Canada's federal tax system is administered and enforced by the Canada Revenue Agency (CRA). The federal government collects taxes on behalf of the provinces and territories, which have their own tax systems. In this article, we will discuss the federal tax brackets for the year 2014.
What are Tax Brackets?
Tax brackets are the ranges of income that are subject to different tax rates. The more you earn, the higher the tax rate you pay. Tax brackets are adjusted annually for inflation.
Federal Tax Brackets for 2014
The federal tax brackets for 2014 are shown in the table below:
| Taxable Income | Tax Rate |
|---|---|
| Up to $43,953 | 15% |
| $43,954 to $87,907 | 22% |
| $87,908 to $136,270 | 26% |
| Above $136,270 | 29% |
Note that these tax rates apply only to federal income tax. Provincial and territorial tax rates are additional.
Example Calculation
Let's say your taxable income for 2014 was $50,000. Here's how you would calculate your federal income tax:
- The first $43,953 is taxed at 15%, which comes out to $6,592.
- The remaining $6,047 is taxed at 22%, which comes out to $1,330.
- Your total federal income tax for 2014 would be $7,922.
Conclusion
Knowing your tax bracket can help you plan your finances and avoid surprises at tax time. Be sure to consult a tax professional if you have any questions about your taxes.