Canadian Tax Brackets & Rates

Tax Brackets and Rates Calculator

Canada’s income tax system is set up in a progressive manner, the more you earn, the more you pay. In fact you may have heard people referring to high-income earners losing half of what they make to the government.

The Canadian tax system uses tax brackets for determining your tax rate. As you earn more you move up through the brackets and the rate, or percentage of tax increases until you reach the top tax bracket for personal Income Tax Rates.:

Federal taxes are collected by the Canada Revenue Agency (CRA). Under Tax Collection Agreements the CRA collects all taxes due from each filer then, remits payments to each of the provinces as follows:

  • Provincial personal income taxes are collected on behalf of all provinces except Quebec, individuals outside of Quebec file only one set of tax forms each year for their federal and provincial income taxes.
  • Corporate taxes on behalf of all provinces except Quebec and Alberta.
  • The Ministиre du revenue du Quйbec collects the GST in Quebec on behalf of the federal government, and remits it to Ottawa.

Provincial governments of British Columbia, New Brunswick, Nova Scotia, Newfoundland, Labrador and Ontario no longer impose separate provincial sales taxes.

The federal government

collects goods and services tax at a rate higher than in the other provinces, and the additional revenue from this system is paid by the federal government to the five provinces.

Personal Income Taxes

Federal and provincial governments impose income taxes on individuals, which accounts for 40% of the revenue for those levels of government.

For income that is earned in the form of a capital gains, only half of the gain is taxed income; the other half is not taxable according to current tax laws.

Personal income taxes may be deferred by a Registered Retirement Savings Plan (RRSP) and tax sheltered savings accounts. This may include mutual funds and other financial instruments that are intended to help individuals save money for their retirements.

Canadian Tax Software is a quick way to save over hiring an accountant to prepare your return. Plus, it's a great way to brush up on your tax knowledge, which in tern can help you keep more of you hard earned cash next year.

Tax help for Canadian Provinces & Territories: Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland, Nova Scotia, Ontario, Prince Edward Island, Quebec, Saskatchewan, Northwest Territories, Nunavut Territory, Yukon Territory, - and US Taxes for any of the US states and overseas.

TaxSoftwareCanadian.Com

Source: www.taxsoftwarecanadian.com

Category: Taxes

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