Jane Doe has always lived in Quebec and just graduated from Universite de Montreal in December 2022 and started her full-time employment as of January 1, 2023. Prior to this, she only held part-time jobs as an intern.

Facts for 2023 for Barb:

• Gross annual salary of $71,000 

1. Interest income of $500
2. Unused tuition carry over from 2022: $7,000
3. Made Registered Retirement Savings Plan (RRSP) contribution of $3,000
4. Registered Retirement Savings Plan (RRSP) contribution room of $10,000
5. Made Tax-Free Savings Account (TFSA) contribution of $2,000
6. Tax-Free Savings Account (TFSA) contribution room of $18,500
7. Sold 50 shares in Intact Financial at $193 per share on July 10, 2023 (paid a total of $7,700 for 70 shares when she purchased them in 2020)
8. Net capital loss from previous years of $400

 

1. Using Table A, calculate Jane Doe's taxes payable (ignore non-refundable tax credits for this problem). (2 marks)

  Show Calculations

2. Calculate Jane Doe's average tax rate and marginal tax rate for 2023. 

	Tax calculation
Average tax rate
Marginal tax rate

TaxTips.ca - Combined Federal & Quebec Tax Brackets and Tax Rates QC 2023 Marginal Tax Rates QC 2022 Marginal Tax Rates 2023 Taxable Income (1) first $49,275 Canadian Dividends Canadian Dividends Other Capital Income Gains Eligible Non-Eligible 26.53% 13.26% 3.15% 17.90% 2022 Taxable Income (1) first $46,295 Other Capital Income Gains Eligible Non-Eligible 19.05% 24.80% 30.08% over $49,275 up to $53,359 31.53% 15.76% 10.05% over $53,359 up to $98,540 36.12% 18.06% 16.39% over $98,540 up to $106,717 41.12% 20.56% 23.29% over $106,717 up to $119,910 45.71% 22.86% 29.63% over $119,910 up to $165,430 47.46% 23.73% 32.04% over $165,430 up to $235,675 50.23% 25.12% 35.87% over $235,675 53.31% 26.65% 40.11% 27.53% 13.76% 4.53% 23.65% over $46,295 up to $50,197 32.53% 16.26% 11.43% 28.93% over $50,197 up to $92,580 37.12% 18.56% 17.77% 34.68% over $92,580 up to $100,392 41.12% 20.56% 23.29% 39.96% over $100,392 up to $112,655 45.71% 22.86% 29.63% 41.97% over $112,655 up to $155,625 47.46% 23.73% 32.04% 45.16% over $155,625 up to $221,708 50.28% 25.14% 35.94% 48.70% over $221,708 53.31% 26.65% 40.11% Marginal tax rate for dividends is a % of actual dividends received (not grossed-up taxable amount). Marginal tax rate for capital gains is a % of total capital gains (not taxable capital gains). Gross-up rate for eligible dividends is 38%, and for non-eligible dividends is 15%. For more information see Quebec dividend tax credits. Copyright 2002-2023 Boat Harbour Investments Ltd. 34.68% 39.96% 41.97% 45.22% 48.70%