In Canada, employees are subject to progressive income taxes, which means that the more you earn, the higher the tax rate. The federal government sets tax brackets, and the provinces and territories also have their own tax rates. The federal tax rate starts at 15% for the lowest income bracket and goes up to 33% for the highest bracket. The current federal tax rate for the lowest income bracket is 15% on the first $49,020 of taxable income, and the rate increases progressively as the income increases. The highest federal tax rate is 33% on the income over $214,368. Additionally, the provinces and territories have their own tax rates, which are added to the federal rate. This means that the overall tax rate can vary depending on where an employee lives. For example, the highest combined federal and provincial tax rate in Ontario is 53.53% for the income over $220,000. It's important to keep in mind that these tax rates are subject to change, and it's always recommended to check with the Canada Revenue Agency (CRA) for the most current information.
