What is the tax rate in Canada, mainly ontario area?

Question

for every hundred of canadian currency that they earn how much do they take home?
I spoke with someone on the phone who told me their tax rate was around 14% versus the rate that i am paying in texas with a salary under 25k of 20%

Answer 1

AS PER CRA:

Federal tax rates for 2007 are:
15.5% on the first $37,178 of taxable income, +
22% on the next $37,179 of taxable income (on the portion of taxable income between $37,178 and $74,357), +
26% on the next $46,530 of taxable income (on the portion of taxable income between $74,357 and $120,887), +
29% of taxable income over $120,887.

Provincial Tax Rates for Ontario are:
6.05% on the first $35,488 of taxable income, +
9.15% on the next $35,488, +
11.16% on the amount over $70,976

http://www.cra-arc.gc.ca/tax/individuals/faq/taxrates-e.html

Let's suppose you are considering employment in the Province of Ontario, and you make $26K per year.

That's $500.00 per week, so here are the calculations:

Province of employment Ontario
Federal amount from TD1 Claim Code 1 (Minimum - 8,929.00)
Provincial amount from TD1 Claim Code 1 (Minimum - 8,553.00)

Salary (Per Week)
Gross salary for the pay period 500.00
Total EI insurable earnings for the pay period 500.00
Taxable salary 500.00
Federal tax deductions 43.19
Provincial tax deductions 24.23
Total tax on salary 67.42
Canada Pension Plan deductions 21.42
Employment Insurance deductions 9.00
Requested additional tax deduction 0.00
Total deductions on salary 97.84
Net amount 402.16

https://apps.cra-arc.gc.ca/ebci/rhpd/startLanguage.do?lang=English

As far as federal and provincial taxes on purchases are concerned, our tax rates in Ontario are 6% and 8% respectively where applicable.

Hope this information helps you.

ADDITIONAL INFORMATION @ 11:51 PM EDT

Just so you know, Canadians are tax exempt on the first $8,929.00 of annual income. Also, Ontario residents are tax exempt on the first $8,553.00 of annual income.

Those are minimum exemptions based on being single without children.

Hope this additional information helps you.

Tax consultant for 27 years and former CRA employee (on contract)

Answer 2

You can check that out on the Revenue Canada Website (see link below).
http://www.cra-arc.gc.ca/menu-e.html

How ever, that only counts the FEDERAL Income Tax, and not the Provincial Mill Rate. On top of that, you also have your Property Taxes, which are payable to the Municipality, and vary from City to Town to City...

However, if you were making $25,000Cdn, you would likely be paying about 17% Federal, and another 10% or so atop that. Assuming the numbers are correct, 27% may seem like a lot, but you have to remember, we have a whole whack of stuff called snow up here...the Provincial and Municipal Governments haver to clear roads for the citizenry, plus the Health Care system.

For the record, Canadians are one of the most taxed people on the planet. From the figures I've heard, only the Swedes(?) are taxed heavier, at a rate of 75% from what I've heard... But, then they also have a "Cradle to Grave" health care and welfare system for all citizens that is second to none!

Answer 3

Seeing the British flag, I will compare it to the UK. While the area around Toronto is one of the most densely populated areas of Canada, from a British perspective, you will find the o pen spaces totally different. Lots of forest, and farmland, even near the cities. The places you mentioned are all very close together - by Canadian standards. By UK ones, they are far apart. Canada is BIG! In fact, in Toronto you will still be closer to the UK than you are to where I live in Canada. Canada is that big. You will see a very diverse population, with people from all over the planet. 1/4 of Canadians are born outside the country, but, in Toronto, it is 1/2. So, many languages, ethnic groups, and races. But, Canadians are pretty much tolerant, and most don't care what race you are. My guess is you will do quite well in rugby. It is a rare game in Canada - my school plated it, but finding other schools that did was very difficult. Because of the big differences in seasons, Canadian kids play all sorts of sports, and don't specialize as much. We are also much more into indoor sports, like basketball, and volleyball, as winter sports (e.g. outdoor ones) are not always convenient in a school environment. The weather in the Toronto area is quite varied, from +30 to +40C in summer, and -30C in winter. So, what weather you will see depends hugely on the month that you come. The same with sorts activities - they will depend on the time of year as well.

Answer 4

14% is the total sales tax between provincial and federal.

The income tax rate varies from %15.25 to a max of 29% at $188,000 federal income tax. plus %6 to max of 11% provincial at $69,000.

So if you make under $36,000 you pay %21.25 if you earn over %118,000 you pay %40. And of course htere is eveyr thing in between.

Answer 5

15% Federal Taxes.
6% provincial taxes in Ontario.

And you pay 8% Sales Tax and 6% GST on practically everything you buy.

Grrrrrrr!