In Canada, the more you earn the higher percentage of tax you have to pay. For quick reference, links to the combined Federal and Provincial Tax Rates can be found below. Please continue reading for additional information. British Columbia Alberta Saskatchewan Manitoba Ontario Quebec Atlantic Provinces Territories (all link to TaxTips.ca) Canada Revenue Agency (Federal and Provincial/Territorial rates in their original format). Having a quick way to reference the tax brackets for where you live often comes in handy, such as when making decisions about how much to contribute to RRSPs. Note that the tax brackets are different in each province/territory.
So in Canada, there are both federal tax brackets and provincial/territorial tax brackets. To understand how much tax you will pay on each dollar earned, and ultimately your last dollar earned (also called your Marginal Tax Rate), you must look at both of these together.
For example, in Ontario, the Federal Tax Rates for 2011 are:
And the Provincial Tax Rates for 2011 are:
Note that in reality there is Basic Personal Amount credit. At this amount or below, no tax is paid.
In order to really understand your tax brackets, you must combined to the two tables above together. See the links above for tables where this has already been done. Further Related Links and Articles Marginal Tax vs Average Tax - retirehappyblog.ca
|
Strategies >