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Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Full Document:  

Act current to 2021-09-11 and last amended on 2021-07-01. Previous Versions

PART IIncome Tax (continued)

DIVISION EComputation of Tax

SUBDIVISION ARules Applicable to Individuals

Marginal note:Tax payable under this Part

  •  (1) For the purposes of this Division, except section 120 (other than subparagraph (a)(ii) of the definition tax otherwise payable under this Part in subsection 120(4)), tax payable under this Part, tax otherwise payable under this Part and tax under this Part shall be computed as if this Part were read without reference to Division E.1.

  • Marginal note:Rates for taxation years after 2015

    (2) The tax payable under this Part by an individual on the individual’s taxable income or taxable income earned in Canada, as the case may be (in this Subdivision referred to as the “amount taxable”) for a taxation year is

    • (a) 15% of the amount taxable, if the amount taxable is equal to or less than the amount determined for the taxation year in respect of $45,282;

    • (b) if the amount taxable is greater than $45,282, but is equal to or less than $90,563, the maximum amount determinable in respect of the taxation year under paragraph (a), plus 20.5% of the amount by which the amount taxable exceeds $45,282 for the year;

    • (c) if the amount taxable is greater than $90,563, but is equal to or less than $140,388, the maximum amount determinable in respect of the taxation year under paragraph (b), plus 26% of the amount by which the amount taxable exceeds $90,563 for the year;

    • (d) if the amount taxable is greater than $140,388, but is equal to or less than $200,000, the maximum amount determinable in respect of the taxation year under paragraph (c), plus 29% of the amount by which the amount taxable exceeds $140,388 for the year; and

    • (e) if the amount taxable is greater than $200,000, the maximum amount determinable in respect of the taxation year under paragraph (d), plus 33% of the amount by which the amount taxable exceeds $200,000 for the year.

  • Marginal note:Tax payable — WITB advance payment

    (2.1) The tax payable under this Part on the individual’s taxable income for a taxation year, as computed under subsection (2), is deemed to be the total of the amount otherwise computed under that subsection and, except for the purposes of sections 118 to 118.9, 120.2, 121, 122.3 and Subdivision C, the total of all amounts received by the individual in respect of the taxation year under subsection 122.7(7).

  • Marginal note:Minimum thresholds for 2004

    (3) Each of the amounts of $30,754, $61,509 and $100,000 referred to in subsection (2) is deemed, for the purposes of applying subsection (2) to the 2004 taxation year, to be the greater of

    • (a) the amount that would be used for the 2004 taxation year if this section were read without reference to this subsection, and

    • (b) in the case of

      • (i) the amount of $30,754, $35,000,

      • (ii) the amount of $61,509, $70,000, and

      • (iii) the amount of $100,000, $113,804.

  • (6) [Repealed, 2000, c. 19, s. 22]

  • (7) [Repealed, 1994, c. 7, Sch. VII, s. 6]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 1 (5th Supp.), s. 117
  • 1994, c.7, Sch. VII, s. 6
  • 2000, c. 19, s. 22
  • 2001, c. 17, s. 92
  • 2006, c. 4, s. 58
  • 2007, c. 2, s. 18, c. 35, ss. 34, 179
  • 2009, c. 2, s. 33
  • 2016, c. 11, s. 1
Annual Adjustment of Deductions and Other Amounts

Marginal note:Annual adjustment

  •  (1) Each specified amount in relation to tax payable under this Part or Part I.2 for a taxation year shall be adjusted so that the amount to be used for the year under the provision for which the amount is relevant is the total of

    • (a) the amount that would, but for subsection (3), be the amount to be used under the relevant provision for the preceding taxation year, and

    • (b) the product obtained by multiplying

      • (i) the amount referred to in paragraph (a)

      by

      • (ii) the amount, adjusted in such manner as may be prescribed and rounded to the nearest one-thousandth, or, where the result obtained is equidistant from two consecutive one-thousandths, to the higher thereof, that is determined by the formula

        (A/B) - 1

        where

        A
        is the Consumer Price Index for the 12 month period that ended on September 30 next before that year, and
        B
        is the Consumer Price Index for the 12 month period immediately preceding the period mentioned in the description of A.
  • (1.1) [Repealed, 2017, c. 20, s. 11]

  • Marginal note:Annual adjustment — amounts

    (2) For the purposes of subsection (1), each of the following amounts is a specified amount in relation to tax payable under this Part or Part I.2 for a taxation year:

    • (a) the amount of $300 referred to in subparagraph 6(1)(b)(v.1);

    • (b) the amount of $1,000 referred to in the formula in paragraph 8(1)(s);

    • (c) the amount of $400,000 referred to in the formula in paragraph 110.6(2)(a);

    • (d) each of the amounts expressed in dollars in subsection 117(2);

    • (e) each of the amounts expressed in dollars in the description of B in subsection 118(1);

    • (f) the amount of $12,298 in the description of A in subsection 118(1.1);

    • (g) the amount of $15,000 in paragraph (d) of the description of F in subsection 118(1.1);

    • (h) each of the amounts expressed in dollars in subsection 118(2);

    • (i) the amount of $1,000 referred to in subsection 118(10);

    • (j) the amount of $15,000 referred to in subsection 118.01(2);

    • (k) each of the amounts expressed in dollars in subsection 118.2(1);

    • (l) each of the amounts expressed in dollars in subsection 118.3(1);

    • (m) each of the amounts expressed in dollars in subsection 122.5(3);

    • (n) the amount of $2,500 referred to in subsection 122.51(1);

    • (o) each of the amounts expressed in dollars in subsection 122.51(2);

    • (p) the amount of $14,000 referred to in subsection 122.7(1.3);

    • (q) the amounts of $1,395 and $2,403 in the description of A, and each of the amounts expressed in dollars in the description of B, in subsection 122.7(2);

    • (r) the amount of $720 in the description of C, and each of the amounts expressed in dollars in the description of D, in subsection 122.7(3);

    • (s) the amount of $10,000 in the description of B in subsection 122.91(2); and

    • (t) each of the amounts expressed in dollars in Part I.2.

  • Marginal note:Rounding

    (3) Where an amount referred to in this section, when adjusted as provided in this section, is not a multiple of one dollar, it shall be rounded to the nearest multiple of one dollar or, where it is equidistant from two such consecutive multiples, to the higher thereof.

  • Marginal note:Consumer Price Index

    (4) In this section, the Consumer Price Index for any 12 month period is the result arrived at by

    • (a) aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, adjusted in such manner as is prescribed, for each month in that period;

    • (b) dividing the aggregate obtained under paragraph 117.1(4)(a) by twelve; and

    • (c) rounding the result obtained under paragraph 117.1(4)(b) to the nearest one-thousandth or, where the result obtained is equidistant from two consecutive one-thousandths, to the higher thereof.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 1 (5th Supp.), s. 117.1
  • 1994, c. 7, Sch. VII, s. 7
  • 1996, c. 21, s. 22
  • 1997, c. 25, s. 24
  • 1998, c. 19, s. 21
  • 1999, c. 22, s. 30
  • 2000, c. 14, s. 37, c. 19, s. 23
  • 2005, c. 19, s. 22
  • 2006, c. 4, s. 59
  • 2007, c. 2, s. 19, c. 16, ss. 2, 4, c. 35, s. 35
  • 2010, c. 25, s. 22
  • 2013, c. 40, s. 49
  • 2017, c. 20, s. 11
  • 2018, c. 12, s. 10
  • 2019, c. 29, s. 14
  • 2021, c. 23, s. 18
 
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