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2012 Income Tax Rates Canada | Tax Brackets 2012

2012 Income Tax Rates Canada | Tax Brackets 2012

Both the federal and provincial governments have imposed income taxes on individuals and the federal government charges the bulk of income taxes with the provinces charging a somewhat lower percentage. Income taxes throughout Canada are progressive with the high income residents paying a higher percentage than the low income residents.

Income Tax Rates for the Year 2012:
  • 15% on the first $42,707 of taxable income
  • 22% on the next $42,707 of taxable income (on the portion of taxable income between $42,707 and $85,414)
  • 26%on the next  $85,414 of taxable income (on the portion of taxable income between $85,414 and $132,406)
  • 29% of taxable income over  $132,406

Canadian personal income tax can be deferred in a Registered Retirement Savings Plan (RRSP) and tax sheltered savings accounts (which may include mutual funds and other financial instruments) that are intended to help individuals save for their retirement.

Canadian Tax Brackets 2012:

Listed below are the combined provincial and federal personal income tax rate brackets for the Year 2012.
Rates are subject to change in accordance with federal and provincial budgets.

Provincial / Federal Tax Rates (combined chart)
Taxable Income Tax Rate(s)
$20,000 – $40,000 9.9% on the first $20,000 of taxable income

13.3%on the first $30,000 of taxable income

15.2% on the first $40,000 of taxable income

$42,000 – $58,000 15.7% on the first $42,000 of taxable income

18.2%on the first $50,000 of taxable income

20.0% on the first $58,000 of taxable income

$60,000 – $70,000 20.3% on the first $60,000 of taxable income

21.3%on the first $66,000 of taxable income

22.0% on the first $70,000 of taxable income

$72,000 – $82,000 22.3% on the first $72,000 of taxable income

22.8%on the first $76,000 of taxable income

23.9% on the first $82,000 of taxable income

$84,000 – $94,000 24.4% on the first $84,000 of taxable income

25.6%on the first $90,000 of taxable income

26.4% on the first $94,000 of taxable income

$96,000 – $115,000 26.7% on the first $96,000 of taxable income

28.2%on the first $105,000of taxable income

29.5% on the first $115,000 of taxable income

$120,000 – $150,000 30.1% on the first $120,000 of taxable income

30.6%on the first $125,000of taxable income

33.2% on the first $150,000 of taxable income

$200,000 – $400,000 36.5% on the first $200,000 of taxable income

39.8%on the first $300,000 of taxable income

41.4% on the first $400,000 of taxable income

$500,000 42.4% on the first $500,000 of taxable income

21.3%on the first $66,000 of taxable income

22.0% on the first $70,000 of taxable income