Mackenzie Tax & Estate Planning
2025 tax facts
Tax brackets
The rates below are the combined federal and provincial marginal rates, including all surtaxes. It is assumed that the only credits claimed
are the basic personal amount and the Low Income Tax Reduction (LITR) where applicable. Individuals resident in British Columbia,
Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland & Labrador are subject to an LITR or equivalent
resulting in no provincial income tax up to a certain threshold and clawed back for income in excess until the reduction is eliminated,
resulting in a higher marginal tax rate for that income bracket. These rates are correct as at January 1, 2025 and do not reflect changes
resulting from federal or provincial announcements after that date.
Marginal tax rates (%)
Interest and Non-eligible Eligible Canadian
Capital gains
Taxable income regular income Canadian dividends dividends
Alberta 2025
First $16,128 - - - -
$16,129 – $22,322 15.00 7.50 6.87 -0.03
$22,323 – $57,375 25.00 12.50 15.86 2.57
$57,376 – $114,750 30.50 15.25 22.19 10.16
$114,751 – $151,234 36.00 18.00 28.51 17.75
$151,235 – $177,882 38.00 19.00 30.81 20.51
$177,883 – $181,481 41.32 20.66 34.62 25.09
$181,482 – $241,974 42.32 21.16 35.77 26.47
$241,975 – $253,414 43.32 21.66 36.92 27.85
$253,415 – $362,961 47.00 23.50 41.16 32.93
$362,962 and over 48.00 24.00 42.31 34.31
British Columbia 2025
First $16,128 - - - -
$16,129 – $24,045 15.00 7.50 6.87 -0.03
$24,046 – $25,019 20.06 10.03 10.44 -9.61
$25,020 – $40,814 23.62 11.81 14.53 -4.70
$40,815 – $49,279 20.06 10.03 10.44 -9.61
$49,280 – $57,375 22.70 11.35 13.48 -5.96
$57,376 – $98,560 28.20 14.10 19.81 1.63
$98,561 – $113,158 31.00 15.50 23.02 5.49
$113,159 – $114,750 32.79 16.40 25.08 7.96
$114,751 – $137,407 38.29 19.15 31.40 15.55
$137,408 – $177,882 40.70 20.35 34.17 18.88
$177,883 – $186,305 44.02 22.01 37.99 23.46
$186,306 – $253,414 46.12 23.06 40.40 26.35
$253,415 – $259,829 49.80 24.90 44.64 31.43
$259,830 and over 53.50 26.75 48.89 36.54
Ontario 2025
First $16,128 - - - -
$16,129 – $18,574 15.00 7.50 6.87 -0.03
$18,575 – $24,389 25.10 12.55 11.63 -13.69
$24,390 – $52,886 20.05 10.02 9.25 -6.86
$52,887 – $57,375 24.15 12.08 13.96 -1.20
$57,376 – $93,132 29.65 14.83 20.29 6.39
$93,133 – $105,775 31.48 15.74 22.39 8.92
$105,776 – $109,727 33.89 16.95 25.17 12.24
$109,728 – $114,750 37.91 18.96 29.78 17.79
$114,751 – $150,000 43.41 21.71 36.10 25.38
$150,001 – $177,882 44.97 22.49 37.90 27.53
$177,883 – $220,000 48.29 24.15 41.71 32.10
$220,001 – $253,414 49.85 24.93 43.51 34.26
$253,415 and over 53.53 26.77 47.74 39.34
Marginal tax rates (%)
Interest and Non-eligible Eligible Canadian
Capital gains
Taxable income regular income Canadian dividends dividends
Saskatchewan 2025
First $16,128 - - - -
$16,129 – $18,990 15.00 7.50 6.87 -0.03
$18,991 – $53,462 25.50 12.75 15.57 -0.72
$53,463 – $57,375 27.50 13.75 17.87 2.04
$57,376 – $114,750 33.00 16.50 24.20 9.63
$114,751 – $152,749 38.50 19.25 30.52 17.22
$152,750 – $177,882 40.50 20.25 32.82 19.98
$177,883 – $253,414 43.82 21.91 36.63 24.56
$253,415 and over 47.50 23.75 40.87 29.64
Manitoba 2025
First $16,128 - - - -
$16,129 – $16,545 15.00 7.50 6.87 -0.03
$16,546 – $22,943 26.77 13.39 19.50 5.18
$22,944 – $47,564 25.80 12.90 18.39 3.84
$47,565 – $57,375 27.75 13.88 20.63 6.53
$57,376 – $101,200 33.25 16.63 26.96 14.12
$101,201 – $114,750 37.90 18.95 32.31 20.53
$114,751 – $177,882 43.40 21.70 38.63 28.12
$177,883 – $200,000 46.72 23.36 42.44 32.70
$200,001 – $253,414 47.58 23.79 43.43 33.89
$253,415 – $400,000 51.26 25.63 47.66 38.97
$400,001 and over 50.40 25.20 46.68 37.78
Quebec 2025
First $16,128 - - - -
$16,129 – $18,571 12.52 6.26 5.74 -0.03
