photo by PiggyBank from Unsplash
We all pay taxes, yet most of us don’t think about which federal and provincial tax brackets our income falls into. However, it’s important to understand how the numbers break down. That’s because knowing this information lets you estimate how much tax you owe on your 2022 income—especially if you’re self-employed or you have a side hustle, and you haven’t paid tax on your income yet. The Canadian and provincial tax bracket numbers give you the opportunity to put money aside to pay off that tax bill, instead of having to come up with a lump sum all at once in the spring. They also help you figure out whether to increase your registered retirement savings plan (RRSP) contributions, with the aim of reducing your notice of assessment (NOA) balance owing to $0—and maybe even score a refund.
Tax brackets specify the percentage of tax we should pay, based on how much money we earn for the year. Canada has a progressive tax system instead of a flat system where everyone pays the same percentage. So, here, people with lower incomes pay a lower percentage, and rates increase progressively for higher income earners through different tax brackets. In other words, the more you make, the more tax you pay on your earnings.
Canada has five federal tax brackets with different tax rates, and because we also pay taxes to the provincial or territorial government where we live, they each have their own tax brackets.
What are the federal tax brackets in Canada for 2022?
We crunched the numbers so you can find your tax bracket quickly:
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Total Tax |
| Up to $50,197 | The first $50,197 | 15% | $7,529.55 | $7,529.55 |
| $50,197 to $100,392 | The next $50,195 | 20.5% | $10,289.98 | $17,819.53 ($7,529.55 + $10,289.98) |
| $100,392 to $155,625 | The next $55,233 | 26% | $14,360.58 | $32,180.11 ($17,820 + $14,360.58 |
| $155,625 to $221,708 | The next $66,083 | 29% | $19,164.07 | $51,344.18($32,180.11 + $19,164.07) |
| Over $221,708 | Over $221,708 | 33% | n/a | n/a |
Here’s how federal tax brackets work
Think of Canada’s federal income tax brackets as a ladder: Rates apply only to the earnings that fall within each tier or rung of the ladder. Most provincial tax brackets work this way as well.
Here’s how this gets calculated: The lowest federal tax bracket for 2022 is $0 up to $50,197. If you earned, say, $40,000 from all sources of taxable income—that includes paid work, bank interest, benefits and more—you would fall into that bracket. That means you will pay 15% in federal tax—that’s $6,000.
Now let’s say your annual income is $90,000—this would put you into the second federal tax bracket. You would pay that same 15% on your first $50,197 in earnings, and any income above that would be taxed at 20.5%, the rate for the second federal tax bracket.
It’s easy to find yourself in the table above: First, find the tier range your annual income falls into. Then, subtract the minimum dollar value of that range from your annual income. Multiply that amount by the applicable tax rate. Finally, add the maximum total tax from the previous bracket to estimate your 2022 federal taxes.
Here’s how that looks for someone earning $90,000 who is in the second federal tax bracket:
$90,000 annual income – $50,197 (2nd bracket minimum)
= $39,803
x 2nd bracket rate of 20.5%
= $8,159.62
+ 1st bracket maximum total tax of $7,529.55
= $15,689.17 total federal taxes payable
For someone in the top tax bracket earning $500,000, here’s what that would look like:
$500,000 annual income – $221,708 (5th bracket minimum)
= $278,292
x 5th bracket rate of 33%
= $91,836.36
+ 4th bracket maximum total tax of $51,344.18
= $143,180.54 total federal taxes payable
Note that, because this calculation excludes any deductions you can take to reduce your taxable revenue, such as RRSP contributions, the basic personal tax credit or any other allowable deductions, Canadian tax brackets help you estimate how much federal tax you owe. You won’t know the exact amount until your income tax return is prepared.
The tax brackets for every province and territory in Canada
Now that you’ve figured out your federal taxes, it’s time to move on to the next step—your tax bracket for the province or territory you are in. Again, these calculations don’t take into account any tax deductions you may be eligible for.
