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Tax Grid

Average Tax Rate British Columbia

The amount of tax you pay depends on your total taxable income including your salary + bonus + Investment income + other income minus eligible deductions and tax credits such as RRSPs, donations, medical expenses, tuition, etc.

To help you figure out your tax rate, we have prepared this approximate tax grid. There are two tax rates you first need to know; the marginal tax rate and the average tax rate. Your marginal tax rate is the rate of tax you pay on the last dollar earned. It works by slices or bracket. The Average Tax Rate Is the rate of tax you pay on your whole income.

For example, if you earn a total of $50,000, your marginal tax rate is 31.15%, which is the rate you will pay for income above $36,378. You will not pay 31.15% on your entire $50,000; just on the “income above $36,378”. In fact, you will pay only 20.37% on your whole $50,000 which is your average tax rate.

If you sold an investment or earned extra income from self-employment or from a second employer where enough tax is not deducted, you need to save enough to cover your tax bill calculated by using the Marginal Tax rate.

Taxable income ranges
Marginal Rate (1)
Tax per threshold
Tax payable
Average Tax Rate
$ – $ 8,858
0.00%
$0
$0
0%
$ 8,859 – $ 14,941
15.25%
$928
$928
6%
$ 14,942 – $ 16,336
21.30%
$297
$1,225
7%
$ 16,337 – $ 26,558
24.90%
$2,545
$3,770
14%
$ 26,559 – $ 33,755
21.30%
$1,533
$5,303
16%
$ 33,756 – $ 36,378
24.40%
$640
$5,943
16%
$ 36,379 – $ 67,511
31.15%
$9,697
$15,640
23%
$ 67,512 – $ 72,756
33.70%
$1,767
$17,407
24%
$ 72,757 – $ 77,510
37.70%
$1,792
$19,199
25%
$ 77,511 – $ 94,121
39.70%
$6,594
$25,793
27%
$ 94,122 – $ 118,285
40.70%
$9,834
$35,627
30%
$ 118,285 and more
43.70%
     
Taxable income ranges      Tax payable (2) Average Tax Rate
$ 8,858 $0 0.00%
$ 10,000 $174 1.74%
$ 20,000 $2,137 10.69%
$ 30,000 $4,503 15.01%
$ 40,000 $7,071 17.68%
$ 50,000 $10,186 20.37%
$ 60,000 $13,301 22.17%
$ 70,000 $16,479 23.54%
$ 80,000 $20,189 25.24%
$ 90,000 $24,159 26.84%
$ 100,000 $28,187 28.19%
$ 120,000 $36,379 30.32%
$ 150,000 $49,489 32.99%
$ 200,000 $71,339 35.67%
$ 250,000 $93,189 37.28%
Taxes saved per $1000 of RRSP
Income    Tax saved
$ 20,000 $ 249.00
$ 30,000 $ 213.00
$ 40,000 $ 311.50
$ 50,000 $ 311.50
$ 60,000 $ 311.50
$ 70,000 $ 337.00
$ 80,000 $ 397.00
or more than $ 118,286 $ 437.00

Earnst & Young has a great tax calculator which you can use to estimate your taxes.