Income tax is one of the pillars of the Canadian tax system. It is levied on income generated from wages, investments, rents and other economic activities. It is progressive and rates vary depending on income level and the province or territory where you reside. Part of this revenue funds key services, such as Canada's healthcare system .
Federal rates for 2024:
Up to CAD$53,359 ($39,520): 5%.
Between 53,360 and 06,77 Canadian dollars (39,52-79,040 dollars): 20.5%.
Between 06,78 and 65,430 Canadian dollars (79,04-22,720 dollars): 26%.
Between CAD 65,43 and CAD 235,675 ($22,72-$74,750): 29%.
Over CAD$235,675 ($74,75): 33%.
For example, imagine you earn CAD$80,000 ($59,200) a year. You'll georgia phone number library pay 5% on the first CAD$53,359 and 20.5% on the remainder. This equates to about CAD$3,25 ($9,882) in federal taxes, plus provincial taxes.
What are provincial taxes? Each province has its own rates that are added to the federal rates. For example, in Ontario, provincial rates range from 5.05% to 3.6% (depending on your income). You can check the rates on the official websites of the tax agencies in each province or territory.
The GST is a 5% federal tax on most goods and services in Canada. However, in some provinces, this tax is combined with the provincial tax to create the Harmonized Sales Tax (HST), which can have a rate of up to 5% . This harmonized system simplifies tax collection, but the final percentage varies by province .