Why do Canadians pay into two levels of taxation? Well, separate levels of government are financially responsible for different areas. For example, health care is run by provincial governments, while national security—including the Canadian Armed Forces and the Royal Canadian Mounted Police (RCMP)—is covered at the federal level. Our taxes pay for these services, depending on the province you live in.
Because the income ranges and rates for tax brackets often change from year to year, it’s important to stay current on which tier you sit in. And even if the tax rates stay the same, the income ranges are usually adjusted annually for inflation.
How tax brackets work for Canadian provinces and territories
To figure out your estimated provincial/territorial tax, follow steps similar to those explained above for the federal tax brackets.
First, find the table representing the province or territory you live in. Then, find your annual income on that table. If you fall into the first bracket, multiply your total annual income by the tax rate. If you fall into the second bracket or higher, subtract the minimum dollar value of that bracket range from your total annual income. Multiply this number by the applicable tax rate. To calculate your estimated income tax, add the maximum total tax from the previous bracket, and that’s your estimated provincial/territorial tax. Remember, this is before any applicable surtaxes are applied, as we explain below these table.
Here are the tax brackets for all the provinces and territories in Canada for 2022:
Alberta tax brackets 2022
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Total Tax |
| Up to $131,220 | The first $131,220 | 10% | $13,122 | $13,122 |
| $131,220 to $157,464 | The next $26,244 | 12% | $3,149 | $16,271 ($13,122 + $3,149) |
| $157,464 to $209,952 | The next $52,488 | 13% | $6,823 | $23,094 ($16,271 + $6,823) |
| $209,952 to $314,928 | The next $104,976 | 14% | $14,697 | $37,792 ($23,095 + $14,697) |
| Over $314,928 | Over $314,928 | 15% | n/a | n/a |
British Columbia tax brackets 2022
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Total Tax |
| Up to $43,070 | The first $43,070 | 5.06% | $2,179 | $2,179 |
| $43,070 to $86,141 | The next $43,071 | 7.7% | $3,316 | $5,495 ($2,179 + $3,316) |
| $86,141 to $98,901 | The next $12,760 | 10.5% | $1,340 | $6,835 ($5,495 + $1,340) |
| $98,901 to $120,094 | The next $21,193 | 12.29% | $2,605 | $9,440 ($6,835 + $2,605) |
| $120,094 to $162,832 | The next $42,738 | 14.7% | $6,282 | $15,722 ($9,440 + $6,282) |
| $162,832 to $227,091 | The next $64,259 | 16.8% | $10,796 | $26,518 ($10,796 + $15,722) |
| Over $227,091 | Over $227,091 | 20.5% | n/a | n/a |
Manitoba tax brackets 2022
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Total Tax |
| Up to $34,431 | The first $34,431 | 10.8% | $3,719 | $3,719 |
| $34,431 to $74,416 | The next $39,985 | 12.75% | $5,098 | $8,817 ($3,719 + $5,098) |
| Over $74,416 | Over $74,416 | 17.4% | n/a | n/a |
New Brunswick tax brackets 2022
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Total Tax |
| Up to $44,887 | The first $44,887 | 9.4% | $4,219 | $4,219 |
| $44,887 to $89,775 | The next $44,888 | 14.82% | $6,652 | $10,871 ($4,219 + $6,652) |
| $89,775 to $145,955 | The next $56,180 | 16.52% | $9,281 | $20,152 ($10,871 + $9,281) |
| $145,955 to $166,280 | The next $20,325 | 17.84% | $3,626 | $23,778 ($20,152 + $3,626) |
| Over $166,280 | Over $166,280 | 20.3% | n/a | n/a |
Newfoundland and Labrador tax brackets 2022
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Tax Total |
| Up to $39,147 | The first $39,147 | 8.7% | $3,406 | $3,406 |
| $39,147 to $78,294 | The next $39,147 | 14.5% | $5,676 | $9,082 ($3,406 + $5,676) |
| $78,294 to $139,780 | The next $61,486 | 15.8% | $9,715 | $18,797 ($9,082 + $9,715) |
