deise1980

Hi all ,
I'm just wondering if anyone knows the tax rates and cut off points in Canada either Alberta or manitoba ? Is there a certain amount you can earn before being taxed ie low paid jobs or do they still have to pay the same percentage ?Eg someone earning 800pw at tax rate of 25% will take home 600 is it the same for someone earning only 600 talking home 450 .
rgds
Deise1980

Aviator

The wonders of Google
http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html

deise1980

Thanks for the link

justkidding

I don't see it but that link doesn't seem to say anything about the personal exemption which I think is what the OP is asking.

I believe it's somewhere around $10,000 before you pay any federal tax.

JonboyE

In 2012 the it is $10,822 for federal taxes. $17,282 for Alberta and $8,634 in Manitoba.

Federal and Manitoba axes are at progressive rates, Alberta is a flat 10% rate.

deise1980

Brilliant that's exactly what i was looking for thank you . Just another question guys if you know it or can point me in right direction believe me i have tried looking on Google but can't find . If my wife was earning say 1000 pm part time which would mean she would go over the exemption level by 1200 PA does she pay the 15% federal tax on the over amount or on the whole weekly wage ?? Basically I'm lookin to know what her take home would be on 200 pw as a temp foreign worker with open permit ?Do my earnings have any bearing on that 40,000?
Rgds
Deise1980

iaink

Try the accurate calculators at taxtips.ca, and take a look at the various wikis which explain the way EI, CPP, holiday pay deductions etc operate.

Jetlag

It will only be on the amount over the exempted amount, so she would only pay that particular tax on the 1200. But tax calculators are the way to go.

deise1980

,
Thank you for the link wow that looks complicated i wouldnt even know where to start with that form lol .I spoke to my prospective boss in canada who said I CANNOT claim tax incentives for my kids or spouse for approx 18 months .

So from what i can gather from internet income tax calculators for AB Canada is that if my wife goes over the 10800 mark(federal tax ceiling) she will only pay 15% federal tax on the whole weekly wage and not the over amount and 0 on the provincial tax because she hasnt reached the 17 or 18000 provincial tax ceiling am i correct in saying that ?
Rgds
Deise1980

iaink

You cannot claim the child tax credit (baby bonus) or the Universal childcare benefit amount for kids under 6 at first (these are both amounts the government will pay to you, not something you have to enter on the tax form), but you can claim the deductable amounts for having kids that are on the form, plus the credits for enrolling them in sport or arts programs up to $500 expense per kid.

Trust me, its worth figuring out the form, it gives you an idea how tax works here. Also bare in mind that most of it wont be relevant. Just enter the income amounts for you and your spouse and the basic details of kids ages and let it calculate your worst case situation. Anything you can deduct after that in the real world return is a bonus.

deise1980

Sorry we must have been posting at the same time . I am really confused now as to weather your taxed on the over exempted amount or once you go over that activates the 15% federal tax straight away on the whole amount . I have looked at many tax calculators online which nearly all give different figures but do suggest enough to say the latter is correct . It may be trivial to some but the different could go a long way towards child care etc each week so i need to be absolutely certain ?Again its the take home pay on we will say 1000pm gross I'm looking for ?
Rgds
Deise1980

iaink

You are only taxed on what you earn over the exempt amounts.

Taxtips consitstently have the most accurate calcularor that I know of, short of downloading a tax app and taking all the time to fill it in.

Child care will be tax deductable expense if you are both working and are paying it legitimately and getting a receipt, rather than some cash in hand deal.


Whats your and her expected annual income and how old are the kids and maybe someone will throw you a fish.

Almost Canadian

You are only taxed on the amount earned over the exemption. If the exemption is $10,000 and you earn $12,000, you are taxed on the $2,000 not the $12,000. It is the same as in the UK.