Tax in Canada

[Neil/Melissa]

Hi Everyone

My Family are looking into moving to Canada in the next year or two and are trying to gather some information. Can anyone please advise on how the income tax system works?

I have the tax rates for 2007 for Federal and Provincial taxes but I'm not sure how to work them out. Are both tax rates deducted from your gross salary? Or are the Federal taxes deducted first and then the Provincial taxes deducted from whats left?

I may have more questions the more I look into this!!!

Neil

[Neil/Melissa]

Hi Again

Just noticed that there is also a Property Tax. We are looking to move to the Vancouver area so would be grateful if anyone can advise on rates for this area.
Are there any other taxes that I need to be aware of?

BR
Neil

[JohnSoCal]

Originally Posted by Neil/Melissa

Hi Everyone

My Family are looking into moving to Canada in the next year or two and are trying to gather some information. Can anyone please advise on how the income tax system works?

I have the tax rates for 2007 for Federal and Provincial taxes but I'm not sure how to work them out. Are both tax rates deducted from your gross salary? Or are the Federal taxes deducted first and then the Provincial taxes deducted from whats left?

I may have more questions the more I look into this!!!

Neil

Both tax rates are combined and applied to you taxable income. Just add the 2 rates together and think of them as one tax rate. The brackets sometimes differ but this will give you a pretty close approximation.

[synthia]

Neil and Melissa, welcome! You should check on whether there will be separate deductions for government pensions and unemployent or whether it is all included in the general tax. It's separate and additional in the US, and it might be the same there. At least you should ask.