Tax season is just around the corner! As you gather your documents and prepare your tax software, you are likely thinking about how much you’re going to owe. Or maybe you’ll be one of the lucky Canadians who receives a refund! While preparing for tax season, you might be curious about the combined federal and provincial tax rates. Normally, these are expressed separately which makes it a challenge to estimate and visualize how much tax you owe. In this article, we’ll explain the basics of personal tax brackets and rates in Canada, all combined tax rates, and how you can use this information to enhance your personal finances.
Table of contents
- An Overview of the Canadian Tax System
- Are federal and provincial tax rates combined?
- What are the federal and provincial tax rates for 2022?
- Federal Tax Brackets and Rates
- Combined Federal and Provincial Tax Rates 2022 Ontario
- Combined Federal and Provincial Tax Rates 2022 British Columbia
- Combined Federal and Provincial Tax Rates 2022 Alberta
- Combined Federal and Provincial Tax Rates 2022 Manitoba
- Combined Federal and Provincial Tax Rates 2022 New Brunswick
- Combined Federal and Provincial Tax Rates 2022 Newfoundland and Labrador
- Combined Federal and Provincial Tax Rates 2022 Northwest Territories
- Combined Federal and Provincial Tax Rates 2022 Nova Scotia
- Combined Federal and Provincial Tax Rates 2022 Nunavut
- Combined Federal and Provincial Tax Rates 2022 Prince Edward Island
- Combined Federal and Provincial Tax Rates 2022 Quebec
- Combined Federal and Provincial Tax Rates 2022 Saskatchewan
- Combined Federal and Provincial Tax Rates 2022 Yukon
- Combined Tax Rate Example
An Overview of the Canadian Tax System
Canada’s tax system is progressive, sometimes called graduated. This is a fancy way of saying the more money you make, the more tax you will pay. In many ways, having a progressive system is advantageous because it equalizes the wealth of a nation.
Although, the main drawback is a progressive tax system is more complex. In other parts of the world, they have a proportional tax system which means the same percentage of tax is taken from everyone, regardless of income level. This is much easier to calculate and understand but often isn’t perceived as “fair” across all economic classes.
To calculate your tax liability, it’s important you understand tax brackets and tax rates. Let’s take a closer look below.
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What are tax rates?
Tax rates are pretty straightforward — they’re the percentage applied to income to arrive at your tax liability. In Canada, there are three types of tax rates at the personal level: capital gains, dividend and all other income tax rates.
In this article, we’ll be exploring the last one since it applies to all Canadians. The capital gains tax rate only applies to income arising from the disposal of an asset. The dividend tax rate only applies to dividend income earned from investments.
What are tax brackets in Canada?
Tax brackets are the “steps” of income which are subject to different tax rates. This is the component of the Canadian tax system that enables lower income individuals to be taxed less than higher income individuals. Tax brackets are defined down to the dollar, as you’ll see below. Confused? Don’t worry, we’ll look at an example below!
Related Reading: Types of Tax Returns in Canada
Are federal and provincial tax rates combined?
No, federal and provincial tax rates are not automatically combined. Normally, you calculate federal tax first, then provincial tax, to arrive at your total tax payable. However, there is such a thing as a combined tax rate, sometimes called a marginal tax rate.
Knowing your combined tax rate can help you better plan for tax season since you have a better idea of how much you’ll owe. Everyone has a different combined tax rate because it depends on your tax bracket and location within Canada.
What are the federal and provincial tax rates for 2022?
Now that you know what a combined tax rate is, let’s explore the combined rates for everyone in Canada. By using the below tables, you’ll be able to navigate your personal combined rate. All you need to know is your province or territory of residence and an estimate of your annual income for 2022.
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Federal Tax Brackets and Rates
Here are the federal tax brackets and rates for the 2022 tax year. The provincial and territorial tables below will reflect the combined rate using this table and the local rates.
