Income Tax Rates For The Year 2024 And 2023 - Federal And Ontario Income Tax
Indian Income Tax System - The Article 265 of the Constitution of India lays down that the Tax shall be levied with the “Authority of Law” which means with by the Legislative competence. The Constitution has conferred wider powers upon the Union government to collect the taxes and decide the manner to allocate and distribute to States.
The power to levy and collect income tax is conferred on the Union Government. Therefore the Union / Central Government have the power to levy and collect the Income Tax in India.
Canadian Income Tax System - On the other hand, the Canada’ constitution divided the power to levy the income tax between the Federal and the provincial legislatures. Therefore unlike India, in Canada the Income Tax is levied at Federal as well as at Provincial level, though the tax collection is generally managed at the Federal Government level through Canada Revenue Agency (CRA).
However the Income Tax rates in Canada are graduated or progressive tax rate system under which the tax rates are higher with the increase in taxable income so that higher income person should pay more taxes. The Tax is levied based on the Taxable Income which is divided into brackets at both Federal and Provincial level, though generally the tax rate at Provincial level are quite lower as compared to Federal Tax Rates.
All Taxpayers like Individuals, Corporate, Trust etc. have to pay both Federal as well as Provincial Income Tax.
Canadian Income Tax rates for 2024 for Individuals residing in Ontario at the end of the year:
For the sake of convenience and understanding, herein below are the income tax rates for the residents of ‘Ontario’ province for the Tax year 2024:
|
FEDERAL TAX RATE |
||
|
Taxable Income |
Tax Rate |
|
|
From (C$) |
To (C$) |
|
|
- |
55,867 |
15.00% |
|
55,868 |
111,733 |
20.50% |
|
111,734 |
173,205 |
26.00% |
|
173,206 |
246,752 |
29.00% |
|
246,753 |
& above |
33.00% |
|
ONTARIO TAX RATE |
||
|
Taxable Income |
Tax Rate |
|
|
From (C$) |
To (C$) |
|
|
- |
51,446 |
5.05% |
|
51,447 |
102,894 |
9.15% |
|
102,895 |
150,000 |
11.16% |
|
150,001 |
220,000 |
12.16% |
|
220,001 |
& above |
13.16% |
|
COMBINED TAX RATE (Federal plus Ontario) |
||
|
Taxable Income |
Tax Rate |
|
|
From (C$) |
To (C$) |
|
|
- |
51,446 |
20.05% |
|
51,447 |
55,867 |
24.15% |
|
55,868 |
102,894 |
29.65% |
|
102,895 |
111,733 |
31.66% |
|
111,734 |
150,000 |
37.16% |
|
150,001 |
173,205 |
38.16% |
|
173,206 |
220,000 |
41.16% |
|
220,001 |
246,752 |
42.16% |
|
246,753 |
& above |
46.16% |
Canadian Income Tax rates for 2023 for Individuals residing in Ontario residing in Ontario at the end of the year:
|
FEDERAL TAX RATE |
||
|
Taxable Income |
Tax Rate |
|
|
From (C$) |
To (C$) |
|
|
- |
53,359 |
15.00% |
|
53,360 |
106,717 |
20.50% |
|
106,718 |
165,430 |
26.00% |
|
165,431 |
236,675 |
29.00% |
|
236,676 |
& above |
33.00% |
|
ONTARIO TAX RATE |
||
|
Taxable Income |
Tax Rate |
|
|
From (C$) |
To (C$) |
|
|
- |
49,231 |
5.05% |
|
49,232 |
98,463 |
9.15% |
|
98,464 |
150,000 |
11.16% |
|
150,001 |
220,000 |
12.16% |
|
220,001 |
& above |
13.16% |
|
Combined Tax Rate (Federal plus Ontario) |
||
|
Taxable Income |
Tax Rate |
|
|
From (C$) |
To (C$) |
|
|
- |
49,231 |
20.05% |
|
49,232 |
53,359 |
24.15% |
|
53,360 |
98,463 |
29.65% |
|
98,464 |
106,717 |
31.66% |
|
106,718 |
150,000 |
37.16% |
|
150,001 |
165,430 |
38.16% |
|
165,431 |
220,000 |
41.16% |
|
2,20,001 |
236,675 |
42.16% |
|
236,676 |
& above |
46.16% |
The Author of the above Article is a CPA / Tax Accountant who is engaged in providing Accounting, Tax & other advisory service including issue of T4, T4A, T5 etc., T1 Tax Return Filing, T2 Tax Return filing, Payroll Accounting Services, Bookkeeping and Accounting Services, CFO Services, GST HST Consultant.