Canadian Income Tax Information
Canadian income tax is a combination of federal tax and provincial or territorial tax, but they are calculated separately. The taxes are paid to the Canada Revenue Agency, an agency similar to the Internal Revenue Service in the United States.
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Federal Tax Information
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The federal tax remains the same throughout Canada. However, the base rate will change depending on how much income you have for the year you are filing.
Federal Tax Calculation
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In 2010, if you made $40,970 or less, take the taxable income and multiply it by 15 percent. $25,000 multiplied by 15 percent equals $3,750.00.
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Provincial or Territorial Tax Information
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For provincial or territorial taxes, you will need to choose the correct column for the province you live in. Residents of Quebec are subject to different calculation rates and methods and can go to www.revenu.gouv.qc.ca/en for more information.
Provincial Tax Calculation
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In Newfoundland and Labrador, as of 2010, the first $31,278 is multiplied by 7.7 percent. $25,000 multiplied by 7.7 percent equals $1925.00. Additional income is calculated at different percentages. Other provinces have their own systems for these calculations.
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References
Resources
- Photo Credit A young woman holding a pen, doing her taxes image by Christopher Meder from Fotolia.com
