Income Tax Canada

Income tax Canada includes the payment of tax according to the federal tax rates and provincial or territorial tax rates implemented in Canada. The personal income tax in Canada is the major contributing factor in Canada government’s annual revenue.
The federal tax system in Canada allows the government to collect corporate income taxes in the country except three territories namely Alberta, Ontario and Quebec and personal income taxes in all the territories and provinces in Canada except Quebec. The Canada Revenue Agency (CRA) regulates the entire income tax process in Canada and the federal income tax is imposed under the Income Tax Act in the country.

The provincial and territorial income taxation in Canada also follows the concept of taxable income as defined by the federal tax system.

The provincial and territorial governments in Canada offer low-income tax reductions and also provide both refundable and non-refundable tax credits to the tax payers in that province or territory.
The CRA sets the tax payment deadline for the income tax Canada and taxpayers need to assess their liability and file the tax returns within that date. Apart from collecting taxes in the country, the CRA calculates the returns filed by the taxpayers and also makes corrections if required. If any disagreement occurs between the CRA and taxpayer’s calculation on the tax payment, the taxpayer may object to the assessment made by the CRA and eventually move to the Tax Court of Canada for review and re-assessment of the tax.

The rate of taxation depends on the income bracket in which the individual falls in and generally, more the income; more is the income tax rate in Canada.

The following table includes the data on federal marginal tax rates in Canada :

Taxable Income Rate
$0 – $8929 0%
$8,929 – $37,178 15.5%
$37,178 – $74,357 22%
$74,357 – $120,887 26%
Over $120,887 29%

The taxable personal income in Canada is calculated by the federal tax system in Canada and the amount to be given away as the tax by a taxpayer depends on the taxable income in the specific tax year. The various sources from where the personal income taxes can be calculated in Canada are – deduction at source, payment on filing, installment payments and arrears payment. Lottery winnings, gifts, strike pay, income coming from some international organization where Canada has membership like the UN, war disability pension etc. are some of the incomes on which tax is not levied in Canada.

Here is a comprehensive table on the income tax rate structure in Georgia.

If the income range is between $0 and $750, the tax rate on every dollar of income earned is 1% in Georgia.

If the income range is between $751 and $2,250, the tax rate on every dollar of income earned is 2% in Georgia.

If the income range is between $2,251 and $3,750, the tax rate on every dollar of income earned is 3% in Georgia.

If the income range is between $3,751 and $5,250, the tax rate on every dollar of income earned is 4% in Georgia.

If the income range is between $5,251 and $7,000, the tax rate on every dollar of income earned is 5% in Georgia.

If the income range is $7,001 and over, the tax rate on every dollar of income earned is 6% in Georgia.

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Last Updated on : 5th July 2013