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.
| 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 |
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