What are canadian tax rates

what are canadian tax rates

Federal tax rates for 2007 are:

15.5% on the first $37,178 of taxable income, +

22% on the next $37,179 of taxable income (on the portion of taxable income between $37,178 and $74,357), +

26% on the next $46,530 of taxable income (on the portion of taxable income between $74,357 and $120,887), +

29% of taxable income over $120,887.

Provincial Tax Rates for Ontario are:

6.05% on the first $35,488 of taxable income, +

9.15% on the next $35,488, +

11.16% on the amount over $70,976

Let's suppose you are considering employment in the Province of Ontario, and you make $26K per year.

That's $500.00 per week, so here are the calculations:

Province of employment Ontario

Federal amount from TD1 Claim Code 1 (Minimum - 8,929.00)

Provincial amount from TD1 Claim Code 1 (Minimum - 8,553.00)

Salary (Per Week)

Gross salary for the pay period 500.00

Total EI insurable earnings for the pay period 500.00

Federal tax deductions 43.19

Provincial tax deductions 24.23

Total tax on salary 67.42

Canada Pension Plan deductions 21.42

Employment Insurance deductions 9.00

Requested additional tax deduction 0.00

Total deductions on salary 97.84

Net amount 402.16

As far as federal and provincial taxes on purchases are concerned, our tax rates in Ontario are 6% and 8% respectively where applicable.

Just so you know, Canadians are tax exempt on the first $8,929.00 of annual income. Also, Ontario residents are tax exempt on the first $8,553.00 of annual income.

Those are minimum exemptions based on being single without children.

Hope this additional information helps you.

Tax consultant for 27 years and former CRA employee (on contract)

Source: answers.yahoo.com

Category: Taxes

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