Solution-What total income taxes would pay in both provinces

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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What total income taxes would pay in both provinces

Reference no: EM132781018

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