| $139,780 to $195,693 | The next $55,913 | 17.8% | $9,953 | $28,750 ($18,797 + $9,953) |
| $195,693 to $250,000 | The next $54,307 | 19.8% | $10,753 | $39,503 ($28,750 + $10,753) |
| $250,000 to $500,000 | The next $250,000 | 20.8% | $52,000 | $91,503 ($39,503 + $52,000) |
| $500,000 to $1,000,000 | The next $500,000 | 21.3% | $106,500 | $158,500 ($52,000 + $106,500) |
| Over $1,000,000 | Over $1,000,000 | 21.8% | n/a | n/a |
Northwest Territories tax brackets 2022
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Tax Total |
| Up to $45,462 | The first $45,462 | 5.9% | $2,682 | $2,682 |
| $45,462 to $90,927 | The next $45,465 | 8.6% | $3,910 | $6,592 ($2,682 + $3,910) |
| $90,927 to $147,826 | The next $56,899 | 12.2% | $6,942 | $13,534 ($6,592 + $6,942) |
| Over $147,826 | Over $147,826 | 14.05% | n/a | n/a |
Nova Scotia tax brackets 2022
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Tax Total |
| Up to $29,590 | The first $29,590 | 8.79% | $2,601 | $2,601 |
| $29,590 to $59,180 | The next $29,590 | 14.95% | $4,424 | $7,025 ($2,601 + $4,424) |
| $59,180 to $93,000 | The next $33,820 | 16.67% | $5,638 | $12,663 ($7,025 + $5,638) |
| $93,000 $150,000 | The next $57,000 | 17.5% | $9,975 | $22,638 ($12,663 + $9,975) |
| Over $150,000 | Over $150,000 | 21% | n/a | n/a |
Nunavut tax brackets 2022
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Tax Total |
| Up to $47,862 | The first $47,862 | 4% | $1,914 | $1,914 |
| $47,862 to $95,724 | The next $47,862 | 7% | $3,350 | $5,264 ($1,914 + $3,350) |
| $95,724 to $155,625 | The next $59,901 | 9% | $5,391 | $10,655 ($5,264 + $5,391) |
| Over $155,625 | Over $155,625 | 11.5% | n/a | n/a |
Ontario tax brackets 2022
In addition to these tax rates, Ontarians also play a surtax.
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Tax Total |
| Up to $46,226 | The first $46,226 | 5.05% | $2,334 | $2,334 |
| $46,226 to $92,454 | The next $46,228 | 9.15% | $4,230 | $6,564 ($2,334 + $4,230) |
| $92,454 to $150,000 | The next $57,546 | 11.16% | $6,422 | $13,006 ($6,564 + $6,422) |
| $150,000 to $220,000 | The next $70,000 | 12.16% | $8,512 | $21,518 ($13,006 + $8,512) |
| Over $220,000 | Over $220,000 | 13.16% | n/a | n/a |
Prince Edward Island tax brackets 2022
In addition to these tax rates, Islanders also play a surtax.
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Tax Total |
| Up to $31,984 | The first $31,984 | 9.8% | $3,134 | $3,134 |
| $31,984 to $63,969 | The next $31,985 | 13.8% | $4,414 | $7,548 ($3,134 + $4,414) |
| Over $63,969 | Over $63,969 | 16.7% | n/a | n/a |
Quebec tax brackets 2022
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Tax Total |
| Up to $46,295 | The first $46,295 | 15% | $6,944 | $6,944 |
| $46,295 to $92,580 | The next $46,285 | 20% | $9,257 | $16,201 ($6,944 + $9,257) |
| $92,580 to $112,655 | The next $20,075 | 24% | $4,818 | $21,019 ($16,201 + $4,818) |
| Over $112,655 | Over $112,655 | 25.75% | n/a | n/a |
Saskatchewan tax brackets 2022
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Tax Total |
| Up to $46,773 | The first $46,773 | 10.5% | $4,911 | $4,911 |
| $46,773 to $133,638 | The next $86,865 | 12.5% | $10,858 | $15,769 ($4,911 + $10,858) |
| Over $133,638 | Over $133,638 | 14.5% | n/a | n/a |
Yukon tax brackets 2022
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Tax Total |
| Up to $50,197 | The first $50,197 | 6.4% | $3,213 | $3,213 |
| $50,197 to $100,392 | The next $50,195 | 9% | $4,518 | $7,731 ($3,213 + $4,518) |
| $100,392 to $155,625 | The next $55,233 | 10.9% | $6,020 | $13,751 ($7,731 + $6,020) |
| $155,625 to $500,000 | The next $344,375 | 12.8% | $44,080 | $57,831 ($13,751 + $44,080) |
| Over $500,000 | Over $500,000 | 15% | n/a | n/a |
Wait, what about the surtax?
