Use the tax rate tables provided to answer the following questions

(a) How much tax (both Federal and Provincial) is someone paying (ignoring deductions) in Manitoba on $76,000 annually? (4 marks) Answer: $22558.62

(b) How much tax (both Federal and Provincial) is someone paying (ignoring deductions) in Quebec on $55,000 annually? (4 marks) Answer: $18054.02

(c) If someone is making $76,000 in Manitoba and moves to Quebec for a pay raise of $10,000 annually, by how much has their take-home pay changed? (Ignore deductions) (7 marks) Answer: $59791.38

Income Tax Rate Tables: Federal Tax

2016

Taxable Income

Tax Rate

15% on the first $45,916 of taxable income, +

15%

20.5% on the next $45,915 of taxable income (on the portion of taxable income over $45,916 up to $91,831), +

20.5%

26% on the next $50,522 of taxable income (on the portion of taxable income over $91,831 up to $142,353), +

26%

29% on the next $60,447 of taxable income (on the portion of taxable income over $142,353 up to $202,800), +

29%

33% of taxable income over $202,800.

33%