Personal Tax Rates
Combined Federal and Personal Tax Rates for 2020 (British Columbia)
| Income | Salary/Interest | Capital Gains | Eligible Dividends | Regular Dividends |
|---|---|---|---|---|
| Up to $10,949 | 0.00% | 0.00% | 0.00% | 0.00% |
| $10,949 – $13,229 | 5.06% | 2.53% | 0.00% | 0.00% |
| $13,229 – $41,725 | 20.06% | 10.03% | -9.60% | 10.43% |
| $41,725 – $48,535 | 22.70% | 11.35% | -5.96% | 13.47% |
| $48,535 – $83,451 | 28.20% | 14.10% | 1.63% | 19.80% |
| $83,451 – $95,812 | 31.00% | 15.50% | 5.49% | 23.02% |
| $95,812 – $97,069 | 32.79% | 16.40% | 7.96% | 25.07% |
| $97,069 – $116,344 | 38.29% | 19.15% | 15.55% | 31.40% |
| $116,344 – $150,473 | 40.70% | 20.35% | 18.88% | 34.17% |
| $150,473 – $157,748 * | 43.70% | 21.85% | 23.02% | 37.62% |
| $157,748 – $214,368 * | 45.80% | 22.90% | 25.92% | 40.04% |
| $214,368+ | 49.80% | 24.90% | 31.44% | 44.64% |
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
Corporate Taxes
Corporate Tax Rates For Canadian Controlled Private Corporations
| Year | Small Business | Rate | Active Income | Rate | Investment** |
|---|---|---|---|---|---|
| 2015 | Up to $500,000 | 13.50% | Over $500,000 | 26.00% | 45.67% |
| 2016 | Up to $500,000 | 13.00% | Over $500,000 | 26.00% | 49.67% |
|
2017 |
Up to $500,000 |
13% or 12.50%*** |
Over $500,000 |
26.00%*** |
49.67% |
| 2018 | Up to $500,000 | 12% | Over $500,000 | 27.00% | 50.67% |
| 2019 | Up to $500,000 | 11% | Over $500,000 | 27.00% | 50.67% |
| 2020**** | Up to $500,000 | 11% | Over $500,000 | 27.00% | 50.67% |
** Investment tax rate includes refundable taxes of 30.67% which are refundable at 38 1/3% of taxable dividends paid for dividends received after December 31, 2015.
*** The provincial rate for small business income was reduced from 2.5% to 2% effective April 1, 2017.
**** The 2020 rate reflects the rate that had been substantively enacted as of December 31, 2019
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
Corporate and Personal Tax Analysis for 2020
Active Business Income |
|||
| Small Business Income | <500k | >500k | Investment Income |
|---|---|---|---|
| Income in Corp | 1,000.00 | 1,000.00 | 1,000.00 |
| Corporate Tax | (110.00) | (270.00) | (506.70) |
| Dividend Refund | — | — | 306.70 |
| Available for Dividend | 890.00 | 730.00 | 800.00 |
| Personal Taxes | (397.30) | (229.51) | (498.00) |
| Net After-Tax Cash | 492.70 | 500.49 | 442.88 |
| Income Earned Directly | 1,000.00 | 1,000.00 | 1,000.00 |
| Personal Taxes* | (498.00) | (498.00) | (357.12) |
| Net After-Tax Cash | 502.00 | 502.00 | 502.00 |
| Deferral of Taxes | 388.00 | 228.00 | (8.70) |
| Deferral of Tax as % of Income | 38.80% | 22.80% | -0.87% |
| Savings (Cost) | (9.30) | (1.51) | (59.12) |