In Canada, a significant portion of your income goes to income tax, and Vancouver is no different. In BC your income is subject to both Federal Income tax, and Provincial Income tax.
The Canadian system works on a bracket system and credit system. This means that depending on your income you pay a certain percentage of tax. See the combined tax rate chart below for all the tax brackets.
Once your Vancouver taxes are calculated you then make deductions, called credits, reducing the amount of taxes you need to pay. Since tax credits vary based on numerous scenarios, we'll only demonstrate how to calculate your taxes using the personal exemption all tax payers get.
Both the Federal personal exemption and the Provincial personal exemption are currently indexed to inflation so they change every year, (generally increasing). The personal income exemptions for 2012 are as follows:
› Federal - $10,822
› Provincial (BC) - $11,354
Personal BC Income Tax Rate Samples (Estimate - 2012)
Income
|
Tax payable
|
After tax income
|
Average tax rate
|
$20,000
|
$1,478
|
$18,522
|
7.4%
|
$30,000
|
$3,804
|
$26,196
|
12.7%
|
$40,000
|
$5,905
|
$34,095
|
14.8%
|
$50,000
|
$8,685 |
$41,315 |
17.4% |
$60,000
|
$11,655 |
$48,345 |
19.4% |
$70,000
|
$14,625 |
$55,375 |
20.9% |
$80,000
|
$17,762 |
$62,238 |
22.2% |
$90,000
|
$21,285 |
$68,715 |
23.7% |
$100,000
|
$25,114 |
$74,886 |
25.1% |
$150,000
|
$45,915 |
$104,085 |
30.6% |
$200,000
|
$67,765 |
$132,235 |
33.9% |
$1,000,000
|
$417,365 |
$582,635 |
41.8% |
Calculating Your Vancouver BC Taxes
Using the chart at the bottom, which has the combined BC provincial and federal tax rates, we'll calculate the taxes owed on a salaried income of $66,000 as an example.
Gross income = $66,000/year
Vancouver taxes to pay for each bracket (combined rates):
› $37,013 at 20.06% = $7,425
› $5,694 (from $37,013 to $42,707) at 22.7% = $1,293
› $23,293 (from $42,707 to $66,000) at 29.7% = $6,918
Total tax before credits: $15,636
› Federal credit: $10,822 at 15% = $1,623
› Provincial credit (BC): $11,354 at 5.06% = $575
Total credit: $2,198
Total tax to pay after credits: $15,636 - $2,198 = $13,438
BC / Vancouver Income Tax Rates (Federal & Provincial Taxes combined)
| Income |
Tax Rate |
| first $37,013 |
20.06% |
| over $37,013 up to $42,707 |
22.70% |
| over $42,707 up to $74,028 |
29.70% |
| over $74,028 up to $84,993 |
32.50% |
| over $84,993 up to $85,414 |
34.29% |
| over $85,414 up to $103,205 |
38.29% |
| over $103,205 up to $132,406 |
40.70% |
| Over $132,406 |
43.70% |
Important Note: The information provided is only a guideline, and tax legislation can change year to year. Check with the Canadian Revenue Agency for the most up-to-date details.