9. What are the personal tax rates in Canada?

Tax rates in Canada vary by province. BDO’s Tax Facts 2013 publication outlines the tax rates for each province and is available on our website. On page 2, there is a chart indicating the top marginal tax rates by province for different types of income. Employment income would be considered “regular income” on this chart. On pages 3 through 7, there are tax calculation formulas for each province which illustrate the federal and provincial tax brackets. For example, the top marginal tax rate in Ontario for 2013 is 49.53% (federal plus provincial tax), and the lowest tax bracket is 20.05%.

Signing bonuses can generally be structured to be subject to Canadian tax at a flat rate of 15% under the treaty, rather than be subject to tax at marginal rates.