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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%
* Starting at incomes of $150,473 the personal amount tax credit of $13,229 is decreased to $12,298. The above table does not reflect this reduction in the basic personal amount.


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)