| 2022 Federal Tax Brackets | 2022 Federal Tax Rates |
| $0 to $50,197 | 15% |
| $50,197 to $100,392 | 20.5% |
| $100,392 to $155,625 | 26% |
| $155,625 to $221,708 | 29% |
| $221,708 and above | 33% |
Combined Federal and Provincial Tax Rates 2022 Ontario
| 2022 Ontario Tax Brackets | 2022 Ontario Tax Rates | 2022 Combined Tax Rates |
| $0 to $46,226 | 5.05% | 20.5% |
| $46,226 to $50,197 | 9.15% | 24.15% |
| $50,197 to $81,411 | 9.15% | 29.65% |
| $81,411 to $92,454 | 9.15% | 31.48% |
| $92,454 to $95,906 | 11.16% | 33.89% |
| $95,906 to $100,392 | 11.16% | 37.91% |
| $100,392 to $150,000 | 11.16% | 43.41% |
| $150,000 to $155,625 | 12.16% | 44.97% |
| $155,625 to $220,000 | 12.16% | 48.35% |
| $220,000 to $221,708 | 13.16% | 49.91% |
| $221,708 and above | 13.16% | 53.53% |
Combined Federal and Provincial Tax Rates 2022 British Columbia
| 2022 BC Tax Brackets | 2022 BC Tax Rates | 2022 Combined Tax Rates |
| $0 to $43,070 | 5.06% | 20.6% |
| $43,070 to $50,197 | 7.7% | 22.7% |
| $50,197 to $86,141 | 7.7% | 28.2% |
| $86,141 to $98,901 | 10.5% | 31% |
| $98,901 to $100,392 | 12.29% | 32.79% |
| $100,392 to $120,094 | 12.29% | 38.29% |
| $120,094 to $155,625 | 14.7% | 40.7% |
| $155,625 to $162,832 | 14.7% | 44.08% |
| $162,832 to $221,708 | 16.8% | 46.18% |
| $221,708 to $227,091 | 16.8% | 49.8% |
| $227,091 and above | 20.5% | 53.5% |
Combined Federal and Provincial Tax Rates 2022 Alberta
| 2022 Alberta Tax Brackets | 2022 Alberta Tax Rates | 2022 Combined Tax Rates |
| $0 to $50,197 | 10% | 25% |
| $50,197 to $100,392 | 10% | 30.5% |
| $100,392 to $134,238 | 10% | 36% |
| $134,238 to $155,625 | 12% | 38% |
| $155,625 to $161,086 | 12% | 41.38% |
| $161,086 to $214,781 | 13% | 42.38% |
| $214,781 to $221,708 | 14% | 43.38% |
| $221,708 to $322,171 | 14% | 47% |
| $322,171 and above | 15% | 48% |
Combined Federal and Provincial Tax Rates 2022 Manitoba
| 2022 Manitoba Tax Brackets | 2022 Manitoba Tax Rates | 2022 Combined Tax Rates |
| $0 to $34,431 | 10.8% | 25.8% |
| $34,431 to $50,197 | 12.75% | 27.75% |
| $50,197 to $74,416 | 12.75% | 33.25% |
| $74,416 to $100,392 | 17.4% | 37.9% |
| $100,392 to $155,625 | 17.4% | 43.4% |
| $155,625 to $221,708 | 17.4% | 46.78% |
| $221,708 and above | 17.4% | 50.4% |
Combined Federal and Provincial Tax Rates 2022 New Brunswick
| 2022 New Brunswick Tax Brackets | 2022 New Brunswick Tax Rates | 2022 Combined Tax Rates |
| $0 to $44,887 | 9.4% | 24.4% |
| $44,887 to $50,197 | 14.82% | 29.82% |
| $50,197 to $89,775 | 14.82% | 35.32% |
| $89,775 to $100,392 | 16.52% | 37.02% |
| $100,392 to $145,955 | 16.52% | 42.52% |
| $145,955 to $155,625 | 17.84% | 43.84% |
| $155,625 to $166,280 | 17.84% | 47.22% |
| $166,280 to $221,708 | 20.3% | 49.68% |
| $221,708 and above | 20.3% | 53.3% |
Combined Federal and Provincial Tax Rates 2022 Newfoundland and Labrador
| 2022 Newfoundland and Labrador Tax Brackets | 2022 Newfoundland and Labrador Tax Rates | 2022 Combined Tax Rates |
| $0 to $39,147 | 8.7% | 23.7% |
| $39,147 to $50,197 | 14.5% | 29.5% |
| $50,197 to $78,294 | 14.5% | 35% |
| $78,294 to $100,392 | 15.8% | 36.3% |
| $100,392 to $139,780 | 15.8% | 41.8% |
| $139,780 to $155,625 | 17.8% | 43.8% |
| $155,625 to $195,693 | 17.8% | 47.18% |
| $195,693 to $221,708 | 19.8% | 49.18% |
| $221,708 and $250,000 | 19.8% | 52.8% |
| $250,000 to $500,000 | 20.8% | 53.8% |
| $500,000 to $1,000,000 | 21.3% | 54.3% |
| $1,000,000 and above | 21.8% | 54.8% |
Combined Federal and Provincial Tax Rates 2022 Northwest Territories
| 2022 Northwest Territories Tax Brackets | 2022 Northwest Territories Tax Rates | 2022 Combined Tax Rates |
| $0 to $45,462 | 5.9% | 20.90% |
| $45,462 to $50,197 | 8.6% | 23.60% |
| $50,197 to $90,927 | 8.6% | 29.1% |
| $90,927 to $100,392 | 12.2% | 32.7% |
| $100,392 to $147,826 | 12.2% | 38.2% |
| $147,826 to $155,625 | 14.05% | 40.05% |
| $155,625 to $221,708 | 14.05% | 43.43% |
| $221,708 and above | 14.05% | 47.05% |
Combined Federal and Provincial Tax Rates 2022 Nova Scotia
