| Combined Federal and Ontario
Marginal Tax Rates — 2007(1) |
| Taxable Income* |
Ordinary Income |
Gross Capital Gain |
Eligible Dividend*#^ |
Non-Eligible Dividend*## |
| At $35,488 |
24.15 |
12.08 |
(1.47) |
7.73 |
| At $37,178 |
31.15 |
15.58 |
7.95 |
15.86 |
| At $62,487** |
32.98 |
16.49 |
8.66 |
16.86 |
| At $70,976 |
35.39 |
17.70 |
12.16 |
19.88 |
| At $73,622** |
39.41 |
19.70 |
14.49 |
22.59 |
| At $74,357 |
43.41 |
21.70 |
20.29 |
27.59 |
| At $120,887 |
46.41 |
23.20 |
24.64 |
31.34 |
| ^ eligible dividend range of -1.47% to +3.55% at taxable income
of $35,488 |
| Combined
Federal and Ontario Marginal Tax Rates — 2008(1)(2)
|
| Taxable Income* |
Ordinary Income |
Gross Capital Gain |
Eligible Dividend*#^ |
Non-Eligible Dividend*## |
| At $36,020 |
24.15 |
12.08 |
(1.47) |
7.73 |
| At $37,885 |
31.15 |
15.58 |
7.95 |
15.86 |
| At $63,424** |
32.98 |
16.49 |
8.66 |
16.86 |
| At $72,040 |
35.39 |
17.70 |
12.16 |
19.88 |
| At $74,726* |
39.41 |
19.70 |
14.49 |
22.59 |
| At $75,769 |
43.41 |
21.70 |
20.29 |
27.59 |
| At $123,184 |
46.41 |
23.20 |
24.64 |
31.34 |
| ^ eligible dividend range of -1.47% to +3.55% at taxable income
of $36,020 |
*Calculated on actual dividends, not grossed-up amount
for tax purposes. These rates take into account the new, two-tier dividend
tax structure. Check with your certified general accountant to confirm
which dividend rates are applicable to you.
# Eligible dividends include those received from a public Canadian corporation
and certain private, resident corporations that must pay Canadian tax
at the general corporate rate. Note that negative rates of return for
certain lower taxable income amounts, which may represent tax credits
or refunds, are approximate figures only because federal tax and provincial/territorial
tax are calculated separately and cannot typically be offset against one
another.
## Non-eligible dividends include those received from Canadian-controlled
private corporations (CCPC) that are not subject to the general corporate
tax rate.
(1) Tax rates before personal credits are applied, except for Ontario
surtax, denoted as a double asterisk (**), which is net of the basic personal
credit only. See the section on Federal and Ontario Non-Refundable Tax Credits,
for tax credit information. It is assumed
each bracket is composed of ordinary income. The rate indicated is the
marginal rate for additional income of the type noted.
(2) The increased tax bracket limits for 2008, on the previous page,
assume a federal CPI adjustment of 1.9 per cent and a provincial CPI adjustment
of 1.5 per cent in 2008.
The prior tables take into effect Ontario rates, using the TONI system
introduced by the government in 2000. In 2007 and 2008, they are as follows:
| Taxable
Income |
2007 |
| To $35,488 |
6.05% |
| Between $35,488 and $70,976 |
9.15% |
| $70,976+ |
11.16% |
| Taxable
Income |
2008 |
| To $36,020 |
6.05% |
| Between $36,020 and $72,040 |
9.15% |
| $72,040+ |
11.16% |
The tables also take into account Ontario surtaxes of both 20 per cent (at
income of $62,487 in 2007 and $63,424 in 2008) and 56 per cent (at income
of $73,622 in 2007 and $74,726 in 2008).
Taxable income brackets are indexed annually by a formula based on the
federal and provincial CPI increases. The above rates are, therefore,
subject to change as a result of both that and measures brought forth
in budgets introduced after the publication date.
Table of Contents