Tax - house & employment
#1
Tax - house & employment
Hi, Can you please help with some information or direct me to where I might find out about the following 2 things.
1) How is the cost of annual tax worked out on your property? and is it the same formula across Canada or is it Provincial? I have been told that this is based on the value of your property and will fluctuate with the value, is this correct?
2) What are the tax brackets for employment, ie, do you pay different percentages of tax the more you earn? Again, is this formula applied across the Country or differ Provincially.
Many thanks for any help you can give
1) How is the cost of annual tax worked out on your property? and is it the same formula across Canada or is it Provincial? I have been told that this is based on the value of your property and will fluctuate with the value, is this correct?
2) What are the tax brackets for employment, ie, do you pay different percentages of tax the more you earn? Again, is this formula applied across the Country or differ Provincially.
Many thanks for any help you can give
#2
Forum Regular
Joined: Feb 2008
Location: Toronto, Canada
Posts: 285
Re: Tax - house & employment
Hi, Can you please help with some information or direct me to where I might find out about the following 2 things.
1) How is the cost of annual tax worked out on your property? and is it the same formula across Canada or is it Provincial? I have been told that this is based on the value of your property and will fluctuate with the value, is this correct? Property tax is Municipal not Federal or Provincial so it will depand on which Municipality you are living in. Most property listings will declare how much property tax they paid in the previous year or ask your Realtor to get you a copy of the tax. There is an assessment, usually done by some computer program somewhere that will generate a value for your property and you pay tax based on this amount. There is a process to dispute the assessment but you will need to provide them with the evidence of value to contest this.
2) What are the tax brackets for employment, ie, do you pay different percentages of tax the more you earn? Again, is this formula applied across the Country or differ Provincially. Yes and no....depends on what your employment status is, check out the 'key information' box on the middle right.
http://www.cra-arc.gc.ca/menu-eng.html
Many thanks for any help you can give
1) How is the cost of annual tax worked out on your property? and is it the same formula across Canada or is it Provincial? I have been told that this is based on the value of your property and will fluctuate with the value, is this correct? Property tax is Municipal not Federal or Provincial so it will depand on which Municipality you are living in. Most property listings will declare how much property tax they paid in the previous year or ask your Realtor to get you a copy of the tax. There is an assessment, usually done by some computer program somewhere that will generate a value for your property and you pay tax based on this amount. There is a process to dispute the assessment but you will need to provide them with the evidence of value to contest this.
2) What are the tax brackets for employment, ie, do you pay different percentages of tax the more you earn? Again, is this formula applied across the Country or differ Provincially. Yes and no....depends on what your employment status is, check out the 'key information' box on the middle right.
http://www.cra-arc.gc.ca/menu-eng.html
Many thanks for any help you can give
#3
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,684
Re: Tax - house & employment
Hi, Can you please help with some information or direct me to where I might find out about the following 2 things.
1) How is the cost of annual tax worked out on your property? and is it the same formula across Canada or is it Provincial? I have been told that this is based on the value of your property and will fluctuate with the value, is this correct?
1) How is the cost of annual tax worked out on your property? and is it the same formula across Canada or is it Provincial? I have been told that this is based on the value of your property and will fluctuate with the value, is this correct?
2) What are the tax brackets for employment, ie, do you pay different percentages of tax the more you earn? Again, is this formula applied across the Country or differ Provincially.
#4
Re: Tax - house & employment
Thank you guys, those links are really helpful, especially on the personal tax issue. Didn't realise it could vary so much, we are considering Calgary or Ottawa, interesting Alberta has a fixed 10% provincial tax.
So guessing that with the property tax it factors in what amenities need upkeeping around you, like schools etc, is this right - does this have an effect on the tax you pay?
So guessing that with the property tax it factors in what amenities need upkeeping around you, like schools etc, is this right - does this have an effect on the tax you pay?
#5
Re: Tax - house & employment
It is administered provincially. In BC the property for 2010 is assessed at its market value on July 1, 2009. The actual amount of the tax you pay depends on the municipality. If two houses are assesses at $300,000 and $400,000 and the municipality needs $6,000 the first house pays 6,000/(300,000+400,000)*300,000 = $2,571 and the second house pays 6,000/(300,000+400,000)*400,000 = $3,429.
#6
Re: Tax - house & employment
It also matters whether you're located within city limits or not. Outside of city limits you have a reduced range of services (ie no garbage collection, or municipal water supply for example), therefore the tax rates are adjusted down accordingly. I moved from a property that was in city limits to one that's 2kms outside and my tax halved. This is balanced out somewhat by increased property insurance costs as the house is no longer considered covered by city fire services.
#7
Re: Tax - house & employment
I don't believe property tax is a provincial government matter, but rather your local municipality, either city or rural municipality.
At least thats the case in MB.
Property Transfer taxes tend to be provincial.
At least thats the case in MB.
Property Transfer taxes tend to be provincial.
#10
Re: Tax - house & employment
Municipalities set their local mill rate which determines what percentage of the valuation you pay annually. Around here it's about 1%.
#11
Re: Tax - house & employment
#12
Re: Tax - house & employment
All you ever wanted to know about assesments can be found here...these are the people that do the dirty job....
http://www.mpac.ca/
http://www.mpac.ca/
#13
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,684
Re: Tax - house & employment
All you ever wanted to know about assesments can be found here...these are the people that do the dirty job....
http://www.mpac.ca/
http://www.mpac.ca/
Property taxes can change year to year. If you do any alterations on the property and get permits (like you are supposed to), the value will be reassessed by BC assessment.
These are the guys who set the value http://www.bcassessment.bc.ca/
These are the guys who set the value http://www.bcassessment.bc.ca/