www.bdo.ca taxation Tax Facts 2013 Current to June 20, 2013 Tax Facts 2013 provides you with a summary of 2013 personal income tax rates and amounts, as well as corporate tax rates (as at July 1, 2013), based on announcements made to June 20, 2013. What s Inside Top Personal Rates for 2013 On page 2, we have set out the top rates in Canada on regular income, dividends and capital gains. Personal Tax Rates On pages 3 to 7, we have set out the tax brackets that apply for the year 2013. For ease of use, a section has been provided for each province and territory containing both federal and provincial/territorial rates. This information can be used along with the personal tax credit information on pages 14 to 16 to estimate your taxes for 2013. Ontario Health Premiums The health premium tax for 2013 is set out on page 7. Combined Federal and Provincial/Territorial Tax Brackets On pages 8 to 11, we have condensed the detailed tax rate information for each province/territory into a chart. You can use the chart that applies to you to estimate your combined federal and provincial/territorial tax liability and to determine effective tax rates on regular income, dividends and capital gains within the income ranges provided. Quick Estimates To allow you to quickly estimate your tax liability, we have provided a quick estimate chart on pages 12 and 13. Personal Tax Credits On pages 14 to 16, we have set out a summary of federal and provincial/territorial non-refundable tax credit amounts. Under the tax on income system, a different set of credit amounts will apply federally and in each province and territory. RRSP, RPP and DPSP Limits On page 17, we have set out the limits for registered retirement savings plans, registered pension plans and deferred profit sharing plans. CPP, EI and QPIP Rates On page 17, we have provided the 2013 Employment Insurance rates and premiums, the 2013 Québec Parental Insurance rates and premiums and the 2013 Canada Pension Plan rates and contributions. Business Tax Rate Information On pages 18 and 19, we have provided a summary of corporate income tax rates, as well as employer payroll and sales tax rates. On page 20, we have summarized capital tax rates. This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO Canada LLP to discuss these matters in the context of your particular circumstances. BDO Canada LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it. BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms.
0B 2013 TOP PERSONAL MARGINAL TAX RATES Jurisdiction Tax on Top Rate (%) Tax-On-Tax Top Rate (%) Provincial Surtax (%) 2013 Combined Top Marginal Rates Regular (%) Eligible (%) Ineligible (%) Capital (%) Federal 29.00 --- --- --- --- --- --- British Columbia Alberta Saskatchewan Manitoba 14.70 --- --- 43.70 25.78 33.71 21.85 10.00 --- --- 39.00 19.29 27.71 19.50 15.00 --- --- 44.00 24.81 33.33 22.00 17.40 --- --- 46.40 32.26 39.15 23.20 Ontario >$509K (1) 13.16 --- 20.00/36.00 49.53 33.85 36.47 24.77 2nd tier top rate 11.16 --- 20.00/36.00 46.41 29.54 32.57 23.21 Québec New Brunswick Nova Scotia Prince Edward Island Newfoundland & Labrador 25.75 --- --- 49.97 35.22 38.54 24.99 16.07 --- --- 45.07 24.91 33.05 22.54 21.00 --- --- 50.00 36.06 36.21 25.00 16.70 --- 10.00 47.37 28.70 38.56 23.69 13.30 --- --- 42.30 22.47 29.96 21.15 Yukon (2) 12.76 --- 5.00 42.40 19.29 30.40 21.20 Northwest Territories Nunavut 14.05 --- --- 43.05 22.81 29.65 21.53 11.50 --- --- 40.50 27.56 28.96 20.25 Non-resident --- 48.00 --- 42.92 --- --- 21.46 (1) Ontario top rates The top rate includes the additional tax on regular taxable income in excess of $509,000. The combined tax rate on regular taxable income over $135,054 but not exceeding $509,000 remains at 46.41% (for all rates applicable to this taxable income level, refer to the second line for Ontario in the chart.) (2) The combined rate for Yukon eligible dividends assumes the Yukon taxpayer has only dividend income. Note, however, that the provincial Yukon eligible dividend tax rate is negative (-3.20% for 2013). Therefore, if the Yukon taxpayer has other income, it may be sheltered from tax by the Yukon's negative eligible dividend tax rate. 2
1B 2013 PERSONAL INCOME TAX RATES British Columbia Tax Calculation 1. Calculate federal tax using the table below. 1. Calculate British Columbia tax using the table below. Taxable Federal Tax Taxable British Columbia Tax $0 to $43,561 15.00% $0 to $37,568 5.06% British Columbia Residents $37,568 to $75,138 $1,901 plus 7.70% of the amount over $37,568 $75,138 to $86,268 $4,794 plus 10.50% of the amount over $75,138 $86,268 to $104,754 $5,963 plus 12.29% of the amount over $86,268 $104,754 and over $8,235 plus 14.70% of the amount over $104,754 2. Reduce tax by total personal tax credits. See page 14 for details. 3. Total federal tax 2. Reduce tax by total personal tax credits. See page 14 for details. 3. Total British Columbia tax Alberta Tax Calculation 1. Calculate federal tax using the table below. 1. Calculate Alberta tax using the formula below. Taxable Federal Tax Taxable income x 10.00% $0 to $43,561 15.00% Alberta Residents 3. Total Alberta tax 2. Reduce tax by total personal tax credits. See page 14 for details. 2. Reduce tax by total personal tax credits. See page 14 for details. 3. Total federal tax Saskatchewan Tax Calculation 1. Calculate federal tax using the table below. 1. Calculate Saskatchewan tax using the table below. Taxable Federal Tax Taxable Saskatchewan Tax $0 to $43,561 15.00% $0 to $42,906 11.00% Saskatchewan Residents $42,906 to $122,589 $4,720 plus 13.00% of the amount over $42,906 $122,589 and over $15,079 plus 15.00% of the amount over $122,589 2. Reduce tax by total personal tax credits. See page 14 for details. 2. Reduce tax by total personal tax credits. 3. Total Saskatchewan tax See page 14 for details. 3. Total federal tax 3
2B 2013 PERSONAL INCOME TAX RATES Manitoba Tax Calculation 1. Calculate federal tax using the table below. 1. Calculate Manitoba tax using the table below. Taxable Federal Tax Taxable Manitoba Tax $0 to $43,561 15.00% $0 to $31,000 10.80% $31,000 to $67,000 $3,348 plus 12.75% of the amount over $31,000 $67,000 and over $7,938 plus 17.40% of the amount over $67,000 2. Reduce tax by total personal tax credits. See page 14 for details. 2. Reduce tax by total personal tax credits. 3. Total Manitoba tax See page 14 for details. 3. Total federal tax Ontario Tax Calculation 1. Calculate federal tax using the table below. 1. Calculate Ontario tax using the table below. Taxable Federal Tax Taxable Ontario Tax $0 to $43,561 15.00% $0 to $39,723 5.05% Manitoba Residents Ontario Residents $39,723 to $79,448 $2,006 plus 9.15% of the amount over $39,723 $79,448 to $509,000 $5,641 plus 11.16% of the amount over $79,448 $509,000 and over $53,579 plus 13.16% of the amount over $509,000 2. Reduce tax by total personal tax credits. 2. Reduce tax by total personal tax credits. See page 14 for details. See page 14 for details. 3. Total federal tax 3. Basic Ontario tax (BOT) 4. Add: Ontario surtax 20.00% of BOT over $4,289 plus 36.00% of BOT over $5,489 5. Total Ontario tax Québec Tax Calculation 1. Calculate federal tax using the table below. 1. Calculate Québec tax using the table below. Taxable Federal Tax Taxable Québec Tax $0 to $43,561 15.00% $0 to $41,095 16.00% Québec Residents $41,095 to $82,190 $6,575 plus 20.00% of the amount over $41,095 $82,190 to $100,000 $14,794 plus 24.00% of the amount over $82,190 $100,000 and over $19,068 plus 25.75% of the amount over $100,000 2. Reduce tax by total personal tax credits. 2. Reduce tax by total personal tax credits. See page 14 for details. See page 14 for details. 3. Basic federal tax (BFT) 3. Total Québec tax 4. Deduct Québec abatement, 16.5% of BFT 5. Net federal tax 4
3B 2013 PERSONAL INCOME TAX RATES New Brunswick Tax Calculation 1. Calculate federal tax using the table below. 1. Calculate New Brunswick tax using the table below. Taxable Federal Tax Taxable New Brunswick Tax $0 to $43,561 15.00% $0 to $38,954 9.39% New Brunswick Residents $38,954 to $77,908 $3,658 plus 13.46% of the amount over $38,954 $77,908 to $126,662 $8,901 plus 14.46% of the amount over $77,908 $126,662 and over $15,951 plus 16.07% of the amount over $126,662 2. Reduce tax by total personal tax credits. 2. Reduce tax by total personal tax credits. See page 14 for details. See page 15 for details. 3. Total federal tax 3. Total New Brunswick tax Nova Scotia Tax Calculation 1. Calculate federal tax using the table below. 1. Calculate Nova Scotia tax using the table below. Taxable Federal Tax Taxable Nova Scotia Tax $0 to $43,561 15.00% $0 to $29,590 8.79% Nova Scotia Residents $29,590 to $59,180 $2,601 plus 14.95% of the amount over $29,590 $59,180 to $93,000 $7,025 plus 16.67% of the amount over $59,180 $93,000 to $150,000 $12,662 plus 17.50% of the amount over $93,000 $150,000 and over $22,637 plus 21.00% of the 2. Reduce tax by total personal tax credits. amount over $150,000 See page 14 for details. 3. Total federal tax 2. Reduce tax by total personal tax credits. See page 15 for details. 3. Total Nova Scotia tax Prince Edward Island Tax Calculation 1. Calculate federal tax using the table below. 1. Calculate P.E.I. tax using the table below. Taxable Federal Tax Taxable Prince Edward Island Tax $0 to $43,561 15.00% $0 to $31,984 9.80% Prince Edward Island Residents $31,984 to $63,969 $3,134 plus 13.80% of the amount over $31,984 $63,969 and over $7,548 plus 16.70% of the amount over $63,969 2. Reduce tax by total personal tax credits. See page 15 for details. 2. Reduce tax by total personal tax credits. 3. Basic Prince Edward Island tax (BPEIT) See page 14 for details. 4. Add: Prince Edward Island surtax 3. Total federal tax 10.00% of BPEIT over $12,500 5. Total Prince Edward Island tax 5
4B 2013 PERSONAL INCOME TAX RATES Newfoundland and Labrador Tax Calculation 1. Calculate federal tax using the table below. 1. Calculate Nfld. and Labrador tax using the table below. Taxable Federal Tax Taxable Newfoundland and Labrador Tax $0 to $43,561 15.00% $0 to $33,748 7.70% Newfoundland and Labrador Residents $33,748 to $67,496 $2,599 plus 12.50% of the amount over $33,748 $67,496 and over $6,818 plus 13.30% of the amount over $67,496 2. Reduce tax by total personal tax credits. See page 15 for details. 2. Reduce tax by total personal tax credits. 3. Total Newfoundland and Labrador tax See page 14 for details. 3. Total federal tax Yukon Tax Calculation 1. Calculate federal tax using the table below. 1. Calculate Yukon tax using the table below. Taxable Federal Tax Taxable Yukon Tax $0 to $43,561 15.00% $0 to $43,561 7.04% Yukon Residents $43,561 to $87,123 $3,067 plus 9.68% of the $87,123 to $135,054 $7,284 plus 11.44% of the $135,054 and over $12,767 plus 12.76% of the 2. Reduce tax by total personal tax credits. 2. Reduce tax by total personal tax credits. See page 14 for details. See page 15 for details. 3. Total federal tax 3. Basic Yukon tax (BYT) 4. Add: Yukon surtax 5.00% of BYT over $6,000 5. Total Yukon tax Northwest Territories Tax Calculation 1. Calculate federal tax using the table below. 1. Calculate N.W.T. tax using the table below. Taxable Federal Tax Taxable Northwest Territories Tax $0 to $43,561 15.00% $0 to $39,453 5.90% Northwest Territories Residents $39,453 to $78,908 $2,328 plus 8.60% of the amount over $39,453 $78,908 to $128,286 $5,721 plus 12.20% of the amount over $78,908 $128,286 and over $11,745 plus 14.05% of the amount over $128,286 2. Reduce tax by total personal tax credits. 2. Reduce tax by total personal tax credits. See page 14 for details. See page 15 for details. 3. Total federal tax 3. Total Northwest Territories tax 6
5B 2013 PERSONAL INCOME TAX RATES Nunavut Tax Calculation 1. Calculate federal tax using the table below. 1. Calculate Nunavut tax using the table below. Taxable Federal Tax Taxable Nunavut Tax $0 to $43,561 15.00% $0 to $41,535 4.00% Nunavut Residents $41,535 to $83,071 $1,661 plus 7.00% of the amount over $41,535 $83,071 to $135,054 $4,569 plus 9.00% of the amount over $83,071 $135,054 and over $9,247 plus 11.50% of the 2. Reduce tax by total personal tax credits. 2. Reduce tax by total personal tax credits. See page 14 for details. See page 15 for details. 3. Total federal tax 3. Total Nunavut tax ONTARIO HEALTH PREMIUM TAX Ontario health premiums are based on an individual s taxable income level, similar to personal income tax rates, and the premiums increase at higher levels of taxable income, as set out in the chart below. Ontario Health Premiums for Ontario Residents Taxable Up to $20,000 $20,000 - $25,000 $25,000 - $36,000 $36,000 - $38,500 $38,500 - $48,000 $48,000 - $48,600 $48,600 - $72,000 $72,000 - $72,600 $72,600 - $200,000 $200,000 - $200,600 More than $200,600 2013 Rates -- 6% of TI** over $20,000 $300 $300 plus 6% of TI over $36,000 $450 $450 plus 25% of TI over $48,000 $600 $600 plus 25% of TI over $72,000 $750 $750 plus 25% of TI over $200,000 $900 ** TI = taxable income 7
6B 2013 COMBINED FEDERAL AND PROVINCIAL/TERRITORIAL TAX BRACKETS Use the following tables (pages 8 to 11) to estimate combined federal and provincial/territorial tax and effective combined tax rates on regular income, dividends and capital gains. Tax rates and amounts include surtaxes where applicable. Reduce the tax by your total federal and provincial/territorial tax credits (see pages 14 to 16). Note that provincial/territorial tax reductions at lower levels of income have not been included. British Columbia Taxable Range Alberta 0 37,568 0 20.06 0.00 4.16 10.03 37,568 43,561 7,536 22.70 0.00 7.46 11.35 43,561 75,138 8,896 29.70 9.63 16.21 14.85 75,138 86,268 18,274 32.50 10.32 19.71 16.25 86,268 87,123 21,891 34.29 12.79 21.95 17.15 87,123 104,754 22,184 38.29 18.31 26.95 19.15 104,754 135,054 28,935 40.70 21.64 29.96 20.35 135,054 and over 41,267 43.70 25.78 33.71 21.85 Taxable Range 0 43,561 0 25.00 0.00 10.21 12.50 43,561 87,123 10,890 32.00 9.63 18.96 16.00 87,123 135,054 24,830 36.00 15.15 23.96 18.00 135,054 and over 42,085 39.00 19.29 27.71 19.50 Saskatchewan Taxable Range Manitoba 0 42,906 0 26.00 0.00 10.83 13.00 42,906 43,561 11,156 28.00 2.76 13.33 14.00 43,561 87,123 11,339 35.00 12.39 22.08 17.50 87,123 122,589 26,586 39.00 17.91 27.08 19.50 122,589 135,054 40,418 41.00 20.67 29.58 20.50 135,054 and over 45,529 44.00 24.81 33.33 22.00 Taxable Range ) ) ) ) 0 31,000 0 25.80 3.86 13.40 12.90 31,000 43,561 7,998 27.75 6.56 15.83 13.88 43,561 67,000 11,484 34.75 16.19 24.58 17.38 67,000 87,123 19,629 39.40 22.60 30.40 19.70 87,123 135,054 27,557 43.40 28.12 35.40 21.70 135,054 and over 48,359 46.40 32.26 39.15 23.20 8
7B 2013 COMBINED FEDERAL AND PROVINCIAL/TERRITORIAL TAX BRACKETS (See note on page 8.) Ontario (does not include Ontario Health Premiums) Taxable Range Québec 0 39,723 0 20.05 0.00 2.77 10.03 39,723 43,561 7,964 24.15 3.80 7.90 12.08 43,561 69,958 8,891 31.15 13.43 16.65 15.58 69,958 79,448 17,114 32.98 14.19 17.81 16.49 79,448 82,418 20,244 35.39 17.51 20.82 17.70 82,418 87,123 21,295 39.41 19.88 23.82 19.71 87,123 135,054 23,149 43.41 25.40 28.82 21.71 135,054 509,000 43,956 46.41 29.54 32.57 23.21 509,000 and over 217,503 49.53 33.85 36.47 24.77 Taxable Range 0 41,095 0 28.53 5.66 11.74 14.27 41,095 43,561 11,724 32.53 11.18 16.74 16.27 43,561 82,190 12,526 38.37 19.22 24.05 19.19 82,190 87,123 27,348 42.37 24.74 29.05 21.19 87,123 100,000 29,438 45.71 29.35 33.22 22.86 100,000 135,054 35,324 47.46 31.76 35.41 23.74 135,054 and over 51,961 49.97 35.22 38.54 24.99 New Brunswick Taxable Range ) ) ) 0 38,954 0 24.39 0.00 7.20 12.20 38,954 43,561 9,501 28.46 2.01 12.28 14.23 43,561 77,908 10,812 35.46 11.65 21.03 17.73 77,908 87,123 22,991 36.46 13.03 22.28 18.23 87,123 126,662 26,351 40.46 18.55 27.28 20.23 126,662 135,054 42,348 42.07 20.77 29.30 21.04 135,054 and over 45,879 45.07 24.91 33.05 22.54 9
8B 2013 COMBINED FEDERAL AND PROVINCIAL/TERRITORIAL TAX BRACKETS (See note on page 8.) Nova Scotia Taxable Range 0 29,590 0 23.79 0.00 3.45 11.90 29,590 43,561 7,039 29.95 8.42 11.15 14.98 43,561 59,180 11,223 36.95 18.05 19.90 18.48 59,180 87,123 16,994 38.67 20.42 22.05 19.34 87,123 93,000 27,800 42.67 25.94 27.05 21.34 93,000 135,054 30,308 43.50 27.09 28.08 21.75 135,054 150,000 48,601 46.50 31.23 31.83 23.25 150,000 and over 55,551 50.00 36.06 36.21 25.00 Prince Edward Island Taxable Range 0 31,984 0 24.80 0.00 10.71 12.40 31,984 43,561 7,932 28.80 4.55 15.71 14.40 43,561 63,969 11,266 35.80 14.19 24.46 17.90 63,969 87,123 18,572 38.70 18.19 28.08 19.35 87,123 98,145 27,533 42.70 23.71 33.08 21.35 98,145 135,054 32,239 44.37 24.56 34.81 22.19 135,054 and over 48,616 47.37 28.70 38.56 23.69 Newfoundland and Labrador Taxable Range ) ) ) 0 33,748 0 22.70 0.00 5.46 11.35 33,748 43,561 7,661 27.50 2.07 11.46 13.75 43,561 67,496 10,360 34.50 11.70 20.21 17.25 67,496 87,123 18,618 35.30 12.81 21.21 17.65 87,123 135,054 25,546 39.30 18.33 26.21 19.65 135,054 and over 44,382 42.30 22.47 29.96 21.15 10
9B 2013 COMBINED FEDERAL AND PROVINCIAL/TERRITORIAL TAX BRACKETS (See note on page 8.) Yukon Taxable Range 0 43,561 0 22.04 0.00 5.24 11.02 43,561 81,888 9,601 31.68 9.63 17.29 15.84 81,888 87,123 21,743 32.16 9.63 17.61 16.08 87,123 135,054 23,427 38.01 15.15 24.92 19.01 135,054 and over 41,647 42.40 19.29 30.40 21.20 Northwest Territories Taxable Range Nunavut 0 39,453 0 20.90 0.00 2.08 10.45 39,453 43,561 8,246 23.60 0.00 5.33 11.80 43,561 78,908 9,215 30.60 9.63 14.08 15.30 78,908 87,123 20,031 34.20 10.60 18.58 17.10 87,123 128,286 22,841 38.20 16.12 23.58 19.10 128,286 135,054 38,565 40.05 18.67 25.90 20.03 135,054 and over 41,276 43.05 22.81 29.65 21.53 Taxable Range 0 41,535 0 19.00 0.00 2.08 9.50 41,535 43,561 7,892 22.00 2.06 5.83 11.00 43,561 83,071 8,338 29.00 11.69 14.58 14.50 83,071 87,123 19,796 31.00 14.45 17.08 15.50 87,123 135,054 21,052 35.00 19.97 22.08 17.50 135,054 and over 37,828 40.50 27.56 28.96 20.25 Non-Resident Taxable Range ) ) ) ) 0 43,561 0 22.20 --- --- 11.10 43,561 87,123 9,671 32.56 --- --- 16.28 87,123 135,054 23,855 38.48 --- --- 19.24 135,054 and over 42,299 42.92 --- --- 21.46 11
10B 2013 PERSONAL TAX QUICK ESTIMATE TABLE Estimates include basic personal tax credits. For other tax credits, see pages 14 to 16. Low-income tax reductions and refundable provincial/territorial credits are not included. The Ontario Health Premium is also not included. Level B.C. Alta. Sask. Man. Ont. Qué. 10,000 - - - 121 22-15,000 833 594 594 1,255 868 657 20,000 1,836 1,585 1,868 2,545 1,871 2,083 25,000 2,839 2,835 3,168 3,835 2,873 3,510 30,000 3,842 4,085 4,468 5,125 3,876 4,936 35,000 4,845 5,335 5,768 6,493 4,878 6,362 40,000 5,913 6,585 7,068 7,880 5,892 7,788 45,000 7,148 7,936 8,511 9,368 7,200 9,455 50,000 8,633 9,536 10,261 11,106 8,758 11,373 55,000 10,118 11,136 12,011 12,843 10,315 13,292 60,000 11,603 12,736 13,761 14,581 11,873 15,210 65,000 13,088 14,336 15,511 16,318 13,430 17,129 70,000 14,573 15,936 17,261 18,195 14,989 19,047 75,000 16,058 17,536 19,011 20,165 16,638 20,966 80,000 17,679 19,136 20,761 22,135 18,300 22,884 85,000 19,304 20,736 22,511 24,105 20,173 24,915 90,000 21,112 22,451 24,376 26,191 22,259 27,130 95,000 23,027 24,251 26,326 28,361 24,430 29,416 100,000 24,941 26,051 28,276 30,531 26,600 31,701 105,000 26,862 27,851 30,226 32,701 28,771 34,074 110,000 28,897 29,651 32,176 34,871 30,941 36,447 115,000 30,932 31,451 34,126 37,041 33,112 38,820 120,000 32,967 33,251 36,076 39,211 35,282 41,193 125,000 35,002 35,051 38,074 41,381 37,453 43,566 135,054 39,093 38,670 42,197 45,744 41,817 48,337 150,000 (top for NS) 48,753 509,000 (top for ON) 215,364 Top Combined Marginal Rates Regular 43.70% 39.00% 44.00% 46.40% *49.53% 49.97% Eligible 25.78% 19.29% 24.81% 32.26% 33.85% 35.22% Ineligible 33.71% 27.71% 33.33% 39.15% 36.47% 38.54% Capital 21.85% 19.50% 22.00% 23.20% 24.77% 24.99% *Top rate between $135,054 and $509,000 is 46.41%. 12
11B 2013 PERSONAL TAX QUICK ESTIMATE TABLE (See note on page 12.) Level N.B. N.S. P.E.I. N.L. Y.T. N.W.T. Nunavut 10,000 57 134 225 119 - - - 15,000 1,121 1,167 1,309 1,099 873 680 696 20,000 2,341 2,357 2,549 2,234 1,975 1,725 1,646 25,000 3,560 3,546 3,789 3,369 3,077 2,770 2,596 30,000 4,780 4,761 5,029 4,504 4,179 3,815 3,546 35,000 5,999 6,259 6,389 5,699 5,281 4,860 4,496 40,000 7,262 7,756 7,829 7,074 6,383 5,920 5,446 45,000 8,785 9,354 9,370 8,550 7,624 7,201 6,600 50,000 10,558 11,202 11,160 10,275 9,208 8,731 8,050 55,000 12,331 13,049 12,950 12,000 10,792 10,261 9,500 60,000 14,104 14,911 14,740 13,725 12,376 11,791 10,950 65,000 15,877 16,845 16,560 15,450 13,960 13,321 12,400 70,000 17,650 18,778 18,495 17,195 15,544 14,851 13,850 75,000 19,423 20,712 20,430 18,960 17,128 16,381 15,300 80,000 21,217 22,645 22,365 20,725 18,712 17,950 16,750 85,000 23,040 24,579 24,300 22,490 20,311 19,660 18,239 90,000 24,978 26,628 26,350 24,371 22,088 21,485 19,905 95,000 27,001 28,777 28,485 26,336 23,989 23,395 21,655 100,000 29,024 30,952 30,651 28,301 25,889 25,305 23,405 105,000 31,047 33,127 32,870 30,266 27,790 27,215 25,155 110,000 33,070 35,302 35,088 32,231 29,691 29,125 26,905 115,000 35,093 37,477 37,307 34,196 31,591 31,035 28,655 120,000 37,116 39,652 39,525 36,161 33,492 32,945 30,405 125,000 39,139 41,827 41,744 38,126 35,392 34,855 32,155 135,054 43,342 46,200 46,205 42,077 39,214 38,821 35,674 150,000 (top for NS) 53,150 509,000 (top for ON) Top Combined Marginal Rates Regular 45.07% 50.00% 47.37% 42.30% 42.40% 43.05% 40.50% Eligible 24.91% 36.06% 28.70% 22.47% 19.29% 22.81% 27.56% Ineligible 33.05% 36.21% 38.56% 29.96% 30.40% 29.65% 28.96% Capital 22.54% 25.00% 23.69% 21.15% 21.20% 21.53% 20.25% 13
2013 PERSONAL TAX CREDITS FEDERAL AND PROVINCIAL/TERRITORIAL The following chart (pages 14 and 15) summarizes federal and provincial/territorial non-refundable tax credit amounts and rates. Where a threshold is indicated, income over the threshold reduces the credit amount listed. To determine your total non-refundable credits, add up the credits you're eligible for and apply the tax credit multiplier. Fed. B.C. (1) Alta. Sask. Man. Ont. (1) Qué. Tax Credit Multiplier 15.00% 5.06% 10.00% 11.00% 10.80% 5.05% 20.00% Personal $11,038 $10,276 $17,593 $15,241 $8,884 (13) $9,574 $11,195 Spouse/Common-law partner 11,038 (25) 8,860 17,593 15,241 8,884 8,129 Reduction threshold - 886-1,525-813 Eligible dependant 11,038 (25) 8,860 17,593 15,241 8,884 8,129 Reduction threshold - 886-1,525-813 Child/Dependant (17) Each dependant under 18 (2) 2,234 (25) - - 5,782 - - Each dependant under 6 (max.) (3) - - - - - - Age 6,854 4,421 4,903 4,643 (12) 3,728 4,674 2,410 Reduction - 15% of income over 34,562 32,911 36,497 34,562 27,749 34,798 32,480 (16) Disability Self 7,697 7,394 13,571 8,979 6,180 7,735 2,545 Dependant (maximum) (4) 12,187 11,708 23,755 17,958 9,785 12,246 - Disabled/infirm dependant (age 18 and over) 6,530 4,314 10,184 8,979 3,605 4,513 (18) Reduction threshold 6,548 6,872 6,728 6,371 5,115 6,414 Caregiver 4,490 (25) 4,314 10,185 8,979 3,605 4,513 (18) Reduction threshold 15,334 14,600 16,192 15,335 12,312 15,438 Pension income 2,000 1,000 1,355 1,000 1,000 1,324 2,140 (16) Education (and Textbook) (5) Full-time amount per month 465 200 684 400 400 515 - Part-time amount per month 140 60 205 120 120 154 - CPP (max. amount) 2,356 2,356 2,356 2,356 2,356 2,356 - EI (max. amount) (Québec residents, see page 17) 891 891 891 891 891 891 - Canada employment (max. amount) (6) 1,117 - - - - - (19) Other (7) Payment Payment Payment Payment Payment Payment Payment (20) Medical Reduction threshold 2,152 2,020 2,273 2,152 1,728 2,167 (21) Adoption expenses (max. amount) 11,669 11,669 12,033-10,000 11,680 (22) Fitness activity (max. amount) (8) 500 500 - (8) 500 (8) (8) If disabled 1,000 1,000-1,000 Children's arts/cultural activity (max) (9) 500 500 - (9) 500 (9) (9) If disabled 1,000 1,000-1,000 Transit amount - eligible expenditures - - - - - - Volunteer firefighters (10) 3,000 - - - - - (10) Home buyers 5,000 (11) - 10,000 - - - Charitable donations On first $200 (26) 15.00% 5.06% 10.00% 11.00% 10.80% 5.05% 20.00% On balance 29.00% 14.70% 21.00% 15.00% 17.40% 11.16% 24.00% Ineligible dividend tax credit - on actual amount received 16.67% 4.25% 4.38% 5.00% 2.19% 5.63% 10.00% Eligible dividend tax credit - on actual amount received 20.73% 13.80% 13.80% 15.18% 11.04% 8.83% 16.42% See page 16 for notes. (14) (15) (16) 14
13B 2013 PERSONAL TAX CREDITS FEDERAL AND PROVINCIAL/TERRITORIAL (See note on page 14.) i d ti N.B. 19 P.E.I. 11 19 N.W.T. 19 Nunavut 19 (1) N.S. (1) (1) N.L. (1) Y.T. (1) Tax Credit Multiplier 9.39% 8.79% 9.80% 7.70% 7.04% 5.90% 4.00% Personal $9,388 $8,481 $7,708 $8,451 $11,038 $13,546 $12,455 Spouse/Common-law partner 7,971 8,481 6,546 6,906 11,038 (25) 13,546 12,455 Reduction threshold 798 848 655 691 - - - Eligible dependant 7,971 8,481 6,294 6,906 11,038 (25) 13,546 12,455 Reduction threshold 798 848 629 691 - - - Child/Dependant Each dependant under 18 (2) - - - (24) - 2,234 (25) - - Each dependant under 6 (max.) (3) - 1,200 1,200 - - - 1,200 Age 4,584 4,141 3,764 5,395 6,854 6,626 9,341 Reduction - 15% of income over 34,124 30,828 28,019 29,563 34,562 34,562 34,562 Disability Self 7,600 7,341 6,890 5,703 7,697 10,985 12,455 Dependant (maximum) (4) 12,034 10,790 10,909 8,386 12,187 15,475 16,945 Disabled/infirm dependant (age 18 and over) 4,434 2,798 2,446 2,683 6,530 4,490 4,490 Reduction threshold 6,290 5,683 4,966 5,768 6,548 6,371 6,371 Caregiver 4,434 4,898 2,446 2,684 4,490 (25) 4,490 4,490 Reduction threshold 15,140 13,677 11,953 13,116 15,334 15,334 15,334 Pension income 1,000 1,173 1,000 1,000 2,000 1,000 2,000 Education (and Textbook) (5) Full-time amount per month 400 200 (23) 400 200 465 400 465 Part-time amount per month 120 60 120 60 140 120 140 CPP (max. amount) 2,356 2,356 2,356 2,356 2,356 2,356 2,356 EI (max. amount) (Québec residents, see page 17) 891 891 891 891 891 891 891 Canada employment (max. amount) (6) - - - - 1,117 - - Other (7) Medical Reduction threshold Payment 2,125 Payment 1,637 Payment 1,678 Payment 1,841 Payment 2,152 Payment 2,152 Payment 2,152 Adoption expenses (max. amount) - - - 11,405 11,669 - - Fitness activity (max. amount) (8) - 500 - - 500 - - If disabled - 500 - - 1,000 - - Children's arts/cultural activity (max) (9) - - - - 500 - - If disabled - - - - 1,000 - - Transit amount - eligible expenditures - - - - Same as fed. - - Volunteer firefighters (10) - (10) (10) 3,000 - - 548 Home buyers - - - - - - - Charitable donations On first $200 9.39% 8.79% 9.80% 7.70% 7.04% 5.90% 4.00% On balance 17.95% 21.00% 16.70% 13.30% 12.76% 14.05% 11.50% Ineligible dividend tax credit - on actual amount received 6.63% 9.63% 3.63% 6.25% 5.65% 7.50% 5.00% Eligible dividend tax credit - on actual amount received 16.56% 12.21% 14.49% 15.18% 20.81% 15.87% 7.60% See page 16 for notes. 15
14B 2013 PERSONAL TAX CREDITS FEDERAL AND PROVINCIAL/TERRITORIAL Notes: (1) A low-income tax reduction or credit is provided by several provinces/territories. (2) The federal Child Tax Credit is provided for each child under the age of 18 years at the end of the taxation year. The Y.T. follows this federal credit. Sask. has a similar credit. (3) N.S., P.E.I. and Nunavut each provide a tax credit to fully or partially offset the income inclusion of the Universal Child Care Benefit (UCCB). (4) The credit is for minor dependants and is subject to a reduction based on child care and attendant care expenses. (5) The federal, Y.T. and Nunavut Textbook Tax Credits have been added to their respective Education Credit amount ($65 per month for full-time; $20 per month for part-time). (6) The credit is based on the lesser of $1,117 and the taxpayer's employment income for the year. (7) Other amounts include qualifying tuition fees paid and interest paid on student loans. (8) The federal Children s Fitness Tax Credit is based on eligible fees paid in the year for the enrolment of a child under 16 years of age at the beginning of the year in an eligible program of physical activity. For children under 18 years of age at the beginning of the year who qualify for the disability tax credit, the federal amount will be based on a higher maximum. The Yukon follows the federal credit. B.C., Sask., Man., Ont. and N.S. also provide a credit (refundable in Sask. and Ont.) for similar purposes, based on eligible fees in qualified programs for eligible individuals as defined by the province. Starting in 2013, Qué. has introduced a similar refundable credit. (9) The federal Children's Arts Tax Credit is based on eligible fees paid in the year for the enrolment of a child, who is under 16 years of age at the beginning of the year, in an eligible program of artistic, cultural, recreational or developmental activities. For children under 18 years of age at the beginning of the year who qualify for the disability tax credit, the federal amount will be based on a higher maximum. The Yukon follows the federal credit. B.C., Sask., Man. and Ont. also provide a credit (refundable in Sask. and Ont.) for similar purposes, based on eligible amounts in qualified programs for eligible individuals as defined by the province. Starting in 2013, Qué. has introduced a similar refundable credit. (10) The federal Volunteer Firefighters Tax Credit allows eligible volunteer firefighters performing at least 200 hours of volunteer firefighting services in a taxation year to claim a tax credit. Qué., P.E.I., N.L. and Nunavut also have a similar credit (refundable in P.E.I.). N.S. has a refundable tax credit for volunteer firefighters and ground search and rescue workers. (11) B.C. is providing a temporary First-Time New Home Buyers Bonus. This amount is a one-time refundable personal income tax credit worth up to $10,000 and was effective Feb. 21, 2012 to Mar. 31, 2013. Eligible individuals must apply to the B.C. Ministry of Finance to receive this payment. (12) Every senior who resides in Sask. can claim the senior supplementary amount of $1,226, regardless of their net income. (13) For 2008 and later years, further personal amounts are available in the form of the Manitoba Family Tax Benefit which are then reduced by 9% of the taxpayer s net income. (14) Under Qué. s non-refundable tax credit system, certain unused personal credits of either spouse are transferable to the other spouse. (15) Qué. offers a credit for an individual living alone (other than with a minor person or an eligible student) - credit amount $1,310; an individual living with an eligible student as a single-parent family may add an amount of $1,625 if certain criteria are met (see note 16 below). (16) The sum of the Qué. pension credit amount, age amount and living alone or with a dependent amount is subject to a reduction of 15% of family net income over $32,480. (17) Qué. offers the following credits for dependants: Amount for minor child engaged in full-time professional training/post secondary studies - $2,065 per term (maximum 2 terms; amount reduced by 80% of child's net income for the year calculated without including any scholarships, fellowships or awards received during the year). Amount for full-time student 18 years or older transfer mechanism to either parent for unused portion of basic tax credit amount (maximum of $7,380 for 2013; the amount for transfer is subject to reductions where certain situations exist and is reduced by 80% of child s Qué. taxable income for the year). Amount for other adult dependants (non-spouse) is $3,005 (no infirmity test) and is reduced by 80% of the dependant s net income for the year calculated without including any scholarships, fellowships or awards received during the year. (18) The tax credit respecting a dependent child with an impairment was replaced, as of the 2006 taxation year, by an improved supplement for handicapped children. The various measures for natural caregivers of adults were replaced by a refundable tax credit as of the 2006 taxation year. (19) Québec has a non-refundable tax credit for workers who are 65 years of age or older. The credit is available on eligible work income that exceeds $5,000 and is based on an amount of $3,000 for 2013. Québec also provides a non-refundable tax credit for recent graduates working in remote resource regions. (20) Québec provides a non-refundable tax credit for certain union, professional or other dues paid in the tax year by a taxpayer (or if paid for the taxpayer and included in income) provided the amounts were related to employment in the year. (21) Medical expenses eligible for Qué. s medical credit must be reduced by 3% of family net income (i.e. total of both spouses). There is no maximum amount which will limit the reduction amount as there is with other jurisdictions. A non-refundable credit is also available for expenses incurred to obtain medical services not available in an individual s local area where certain conditions are met. (22) Qué. provides a refundable tax credit with respect to eligible expenses incurred to adopt a child where certain conditions are met. This credit is equal to 50% of the eligible expenses to a maximum credit of $10,000 per child. (23) P.E.I. provides a Teacher School Supply Tax Credit to eligible teachers, child care facility supervisors or program staff for expenses incurred in purchasing eligible school supplies with their own money, based on the amount of supplies purchased up to a maximum of $500 incurred in the year. (24) N.L. provides a non-refundable Child Care Tax Credit based on the amount of eligible child care expenses deductible from income for federal tax purposes. (25) The federal and Y.T. governments provide for a higher spouse or common-law partner amount, eligible dependant amount, child amount and caregiver amount (an additional $2,040 for 2013) if the claim is in respect of an individual who is infirm. (26) A new temporary federal First-Time Donor s Super Credit is available to be claimed once in the taxation years 2013 through 2017 to enhance the existing charitable donation tax credit for donations made by a first-time donor (i.e. if neither the individual nor the individual s spouse or common-law partner has claimed either of the charitable donation tax credit or the first-time donor s super credit in any year after 2007). This credit provides an additional 25% credit for up to $1,000 of monetary donations made on or after March 21, 2013. 16
15B RRSP CONTRIBUTION LIMITS (1) Year Dollar Limit Level (2) 2012 $22,970 $127,611 2013 $23,820 $132,333 2014 2015 $24,270 Indexed $134,833 Indexed (1) RRSP Contribution Limit for a year is the lesser of the dollar limit for that year and 18% of the prior year's earned income, less any pension adjustment for the prior year (reported on your T4). (2) Earned income needed in prior year for maximum contribution. RPP AND DPSP LIMITS Year Defined Benefit RPP (1) Money Purchase RPP (2) 2012 $2,647 $23,820 2013 $2,697 $24,270 2014 Indexed Indexed (1) Maximum pension benefit per year of service. (2) Annual contribution limit. Note: The DPSP limit is one-half of the money purchase RPP annual contribution limit. 2013 EMPLOYMENT INSURANCE RATES AND PREMIUMS Maximum Yearly Insurable Earnings Employee's Premium Rate Employer's Premium Rate Maximum Yearly Employee Premium Maximum Yearly Employer Premium All provinces except Québec $47,400 1.88% 2.632% $891.12 $1,247.57 Québec $47,400 1.52% 2.128% $720.48 $1,008.67 2013 QUÉBEC PARENTAL INSURANCE RATES AND PREMIUMS Maximum Yearly Insurable Earnings Employee's/ Individual's Premium Rate Employer's Premium Rate Maximum Yearly Employee/ Individual Premium Maximum Yearly Employer Premium Salaried $67,500 0.559% 0.782% $377.33 $527.85 Self-employed $67,500 0.993% N/A $670.28 N/A 2013 CANADA PENSION PLAN RATES AND CONTRIBUTIONS Maximum Pensionable Earnings Basic Exemption Maximum Contributory Earnings Employee and Employer Rate Maximum Employee/ Employer Contribution Maximum Self- Employed Contribution $51,100 $3,500 $47,600 4.95% $2,356.20 $4,712.40 17
2013 CORPORATE INCOME TAX FACTS AND FIGURES The rates shown are nominal tax rates as at July 1, 2013. Add federal and provincial/territorial rates to get a combined rate. Rate and amount changes are set out in the notes and should be prorated for taxation years that straddle the effective dates (except where noted). Canadian-Controlled Private Corporations (CCPCs) Active Business (ABI) Rate Limit Investment Other Corporations Manufacturing & Processing Other Federal 11.00% $500,000 34.67% 15.00% 15.00% Provincial British Columbia 2.50 500,000 11.00 11.00 11.00 Alberta 3.00 500,000 10.00 10.00 10.00 Saskatchewan 2.00 500,000 12.00 10.00 12.00 Manitoba 0.00 400,000 12.00 12.00 12.00 Ontario 4.50 500,000 11.50 10.00 11.50 Québec 8.00 500,000 11.90 11.90 11.90 New Brunswick 4.50 500,000 12.00 12.00 12.00 Nova Scotia 3.50 400,000 16.00 16.00 16.00 Prince Edward Island 4.50 500,000 16.00 16.00 16.00 Newfoundland & Labrador 4.00 500,000 14.00 5.00 14.00 Yukon 4.00 500,000 15.00 2.50 15.00 Northwest Territories 4.00 500,000 11.50 11.50 11.50 Nunavut 4.00 500,000 12.00 12.00 12.00 Notes (changes before 2008 are not included): Federal The rate on active business income (ABI) up to the small business income (SBI) threshold is subject to a clawback if prior year s taxable capital for the Large Corporations Tax exceeds $10 million. The SBI threshold was increased from $400,000 to $500,000 effective Jan. 1, 2009. The rate on ABI up to the SBI threshold was reduced from 13.12% to 11.0% effective Jan. 1, 2008. 26 2/3% of investment income is eligible for refund at the rate of $1 for every $3 of dividends paid. Effective Jan. 1, 2008, the corporate surtax was eliminated for all businesses and the general federal tax rate on business income was reduced from 22.12% to 19.5%. The rate was reduced to 19.0% effective Jan. 1, 2009, to 18.0% effective Jan. 1, 2010, to 16.5% effective Jan. 1, 2011 and to 15.0% effective Jan. 1, 2012. Effective for taxation years that begin after Oct. 31, 2011, the federal rate on personal services business income increased to 28%. British Columbia Rate on ABI up to the SBI threshold was reduced from 4.5% to 3.5% effective Jul. 1, 2008 and to 2.5% effective Dec. 1, 2008. The SBI threshold was increased from $400,000 to $500,000 effective Jan. 1, 2010. Rate on other income was reduced from 12.0% to 11.0% effective Jul. 1, 2008, to 10.5% effective Jan. 1, 2010 and to 10.0% effective Jan. 1, 2011. The rate increased to 11.0% effective Apr. 1, 2013. Alberta The SBI threshold increased from $430,000 to $460,000 effective Apr. 1, 2008 and to $500,000 effective Apr. 1, 2009. Saskatchewan Rate on ABI up to the SBI threshold was reduced from 4.5% to 2.0% effective Jul. 1, 2011. The SBI threshold was increased from $450,000 to $500,000 effective Jul. 1, 2008. Rate on other income decreased from 13.0% to 12.0% effective Jul. 1, 2008. In the 2013 budget, the government committed to reduce the rate to 10.0% by 2015. The rate reduction will start when the government believes it is viable. Manitoba Rate on ABI up to the SBI threshold was reduced from 3.0% to 2.0% effective Jan. 1, 2008, to 1.0% effective Jan. 1, 2009 and was eliminated effective Dec. 1, 2010. The SBI threshold will increase to $425,000 effective Jan. 1, 2014. Rate on all other income was reduced from 14.0% to 13.0% effective Jul. 1, 2008 and to 12.0% effective Jul. 1, 2009. Ontario Rate on ABI up to the SBI threshold is reduced from 5.5% to 4.5% effective Jul. 1, 2010. Lower rate on ABI was subject to clawback based on taxable income over the SBI threshold at 4.25%. This clawback was eliminated effective Jul. 1, 2010. Rate on M&P income was reduced from 12.0% to 10.0% effective Jul. 1, 2010. Rate on all other income was reduced from 14.0% to 12.0% effective Jul. 1, 2010 and to 11.5% effective Jul. 1, 2011. The rate was set to be reduced to 11.0% effective Jul. 1, 2012 and to 10.0% effective Jul. 1, 2013; however, the rate reductions on those dates were cancelled and the rate will remain at 11.5% until the budget is balanced which is planned for 2017-18. (continued on next page) 18
17B Notes (changes before 2008 are not included): Québec The SBI threshold was increased from $400,000 to $500,000 effective Mar. 20, 2009. The small business rate is subject to a clawback if taxable capital exceeds $10 million. The rate on passive income was increased from 9.9% to 11.4% effective Jan. 1, 2008 and to 11.9% effective Jan. 1, 2009. The general rate on ABI was increased from 9.9% to 11.4% effective Jan. 1, 2008 and to 11.9% effective Jan. 1, 2009. New Brunswick Rate on ABI up to the SBI threshold was reduced from 5.0% to 4.5% effective Jan. 1, 2012. The SBI threshold was increased from $400,000 to $500,000 effective Jan. 1, 2009. Rate on all other income was reduced from 13.0% to 12.0% effective Jul. 1, 2009, to 11.0% effective Jul. 1, 2010 and to 10.0% effective Jul. 1, 2011. The rate increased to 12.0% effective Jul. 1, 2013. Nova Scotia Rate on ABI up to the SBI threshold was reduced from 5.0% to 4.5% effective Jan. 1, 2011, to 4.0% effective Jan. 1, 2012 and to 3.5% effective Jan. 1, 2013. The rate will be further reduced to 3.0% effective Jan. 1, 2014. The SBI threshold will decrease from $400,000 to $350,000 effective Jan. 1, 2014. Prince Edward Island Rate on ABI up to the SBI threshold was reduced from 4.3% to 3.2% effective Apr. 1, 2008, to 2.1% effective Apr. 1, 2009 and to 1.0% effective Apr. 1, 2010. The rate increased to 4.5% effective Apr. 1, 2013. The SBI threshold follows the federal SBI threshold (see federal notes). Newfoundland and Labrador Rate on ABI up to the SBI threshold was reduced from 5.0% to 4.0% and the change applies to corporations whose fiscal period began on or after Apr. 1, 2010. The SBI threshold follows the federal SBI threshold (see federal notes). Yukon The SBI threshold was increased from $400,000 to $500,000 effective Jan. 1, 2011. Rate for ABI from M&P activities is 2.5%. Northwest Territories The SBI threshold follows the federal SBI threshold (see federal notes). Nunavut The SBI threshold follows the federal SBI threshold (see federal notes). 2013 EMPLOYER PAYROLL TAX The following jurisdictions levy an employer payroll tax on remuneration for individuals employed in that jurisdiction. Tax rates for 2013 are listed below. This chart does not include certain other taxes paid by employees as a payroll deduction in N.W.T., Nunavut and Québec. Jurisdiction Payroll Tax Rates (%) Man. (1) 0-4.3 Ont. (2) 0.98-1.95 Qué. (3) 2.7-4.26 N.L. (4) 2.0 Notes: (1) Payroll of $0 to $1.25 million, no tax; from $1.25 million to $2.5 million, 4.3% of payroll over $1.25 million; over $2.5 million, 2.15% of total payroll. Associated corporations and certain corporate partnerships are deemed to be a single employer. (2) Rate of tax is 0.98% for payrolls that do not exceed $200,000 and 1.95% for payrolls over $400,000 (graduated rates apply for payrolls between the thresholds). First $400,000 of taxable payroll of an eligible employer (not associated) and of an associated group of eligible employers is exempt. (3) Rate of tax is 2.7% for payrolls up to $1 million and 4.26% for payrolls $5 million and above (graduated rates apply for payrolls between the two thresholds). Certain exemptions may apply. Associated employers must be considered when determining total payroll. (4) Tax is charged on payrolls over $1.2 million. Associated corporations and certain partnerships must share this exemption threshold. 2013 SALES TAX Jurisdiction (1) Sales Tax Rates (%) Combined Rates (%) Federal 5.0 -- B.C. (2) 7.0 12.0 Sask. 5.0 10.0 Man. (3) 7.0/8.0 12.0/13.0 Ont., N.B. & N.L. (4) 8.0 13.0 Qué. (5) 9.975 14.975 N.S. (6) 10.0 15.0 P.E.I. (7) 10.0/9.0 15.5/14.0 Notes: (1) Alberta, Nunavut, the Yukon and the Northwest Territories do not impose a sales tax. (2) The PST was re-implemented at 7% effective Apr. 1, 2013 to replace the HST of 12% (which consisted of a 5% GST component and a 7% provincial component). (3) The Manitoba PST rate increased to 8% effective Jul. 1, 2013. (4) Ontario, New Brunswick and Newfoundland & Labrador have harmonized their sales tax systems with the 5% GST to produce a combined federal/provincial rate of 13%. (5) The Québec system became harmonized with the GST effective Jan. 1, 2013, though two separate tax systems remain the GST and the amended QST. Note that effective Jan. 1, 2013, while QST no longer applies on the GST, the QST rate increased to 9.975%. (6) Nova Scotia has harmonized its sales tax system with the 5% GST to produce a combined federal/provincial rate of 15%. The provincial portion of the HST rate is to be reduced for a combined rate of 14% effective Jul. 1, 2014 and 13% effective Jul. 1, 2015. (7) Prince Edward Island implemented the HST effective Apr. 1, 2013 with a provincial rate of 9% to produce a combined federal/provincial rate of 14%. Prior to the implementation of the HST, Prince Edward Island levied a 10% PST on taxable goods (and services where applicable) on the actual cost including GST resulting in a combined federal/provincial rate of 15.5%. 19
18B 2013 CAPITAL TAXES The following jurisdictions levy capital tax on corporate taxable capital employed by a corporation doing business through a permanent establishment in their jurisdiction. Rules may vary for non-residents. The following rates are as at July 1, 2013. Note that the rates and rules discussed can vary where the corporation is related or associated with other corporations. Jurisdiction General (%) Financial Institutions (%) Federal -- (1) 1.25 (1) Sask. -- 0.7 and 3.25 (2) Man. -- (3) 4.0 or 5.0 (3) Qué. -- (4) -- (4) N.B. -- 4.0 (5) N.S. -- (6) 4.0 (6) P.E.I. -- 5.0 (7) N.L. -- 4.0 (8) Notes of recent changes: 1. Federal Financial Institutions Capital Tax applies at a single rate of 1.25% on taxable capital over $1 billion. 2. Sask. The tax rate for provincial commercial Crown corporations is generally 0.6%. A special surcharge applies on resource corporations and trusts. The capital tax is based on 0.7% on the first $1.5 billion of taxable capital and 3.25% on taxable capital over $1.5 billion. 3. Man. The general capital tax was eliminated for taxation years commencing after Dec. 31, 2010. Capital tax on banks, trust companies, and trust and loan companies increased to 4% from 3% effective for taxation years ending after Apr. 17, 2012 and to 5% effective for taxation years ending after Apr. 16, 2013. The rate for Crown corporations is 0.5%. There is an exemption from the capital tax for bank, trust and loan corporations with taxable paid-up capital under $4 billion effective for taxation years ending after Apr. 12, 2011. 4. Qué. The general capital tax was eliminated effective Jan. 1, 2011. The capital tax on financial institutions was eliminated on Jan. 1, 2011. A compensation tax on paid-up capital still applies for financial institutions. 5. N.B. The financial corporation capital tax increased to 4% from 3%, effective Apr. 1, 2012. This tax is levied on the taxable capital of financial institutions in excess of $10 million. 6. N.S. The general capital tax rate was eliminated effective Jul. 1, 2012. Prior to the elimination of the tax, no tax was payable on the first $5 million of taxable capital. If taxable capital was equal to or greater than $10 million, the rate was 0.05% with no deduction. The rate was reduced from 0.1% effective Jul. 1, 2011. If taxable capital was between $5 million and $10 million, the rate was doubled and applied after netting the $5 million deduction. Banks and trust and loan corporations are subject to capital tax of 4%. There is a general deduction from taxable paid-up capital of $500,000. For trust and loan companies with head office in Nova Scotia, there is a deduction of $30 million. 7. P.E.I. Banks and trust and loan corporations are subject to capital tax of 5% on taxable paid-up capital in excess of $2 million. 8. N.L. Capital tax of 4% is applied on banks and trust and loan companies. For companies with aggregate paid-up capital of $10 million or less, the first $5 million is exempt from tax. 20