The History and Development of Canada’s Personal Income Tax ii edited by William Watson and Jason Clemens Fraser Institute 2017 professionals, and entrepreneurs. Put simply, the worries of 1917 have been borne out: personal income taxes are the tax area where, globally, Canada is least competitive. Provincial income tax rates and brackets 2013. All income tax brackets and rate changes from previous (2012) year are marked in bold. In Alberta, Manitoba, Nova Scotia and Prince Edward Island provinces there are no any tax rates or brackets changes for 2013. New Brunswick is the only province or territory which increased income tax rate in 2013. To avoid this "double taxation" of the same income, the personal income tax system, through the gross-up and dividend tax credit (DTC) mechanisms, provides recognition for corporate taxes, based notional federal-provincial corporate tax rates, to taxable individuals resident in Canada who receive dividends from Canadian corporations.