Looking at Prince Edward Island and Ontario tax rates, you might think those numbers seem low compared to other provincial rates. However, personal income in these two provinces gets taxed again with a surtax—which amounts to a tax on a tax.
In P.E.I., residents pay a surtax of 10%, unless your basic provincial tax payable is less than or equal to $12,500—in which case you pay no surtax. To calculate the surtax, multiply your annual income by 0.10.
The Ontario surtax is more complex, so the calculation takes a few more steps, which you’ll see in the table below.
| Provincial Tax Owed | Surtax Rates |
|---|---|
| Up to $4,991 | 0% |
| $4,991 to $6,387 | 20% |
| Over $6,387 | 56% (36% + 20%) |
For your 2022 income, if your base provincial tax is up to $4,991, you do not pay a surtax. If your base provincial tax is between $4,991 and $6,387, you pay 20% on the portion of provincial tax owed that surpasses $4,991. Finally, if your base provincial tax exceeds $6,387, you pay 20% on the portion of provincial tax owed over $4,991, plus 36% on the portion over $6,387. But good news: Most personal tax programs automatically figure this out.
Beyond tax brackets, what else do you need to know to prepare for tax season in 2022?
Now that you understand why it’s helpful to know which federal and provincial tax brackets apply to your annual income, you’ll be able to anticipate whether you will owe taxes in April or you will receive a tax refund. And if you owe money, it’s better to find out earlier than later. That way you can save up the money ahead of the May 2, 2023, tax payment deadline and avoid having to pay interest and penalties on overdue taxes. (Normally, the payment deadline is April 30, but in 2023 that falls on a Sunday.)
You might also want to consider a more proactive strategy: Making monthly contributions to your RRSP throughout the year. Investing in an RRSP enables you to deduct your contribution amounts from your taxable income. Reducing your taxable income usually means a smaller tax bill or a larger tax refund. By paying into your plan monthly, you can maximize the benefits of your RRSP and tax-deferred investment growth.
And speaking of maximizing, you’ll get the biggest tax deduction by contributing the most you’re allowed in a year—it’s called “maxing out” your RRSP. This is especially true if you’re in a higher tax bracket. The contribution limit for an RRSP is usually the lesser of 18% of your earned income or the annual RRSP limit ($29,210 for 2022). (Find out how much you should have in your RRSP, whether an RRSP or TFSA makes more sense for you, and what investments to consider.)
Rather than scrambling to come up with a lump sum before the RRSP contribution deadline—which is March 1, 2023—you could set up automatic weekly or monthly transfers from your bank account to your RRSP. It’s called a pre-authorized contribution—and it’s like a gift to your future self.
Plus, you’ll be able to take advantage of dollar-cost averaging: When you invest on a regular schedule, you purchase more shares when prices dip and fewer shares when prices are high, which reduces risk and lowers your average cost per share.
To calculate how much tax you’ll save by making RRSP contributions, figure out the applicable tax rate as explained above. Then, multiply your total contribution by that tax rate. This gives you the approximate tax reduction or potential tax refund.
Read more on income taxes:
- Self-employed? Here’s how to file taxes for a side hustle
- Side hustles and self-employment in Canada: Taxes, business expenses and more
- “My financial advisor overcontributed to my TFSA—now what?”
- Watch: 4 things to consider before putting your money in a TFSA or RRSP
- How GIC returns are taxed in Canada
- What expenses can you deduct for a second property in Canada?
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The tax tables you presented do not provide enough information. They are not much help because they should include the tax rates of different income sources. I don’t see any rates for dividend & capital gains income.