Canadian Tax Information

Canadian Tax Information

The Canadian Revenue Agency, or CRA, is the agency responsible for taxes, acting much like the American IRS. This company administers both laws regarding international trade, and those of taxes as well. This agency applies to the entire Government of Canada, and many of its territories and provinces as well. The rate of taxation in Canada is higher than that in the United States, and for this reason 40% of the government’s funds come from individual’s income taxes. Overall about 70% of the nation’s income is obtained through taxes.

Canada Income Tax Information

And although the tax brackets in Canada are fewer, the first bracket begins at a higher rate. The first tax bracket calls for 15.5% of the first $37,178 earned. As compared with the United States, an income of $37,178 spans the first two tax brackets, which are 10% and 15%. So as you can see, the rates of taxation in Canada are significantly higher than those in the United States.

Income over $37,178 and below $74,357 steps in to the second Canadian tax bracket, being taxed at a rate of 22%. While anything beyond that, but under $120,887 is taxed at a rate of 26%. Any income above that value is taxed at a rate of 29%. So for high income tax-payers, the rate of taxation will be lower than that of the US, which caps out at 35%

This tax information will only apply to residents of the Government of Canada, however, as the rates of taxes for its many provinces begin around 25% and top out closer to 50%.

Canadian Tax Return Information

In Canada, when filing with the CRA, all tax returns and outstanding payments are due by April 30th. Self-employed persons, however, have until June 15th to file their personal returns. Filing your tax return in Canada can be made complicated due to the fact that its provinces and territories are taxed at different rates. This can cause confusion to the tax-payer that works in one province yet lives in another. In such a situation as that, the person is encouraged to file in the province of residence, despite any temporary relocation due to work. Should you have any questions regarding taxes in Canada, their website is full of resources that are there to help you.