$18,572 – $53,255 26.52 13.26 17.91 3.14
$53,256 – $57,375 31.52 15.76 23.66 10.04
$57,376 – $106,495 36.12 18.06 28.94 16.39
$106,496 – $114,750 41.12 20.56 34.69 23.29
$114,751 – $129,590 45.71 22.86 39.97 29.62
$129,591 – $177,882 47.46 23.73 41.98 32.04
$177,883 – $253,414 50.24 25.12 45.16 35.87
$253,415 and over 53.30 26.65 48.70 40.11
New Brunswick 2025
First $16,128 - - - -
$16,129 – $21,918 15.00 7.50 6.87 -0.03
$21,919 – $48,654 27.40 13.70 17.97 -2.24
$48,655 – $51,306 24.40 12.20 14.52 -6.38
$51,307 – $57,375 29.00 14.50 19.81 -0.03
$57,376 – $102,614 34.50 17.25 26.14 7.56
$102,615 – $114,750 36.50 18.25 28.44 10.32
$114,751 – $177,882 42.00 21.00 34.76 17.91
$177,883 – $190,060 45.32 22.66 38.57 22.49
$190,061 – $253,414 48.82 24.41 42.60 27.32
$253,415 and over 52.50 26.25 46.84 32.40
Nova Scotia 2025
First $15,296 - - - -
$15,297 – $15,465 8.79 4.40 6.67 -0.08
$15,466 – $16,192 13.79 6.90 12.42 6.82
$16,193 – $21,651 28.79 14.40 19.29 6.79
$21,652 – $25,775 23.79 11.90 13.54 -0.11
$25,776 – $30,507 24.32 12.16 14.15 0.62
$30,508 – $57,375 30.48 15.24 21.23 9.12
$57,376 – $61,015 35.98 17.99 27.56 16.71
$61,016 – $77,325 37.70 18.85 29.54 19.09
$77,326 – $95,883 37.17 18.59 28.93 18.35
$95,884 – $114,750 38.00 19.00 29.88 19.50
$114,751 – $154,650 43.50 21.75 36.21 27.09
$154,651 – $177,882 47.00 23.50 40.23 31.92
$177,883 – $253,414 50.32 25.16 44.04 36.50
$253,415 and over 54.00 27.00 48.28 41.58
Marginal tax rates (%)
Interest and Non-eligible Eligible Canadian
Capital gains
Taxable income regular income Canadian dividends dividends
PEI 2025
First $16,128 - - - -
$16,129 – $17,394 15.00 7.50 6.87 -0.03
$17,395 – $22,499 24.50 12.25 16.30 -1.41
$22,500 – $29,499 29.50 14.75 22.05 5.49
$29,500 – $33,328 24.50 12.25 16.30 -1.41
$33,329 – $57,375 28.47 14.24 20.86 4.07
$57,376 – $64,656 33.97 16.99 27.19 11.66
$64,657 – $105,000 37.10 18.55 30.79 15.98
$105,001 – $114,750 38.12 19.06 31.96 17.39
$114,751 – $140,000 43.62 21.81 38.28 24.98
$140,001 – $177,882 45.00 22.50 39.87 26.88
$177,883 – $253,414 48.32 24.16 43.69 31.46
$253,415 and over 52.00 26.00 47.92 36.54
Newfoundland & Labrador 2025
First $16,128 - - - -
$16,129 – $23,928 15.00 7.50 6.87 -0.03
$23,929 – $30,922 39.70 19.85 31.60 25.37
$30,923 – $44,192 23.70 11.85 13.20 3.29
$44,193 – $57,375 29.50 14.75 19.87 11.29
$57,376 – $88,382 35.00 17.50 26.20 18.88
$88,383 – $114,750 36.30 18.15 27.69 20.67
$114,751 – $157,792 41.80 20.90 34.01 28.26
$157,793 – $177,882 43.80 21.90 36.31 31.02
$177,883 – $220,910 47.12 23.56 40.12 35.60
$220,911 – $253,414 49.12 24.56 42.42 38.36
$253,415 – $282,214 52.80 26.40 46.66 43.44
$282,215 – $564,429 53.80 26.90 47.81 44.82
$564,430 – $1,128,858 54.30 27.15 48.39 45.51
$1,128,859 and over 54.80 27.40 48.96 46.20
Northwest Territories 2025
First $16,128 - - - -
$16,129 – $17,841 15.00 7.50 6.87 -0.03
$17,842 – $51,964 20.90 10.45 6.76 -7.76
$51,965 – $57,375 23.60 11.80 9.86 -4.03
$57,376 – $103,930 29.10 14.55 16.19 3.56
$103,931 – $114,750 32.70 16.35 20.33 8.53
$114,751 – $168,967 38.20 19.10 26.65 16.12
$168,968 – $177,882 40.05 20.03 28.78 18.67
$177,883 – $253,414 43.37 21.69 32.59 23.25
$253,415 and over 47.05 23.52 36.83 28.33
Nunavut 2025
First $16,128 - - - -
$16,129 – $19,273 15.00 7.50 6.87 -0.03
$19,274 – $54,706 19.00 9.50 8.47 -2.11
$54,707 – $57,374 22.00 11.00 11.92 2.03
$57,375 – $109,413 27.50 13.75 18.25 9.62
$109,414 – $114,749 29.50 14.75 20.55 12.38
$114,750 – $177,880 35.00 17.50 26.87 19.97
$177,881 – $253,413 40.82 20.41 33.56 28.00
$253,414 and over 44.50 22.25 37.80 33.08
Yukon 2025
First $16,128 - - - -
$16,129 – $57,375 21.40 10.70 13.46 -7.79
$57,376 – $114,750 29.50 14.75 22.78 3.39
