Canada: Living There - Tax Issues
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Last Updated: Nov 07, 2007
Living There
INDIVIDUAL TAXATION
Canadian residents are subject to Canadian income tax on their worldwide income. Married couples are taxed separately.
INCOME TAX
Income is taxed at the federal level and at the provincial level. In all provinces, except Quebec, the Canadian Government collects taxes on behalf of the provincial or territorial government. The provincial rules for computing income are generally (but not always) consistent with the federal rules. The tax bands and rates are regularly adjusted annually.
Residents are entitled to claim certain deductions, non-refundable tax credits, and refundable federal, provincial or territorial credits.
FEDERAL INCOME TAX RATES FOR 2007 |
|
| Taxable Income, CA$ (US$) | TAX RATE |
| Up to 37,178 (US$35,290) | 15.50% |
| 37,179 - 74,357 (US$70,580) | 22.00% on band over US$35,290 |
| 74,358 - 120,887 (US$114,747) | 26.00% on band over US$70,580 |
| Over 120,887 (US$114,747) | 29.00% on all income over US$114,747 |
| Source: Global Property Guide | |
PROVINCIAL/ TERRITORIAL INCOME TAX RATES FOR 2007 |
|
| PROVINCES / TERRITORIES | RATES, CA$ |
| Newfoundland and Labrador | 9.64% on the first $29,886 of taxable income, + 14.98% on the next $29,886, + 17.26% on the amount over $59,772 |
| Prince Edward Island | 9.8% on the first $31,369 of taxable income, + 13.8% on the next $31,370, + 16.7% on the amount over $62,739 |
| Nova Scotia | 8.79% on the first $29,590 of taxable income, + 14.95% on the next $29,590, + 16.67% on the amount over $33,820 + 17.5% on the amount over $93,000 |
| New Brunswick | 10.12% on the first $34,186 of taxable income, + 15.48% on the next $34,188, + 16.80% on the next $42,787, + 17.95% on the amount over $111,161 |
| Ontario | 6.05% on the first $35,448 of taxable income, + 9.15% on the next $35,448, + 11.16% on the amount over $70,976 |
| Manitoba | 10.9% on the first $30,544 of taxable income, + 13.5% on the next $34,456, + 17.4% on the amount over $65,000 |
| Saskatchewan | 11% on the first $38,405 of taxable income, + 13% on the next $71,324, + 15% on the amount over $109,729 |
| Alberta | 10% of taxable income |
| British Columbia | 5.7% on the first $34,397 of taxable income, + 8.65% on the next $34,397, + 11.1% on the next $10,190, + 13% on the next $16,925, + 14.7% on the amount over $95,909 |
| Yukon | 7.04% on the first $37,178 of taxable income, + 9.68% on the next $37,179, + 11.44% on the next $46,530, + 12.76% on the amount over $120,887 |
| Northwest Territories | 5.9% on the first $35,315 of taxable income, + 8.6% on the next $35,316, + 12.2% on the next $44,119, + 14.05% on the amount over $114,830 |
| Nunavut | 4% on the first $37,178 of taxable income, + 7% on the next $37,179, + 9% on the next $46,530, + 11.5% on the amount over $120,887 |
| Source: Global Property Guide | |
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posted by chele | 2008-02-23
yes, Vancouver
The first $9600 of income is tax free. Common deductions for residents include public transit passes, education expenses, retirement savings, and dependents.