tax in canada
 

Does anyone know if you are taxed more in canada or does it vary form state to state:confused:

Re: tax in canada
 

More.

Re: tax in canada
 

You can find out a lot from the Tax Tips website. There are calculators where you can plug in a given amount of income and see how much federal and provincial income tax you would have to pay on that income.

There also is 6% federal GST on purchases (and the GST is not reflected on price labels, but is added at point of sale). All provinces but Alberta also have provincial sales tax (PST).

I see from your previous posts that you're considering moving to Alberta. Don't get overexcited about the lack of PST in Alberta. I believe you will make up for it in high real estate prices, higher prices for groceries, the fact that you have to pay premiums for the provincial health care insurance plan, etc. Edited to add that the comparison I am making is not between Alberta and the UK but between Alberta and several other Canadian provinces.

If you are an employee whose tax gets deducted at source, there also will be deductions for employment insurance (EI) and Canada Pension Plan (CPP).

The Canadian government's official tax collection agency is Canada Revenue Agency.

Re: tax in canada
 

Less.

I pay 26% overall with no miraculous deductions, compared with over 30% on a smaller amount when I was in the UK, plus sales taxes are lower. Thats including all "NI" type contributuins too. Ive a feeling property tax might be less than council tax too, or at least broadly similar.


In reality I suppose the answer is "similar", they are both developed nations with healthcare provision after all, and who ever looked at taxation rate as a rational reason for deciding on relocating thousands of miles away anyway. Could be a new government with each elections and taxation will vary accordingly. And yes, it will vary from "state to state", although Im sure you meant province, or perhaps territory;)

Re: tax in canada
 

My experience is that I pay slightly more than in UK. Taking income and property tax rates together I pay roughly the percentage I paid in France which was more than in the UK. As a new resident I am also unable to claim any child benefit or family tax credits.

Depends on individual circumstances of course. If you made different choices you could find it broadly similar of slightly cheaper. It's 'similar' as Notiaink says.

Re: tax in canada
 

Depends how your defining taxes, I'd allow 30% to cover everything, income, sales tax and average property taxes...

rgds,



John

Re: tax in canada
 

Just came across this link today which gives the federal income tax rates for 2007 & the rates for each province.
http://www.cra-arc.gc.ca/tax/individ...axrates-e.html

Hilary

www.truecanada.ca
All that you can dream

Re: tax in canada
 

I've looked at all the sites, but I'm having troubly extracting what is relevant to me etc. So I have one simple question;

Is there a tax free allowance, like there is in the UK?

Re: tax in canada
 

its about $8k for single, $14k for joint/married

Its all been discussed in the past so without boring you there is a distinction between actual income, taxable income and net income.

The most usefull and reliable site is the www.taxtips.ca one, especially this calculator

http://www.taxtips.ca/taxcalculator.htm

Re: tax in canada
 

Going back some years now (ok ALOT of years now) what we were taught in High School senior years in Economics class (I'm guessing its like your A levels?? Was about 16 or so at the time) Canadian taxation laws allow a one-off (once a lifetime) tax free benefit of tens of thousands of dollars, I think that was put in place should you win the lottery or inherit a fortune from an Aunt dying or something *lol* Anyway, Not been in Canada the last 3 years but I'd not heard that the allowance was pulled before I left ;)

Re: tax in canada
 

Not sure where you might have heard that but it's most definitely not true.

Lottery winnings or inheritances have always been and still are tax free in Canada.

You can win the lottery numerous times and you will never be taxed on your winnings. Now should you invest those winnings the interest earned from them would be taxable, just as any interest earned from an inheritance would be taxable.

Re: tax in canada
 

Then maybe it has nowt to do with inheritances or lottery winnings... I do remeber my old teacher saying how every Canadian has a one off "tax free" sum they can claim from the govt in income tax and it was for a large sum of money (cant remember the specifics) but that many Canadian citizens didn't even know it existed & so never took advantage of it. It was definately over $10,000 though and like I said, one time only allowed to be income sans tax with this law. OK I know I'm an old bugger at 31 but surely the economic laws havent changed *that* much since I was a teen!!??!! :blink:

Re: tax in canada
 

My guess is it was the capital gains exemption. One is allowed to be exempt from taxes for so many dollars (not sure how much) if one has a capital gain. For example investments. It is probably not relevant since most of us plebes have enough trouble making a living. Also, one is allowed to be tax exempt from any profit one may make on the sale on one's principal residence.

Hope this helps.

Re: tax in canada
 

Mike I think you hit the nail on the head.

I also think it is the "Lifetime Capital Gain Exemption" of up to $500,000.

http://www.cfib.ca/research/businfo/pdf/min0122.pdf

Just increased in the 2007 federal budget to $750,000 which I believe was passed today (Friday).

http://www.cra-arc.gc.ca/agency/budget/2007/cgains-e.html

Cheers
Steve

Re: tax in canada
 

YAY I'm not insane (yet) *lol* :rofl::lol: