$205 843 and over: marginal tax percentTo see how to compute the amount of taxes payable with this set of tax
brackets, we consider Christine, who has a taxable income of $125 000.
To the federal government she pays at a rate of 15 percent on the first
$46 605 of taxable income ($6991), at a rate of 20.5 percent on her next
$46 603 ($9554), and at a rate of 26 percent on her last $31 792 of income
($8266). Since her taxable income is less than $144 490, her income does
not enter the next two brackets and thus does not face the 29 or 33
percent tax rates. Christine’s total federal tax payable is therefore $24 811.
Recalling the definition of average and marginal tax rates, Christine’s
average tax rate is 000, or 19.8 percent. Her marginal tax
rate—the rate on an additional dollar of income—is 26 percent.
The Canada Revenue Agency, with headquarters in the Connaught
Building in Ottawa, is the government department that collects all federal
tax revenues in Canada.
Iceprotector/Shutterstock
rate= 33$ 24811 /$ 125