| 2022 Nova Scotia Tax Brackets | 2022 Nova Scotia Tax Rates | 2022 Combined Tax Rates |
| $0 to $25,000 | 8.79% | 23.79% |
| $25,000 to $29,590 | 14.95% | 24.32% |
| $29,590 to $50,197 | 14.95% | 30.48% |
| $50,197 to $59,180 | 14.95% | 35.98% |
| $59,180 to $74,999 | 16.67% | 37.7% |
| $74,999 to $93,000 | 16.67% | 37.17% |
| $93,000 to $100,392 | 17.5% | 38% |
| $100,392 to $150,000 | 17.5% | 43.5% |
| $150,000 to $155,625 | 21% | 47% |
| $155,625 to $221,708 | 21% | 50.38% |
| $221,708 and above | 21% | 54% |
Combined Federal and Provincial Tax Rates 2022 Nunavut
| 2022 Nunavut Tax Brackets | 2022 Nunavut Tax Rates | 2022 Combined Tax Rates |
| $0 to $47,862 | 4% | 23.79% |
| $47,862 to $50,197 | 7% | 24.32% |
| $50,197 to $95,724 | 7% | 30.48% |
| $95,724 to $100,392 | 9% | 35.98% |
| $100,392 to $155,625 | 9% | 37.7% |
| $155,625 to $221,708 | 11.5% | 37.17% |
| $221,708 and above | 11.5% | 54% |
Combined Federal and Provincial Tax Rates 2022 Prince Edward Island
| 2022 PEI Tax Brackets | 2022 PEI Tax Rates | 2022 Combined Tax Rates |
| $0 to $31,984 | 9.8% | 24.8% |
| $31,984 to $50,197 | 13.8% | 28.8% |
| $50,197 to $63,969 | 13.8% | 34.3% |
| $63,969 to $100,223 | 16.7% | 37.2% |
| $100,223 to $100,392 | 16.7% | 38.87% |
| $100,392 to $155,625 | 16.7% | 44.37% |
| $155,625 to $221,708 | 16.7% | 47.75% |
| $221,708 and above | 16.7% | 51.37% |
Combined Federal and Provincial Tax Rates 2022 Quebec
| 2022 Quebec Tax Brackets | 2022 Quebec Tax Rates | 2022 Combined Tax Rates |
| $0 to $46,295 | 15% | 27.53% |
| $46,295 to $50,197 | 20% | 32.53% |
| $50,197 to $92,580 | 20% | 37.12% |
| $92,580 to $100,392 | 24% | 41.12% |
| $100,392 to $112,655 | 24% | 45.71% |
| $112,665 to $155,625 | 25.75% | 47.46% |
| $155,625 to $221,708 | 25.75% | 50.28% |
| $221,708 and above | 25.75% | 53.31% |
Combined Federal and Provincial Tax Rates 2022 Saskatchewan
| 2022 Saskatchewan Tax Brackets | 2022 Saskatchewan Tax Rates | 2022 Combined Tax Rates |
| $0 to $46,773 | 10.5% | 25.5% |
| $46,773 to $50,197 | 12.5% | 27.5% |
| $50,197 to $100,392 | 12.5% | 33% |
| $100,392 to $133,638 | 12.5% | 38.5% |
| $133,638 to $155,625 | 14.5% | 40.5% |
| $155,625 to $221,708 | 14.5% | 43.88% |
| $221,708 and above | 14.5% | 47.5% |
Combined Federal and Provincial Tax Rates 2022 Yukon
| 2022 Yukon Tax Brackets | 2022 Yukon Tax Rates | 2022 Combined Tax Rates |
| $0 to $50,197 | 6.4% | 21.4% |
| $50,197 to $100,392 | 9% | 29.5% |
| $100,392 to $155,625 | 10.9% | 36.9% |
| $155,625 to $221,708 | 12.96% | 42.34% |
| $221,708 to $500,000 | 12.8% | 45.8% |
| $500,000 and above | 15% | 48% |
Combined Tax Rate Example
Iris lives in Nova Scotia and earned $55,000 in 2022 from her 9 to 5 job. Her combined federal and provincial tax liability is calculated as follows:
| Tax Bracket | Base | Tax Rate | Tax Liability |
| $0 to $25,000 | $25,000 ($25,000 – $0) | 23.79% | $5,947.50 |
| $25,000 to $29,590 | $4,590 ($29,590 – $25,000) | 24.32% | $1,116.29 |
| $29,590 to $50,197 | $20,607 ($50,197 – $29,590) | 30.48% | $6,281.01 |
| $50,197 to $55,000 | $4,803 ($55,000 – $50,197) | 35.98% | $1,728.12 |
| Total Tax Liability | $15,072.92 |
Iris’ total tax liability is $15,072.92 which considers both provincial and federal taxes. While this does seem high, remember that the next step is to deduct tax credits off this amount!
Related Reading: Business Structure Types in Canada
Impact of Combined Tax Rates on Personal Finance Decisions
When you look at the federal and provincial tax rates separately, it can be difficult to picture the tax impact on your personal finances. For this reason, it’s helpful to utilize the combined tax rates so you can estimate the tax impact on your investments. As an example, if you receive a raise and want to estimate how much additional tax you’ll pay, you can use the combined tax rates. Remember, profit is always subject to tax (unfortunately) which is why it’s important to consider the overall impact at the provincial and federal level!
Not sure how to proceed with your tax planning? Reach out to a financial advisor today!