What total income taxes would pay in both provinces

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Reference no: EM132781018

You are moving from NB to BC. Your regular $65,000 salary will be subject to BC taxes. As is the case in Canada and the provinces the first $15,000 of your income will not be subject to any taxes. Also, you expect to receive $2,000 in dividends and make $1,500 in profit in a stock sale. The tax tables are included below. Dividends are subject to a 38% gross up and the combined dividend tax credits for Nfld are 10% and 15% in BC. As well, capital gains are taxed at 50% of income.

Problem 1) What total income taxes would you pay in both provinces?

Problem 2) By how much (in dollars) will your net tax bill change from moving to BC from NB?

BC

Tax Rate

Tax
Bracket

NB

Cumulative

Income        Tax Rate

Tax
Bracket

Federal

Cumulative

Income        Tax Rate

Tax
Bracket

Cumulative
Income

5.06%

$ 37,606

 

9.68%

$ 39,305

 

15.00%

$ 43,953

 

7.07%

$ 37,607

$        75,213

14.82%

$ 39,304

$        78,609

22.00%

$ 43,954

$ 87,907

10.50%

$       11,141

$ 86,354

16.52%

$ 49,193

$ 127,802

26.00%

$ 48,363

$ 136,270

12.29%

$       18,504

$ 104,858

17.84%

$ 127,802

$ 255,604

29.00%

$136,270

$ 272,540

14.70%

$ 45,142

$ 150,000

 

 

 

 

 

 

16.80%

$ 150,000

$ 300,000

 

 

 

 

 

 

Reference no: EM132781018

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