2015 PERSONAL AND CORPORATE TAX RATES
On a personal tax basis, the marginal tax rates for 2015 are effectively lower than 2014, due to a continuing
increase in the federal and provincial tax bracket limits. For 2014, the first two federal tax brackets were
increased to $44,700 and $89,401 respectively, and the top tax bracket increased to $138,587, up from $136,270
in 2014. BC introduced a temporary personal income tax bracket for 2014 and 2015 of 16.8% on taxable income
in excess of $150,000.
The maximum annual contribution limit is $24,930 for RRSP’s and $5,500 for TFSA’s.
For those with investment income, tax on regular dividends is lower than the tax on capital gains until
personal income exceeds $44,700, after which capital gains become the less expensive option, based on the tax
rates in Table 1. Eligible dividends receive a 38% “gross up” and are eligible for a 20.73% tax credit and have a
negative marginal tax rate until personal income exceeds $44,700. Small business dividends are subject to a
“gross up” of 18% and receive a 13% dividend tax credit.
Maximum CPP retirement payments are $12,780 ($1,065 per month). The maximum CPP post-retirement
benefit is $320 ($27 per month) for contributions made after you begin to receive the retirement pension, CPP
contributions are mandatory until age 65.
Maximum OAS payments for the year are $6,765 ($564 per month). For 2015, OAS claw back begins at an
income threshold of $72,809, and is completely eliminated once a pensioner’s net income exceeds $117,908.
For 2015, BC has the ninth lowest top marginal tax rate of the 13 Provinces and Territories with Alberta,
Nunavut, Yukon, Ontario, Newfoundland/Labrador, Northwest Territories, Saskatchewan and Prince Edward
Island, being lower.
The small business limit for corporate tax rates remains unchanged at $500,000.
Table 1 – 2015 Personal Tax Rates
Taxable Income
0 - 37,869
37,870 - 44,700
44,701 - 75,739
75,740 - 86,958
86,959 - 89,401
89,402 - 105,592
105,593 - 138,587
138,588 - 150,000
150,001 and above
1.
Salary & Interest
20.06%
22.70%
29.70%
32.50%
34.29%
38.29%
40.70%
43.70%
45.80%
Small Business
Dividends1
7.61%
10.73%
18.99%
22.29%
24.40%
29.12%
31.97%
35.51%
37.98%
Eligible
Dividends1
(6.84)%
(3.20)%
6.46%
10.32%
12.79%
18.31%
21.64%
25.78%
28.68%
Capital Gains
10.03%
11.35%
14.85%
16.25%
17.15%
19.15%
20.35%
21.85%
22.90%
Marginal tax rate is for actual amount of dividends received (not the “gross-up” taxable amount).
Table 2 – 2015 Corporate Tax Rates (Canadian Controlled Private Corporations – CCPC)
$0 – $500,000
General
M&P
Inactive2
Federal
Provincial
11.00%
2.50%
15.00%
11.00%
15.00%
11.00%
34.67%
11.00%
Total
13.50%
26.00%
26.00%
45.67%
2.
26.67% of the 45.67% tax paid on inactive business income is refundable upon payment of dividends, resulting in
net tax payable of 19.00%.
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