If provincial tax rates are 16% on the ﬁrst $40,100; 20% on the next $40,100; and 24% on any income after that. If a resident had income of $95,000, then determine the marginal provincial tax rate.

Question

Quizplus · Accepted Answer

The marginal tax rate is the tax rate applied to the last dollar of taxable income. In this case, the resident has taxable income of $95,000, which falls into the 24% tax bracket. Therefore, the marginal provincial tax rate is 24%.

If Provincial Tax Rates Are 16% on the ﬁRst $40,100;