Federal Tax rates for 2009
- 15% on the first $38,832 of taxable income, +
- 22% on the next $38,832 of taxable income (on the portion of taxable income between $38,832 and $77,664), +
- 26% on the next $48,600 of taxable income (on the portion of taxable income between $77,664 and $126,264), +
- 29% of taxable income over $126,264.
Note
For 2009, the federal budget proposes to increase the upper taxable income thresholds of the 15% and 22% tax brackets. For more information about these proposed changes, see the questions and answers in CRA 2009 Budget News.
The chart below reproduces the first calculation that has to be made on Page 2 of Schedule 1 of the tax package to calculate net federal tax. Page 1 is used to calculate federal non-refundable tax credits.
| Use this column if your taxable income is $38,832 or less | Use this column if your taxable income is more than $38,832, but not more than $77,664 | Use this column if your taxable income is more than $77,664, but not more than $126,264 | Use this column if your taxable income is more than $126,264 | ||
| Enter your taxable income from line 260 of your return | 1 | ||||
| Base amount | − 0 | − 38,832 | − 77,664 | − 126,264 | 2 |
| Line 1 minus line 2 (this amount cannot be negative) | = | = | = | = | 3 |
| Federal tax rate | × 15% | × 22% | × 26% | × 29% | 4 |
| Multiply the amount on line 3 by the tax rate on line 4 | = | = | = | = | 5 |
| Tax on the amount from line 2 | + 0 | + 5,825 | + 14,368 | + 27,004 | 6 |
| Add lines 5 and 6 | = | = | = | = | 7 |
Source: Canada Revenue Agency