Average Marginal Average Marginal Difference
Salary / Interest income 75,000 100.00 85,000 100.00 10,000
Dividends received
Capital gains realized
Taxable income 75,000 100.00 85,000 100.00 10,000
Federal tax:
% on the first 15.00% 41,544 6,231.60 6,231.60 0.00
% on the next 22.00% 41,544 7,360.32 22.00 9,139.68 1,779.36
% on the next 26.00% 45,712 497.12 26.00 497.12
% over 29.00% 128,800
Total 13,591.92 22.00 15,868.40 26.00 2,276.48
NRTxCr 15.00% 10,527 1,579.05 1,579.05 0.00
Div Tx Cr 16.44% x taxbl div 0.00 0.00 0.00 0.00 0.00
Basic Federal Tax 12,012.87 22.00 14,289.35 26.00 2,276.48
Ontario tax:
% on the first 5.05% 37,774 1,907.59 1,907.59 0.00
% on the next 9.15% 37,776 3,406.18 9.15 3,456.50 50.32
% over 11.16% 75,550 1,054.62 11.16 1,054.62
5,313.77 9.15 6,418.71 11.16 1,104.95
NRTxCr 5.05% 9,104 459.75 459.75 0.00
Div Tx Cr 6.40% x taxbl div 0.00 0.00 0.00 0.00 0.00
(1) 4,854.01 9.15 5,958.96 11.16 1,104.95
Surtax 20% (1) over 20.00% 4,078 155.20 1.83 376.19 2.23 220.99
Capital Gains) over 36.00% 5,219 266.39 4.02 266.39
Total Ontario tax 5,009.22 10.98 6,601.54 17.41 1,592.32
The inclusion rate of capital gains is currently 50%, i.e., 50% of the capital gain realized is
subject to income tax. Capital gains are not taxed until the gain is realized, that is, until the asset68.80
Average tax rate 22.70% 24.58%
Marginal tax ratecircumstances, capital gains are deemed to have 32.98%ealized. We will 43.41%
covering this aspect of capital gains in this course.
Tax on $10,000 using margin
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