Canadian Income tax??

Question

can anyone tell me how the government calculate the percentage of income tax they deduct from our income? for example how much percent do they deduct from our income at a certain amount of income.

thanks so much

Answer 1

Your income tax depends on the types of income, amount earned, the personal tax exemptions available to you, and the province you live in. Here is the link that you can calculate the tax yourself.http://www.morningstar.ca/globalhome/Mar...

Answer 2

I'm not sure if you are looking for how they calculate source deductions taken off your paycheque or the percent of tax you will pay after completing your tax return.

If you want to find what source deductions (income tax, CPP and EI) should be withheld from your paycheque you can use the payroll deductions calculator. You just have to select the province you live in, how often you get paid and what your gross (before deductions) income is each pay period.

http://www.cra-arc.gc.ca/esrvc-srvce/tx/...

If you just want to figure out what percent the tax represents of the income I would suggest the following link.

http://www.ey.com/GLOBAL/content.nsf/Can...

As another user mentioned calculating your taxable income on your return can include different types of income that are taxed at different rates. You can also have various types deductions or credits. If you want a rough estimate as to what your tax return will look like I would suggest the following link.

http://www.taxtips.ca/calculators/taxcal...