Marginal VS Effective Income Tax Rate
The average tax rate, also known as the effective tax rate, is not the same as the marginal tax rate. The average tax rate is calculated as total taxes paid divided by total taxable income. Your marginal tax rate does not include tax credits available for CPP/QPP or EI paid, low income tax reductions or other tax credits. Nor do they include health or other premiums.
For any additional information, please email Bob at robert.davies@manulifewealth.ca
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