Can anyone clear up my relatively simple tax confusion?

Looking at this chart, I understand there are different rates of tax for each bracket. I note there are different tax rates for each type of income (other income, capital gains, dividend income). I don't understand the cumulative effect of this.

For example, in Nova Scotia, if I have $29,590 of "other income", I will pay 23.79% on income above the basic personal amount. If I add $10K of capital gains, will I pay 11.9% (the rate for the bracket below $29,590) or will I pay 14.98%, the rate for income above $29,590?

In other words, is the capital gains taxed independently of other income or is it added on top of other income and taxed on the higher total (and therefore in a higher bracket)?

Thanks.

Edit: I think I may have answered my own question; I note the table only has a different rate because it is exactly 1/2 the rate of other income. They table has already accounted for the only 1/2 of gains are taxable bit. That leaves me with a remaining question: So how is dividend income taxed?

Posted Aug 14, 2017, 7:36 PM UTC · edited

116
Loading comments…