$114,751 – $177,882 36.90 18.45 31.28 13.60
$177,883 – $253,414 42.25 21.13 37.44 20.98
$253,415 – $500,000 45.80 22.90 41.52 25.88
$500,001 and over 48.00 24.00 44.04 28.92
The 2024 Federal Budget announced an increase in the capital gains inclusion rate, effective June 25, 2024, from one half to two thirds for corporations, and trusts, and from one half to two thirds on the portion of capital gains
realized in the year that exceed $250,000 for individuals, graduated rate estates (GREs) and qualified disability trusts (QDTs). A Notice of Ways and Means Motion (NWMM) to introduce this change was tabled on June 10, 2024.
On January 31, 2025, the federal government announced that the effective date for these proposed changes will be deferred from June 25, 2024 to January 1, 2026.
Dividend taxation
Dividends received by individuals from Canadian corporations are taxed based on a “gross-up” value and a corresponding tax credit. The
gross-up and tax credit varies depending on the type of dividend; i.e., whether “eligible” (dividends paid after 2005 from public companies
and private companies where the underlying income is subject to the general corporate tax rate) or “non-eligible” (a dividend from a private
Canadian corporation where the related underlying income is investment income or income subject to the small business rate).
The following table summarizes the amount of eligible and non-eligible dividends that may be received without incurring tax in 2025,
assuming no other income or deductions other than the basic personal exemption and dividend tax credit. Note however that AMT may
be triggered in some cases.
Province/territory Eligible dividends Non-eligible dividends
Alberta $73,720 $24,822
British Columbia $73,720 $27,514
Manitoba $40,458 $15,412
New Brunswick $73,720 $24,500
Newfoundland & Labrador $29,070 $23,408
Nova Scotia $33,303 $16,804
Ontario* $73,720 $35,239
Prince Edward Island $55,840 $18,067
Quebec** $52,238 $21,368
Saskatchewan $73,720 $22,929
Yukon $73,720 $15,665
NWT $73,720 $35,239
Nunavut $73,720 $35,239
For more information, please visit mackenzieinvestments.com/taxandestate
*Does not include Ontario Health Premium **Does not include Quebec Health Services Fund.
02/25
This should not be construed as legal, tax or accounting advice. This material has been prepared for information purposes only. The tax information provided in this document is general in nature and each client should consult
with their own tax advisor, accountant and lawyer before pursuing any strategy described herein as each client’s individual circumstances are unique. We have endeavored to ensure the accuracy of the information provided
at the time that it was written, however, should the information in this document be incorrect or incomplete or should the law or its interpretation change after the date of this document, the advice provided may be incorrect or
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inappropriate. There should be no expectation that the information will be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise. We are not responsible
for errors contained in this document or to anyone who relies on the information contained in this document. Please consult your own legal and tax advisor.
The content of this document (including facts, views, opinions, recommendations, descriptions of or references to, products or securities) is not to be used or construed as investment advice, as an offer to sell or the solicitation
of an offer to buy, or an endorsement, recommendation or sponsorship of any entity or security cited. Although we endeavour to ensure its accuracy and completeness, we assume no responsibility for any reliance upon it.
