I'm not a tax expert but a couple other details that are a little more advanced is not all income is taxed equally. If you are wondering what all the fuss is about in the new budget that is increasing the capital gains taxable amounts it is because currently you only pay tax on 50% of the gain. As an example, if you invest $1000 and then later sell for $3000, you would only pay tax on $1000. $3000 less $1000 invested equals $2000 gain but you only have to pay tax on half the gain so only on $1000. The other income source is Canadian approved (Canadian companies) dividends. In Ontario if your only source of income is from Canadian dividends you can make $50,000 and only pay $600 in total taxes, the amount varies by province. Investing in Canadian companies such as the big 5 banks that pay dividends gives you tax preferred income. Now, if you have the money in an RRSP, LIRA, or Pension fund, when you take this money out it is treated like income from a job and is taxed at the same rate as working income. There is a saying that is very true - "instead of working hard for your money, let your money work hard for you."
Thank you for this! So much useful knowledge!😊😊 I wish a form of Income Sharing still existed in Canada so that the higher earning family member could lower their tax rate. It feels as though Canadians are punished progressively the harder they work/earn.
Very informative, It sounds like the BPA must be taxed at base rate rather than deducting it from total amount, Potentially putting your last 15 k in a higher bracket, Thank you for clearing up some Questions I had cheers from BC
What has always confused me, say there are no deductions as an example and my taxable income is $100k. Is the full amount taxed both federally and provincially? Or would you tax the full amount federally, and then the remaining amount provincially. Seems totally unfair if both federal taxes the full $100k and then provincially also taxes the full $100k
That federal n provincial tax. N each state has its own rates show the Canadian gov. Is not serious in making life easier. I thought australia has higher income tax than Canada. But at the end I think au n Canada has very similar rates.
clear - cut explanation 🙏🙏. I've studied in Canada. Does it make sense to start a gym in GTA or Burnaby ( BC ) , maybe a smaller town like London or Barrie. with an investment of 500,000 to 800,000 Cad ?
You didn't include all the other taxes we have to pay like sales tax, property tax and so on. If you earn 100K a year and spend all the money, I believe you have to pay 40-50K (40-50%) of your total income in tax.
Thanks for this video. Very helpful to understand the tax system as a newcomer. Q: do I have to declare interest earned from a High Interest savings account by year end ? 💐
If i bring over 100k from overseas as a previous salary prior to coming to Canada as a permanent resident, do i have to pay taxes for that money anytime??
Thank you for the video. It was very helpful. I have a question what about the DCCP?, It also deduct my taxable income? Or is it already part of the CCP?
Canatax. High income tax, sales tax, property tax, carbon tax and maybe exit tax? No wonder many new canadians left for US once they got the canadian passport.
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I'm not a tax expert but a couple other details that are a little more advanced is not all income is taxed equally. If you are wondering what all the fuss is about in the new budget that is increasing the capital gains taxable amounts it is because currently you only pay tax on 50% of the gain. As an example, if you invest $1000 and then later sell for $3000, you would only pay tax on $1000. $3000 less $1000 invested equals $2000 gain but you only have to pay tax on half the gain so only on $1000. The other income source is Canadian approved (Canadian companies) dividends. In Ontario if your only source of income is from Canadian dividends you can make $50,000 and only pay $600 in total taxes, the amount varies by province. Investing in Canadian companies such as the big 5 banks that pay dividends gives you tax preferred income. Now, if you have the money in an RRSP, LIRA, or Pension fund, when you take this money out it is treated like income from a job and is taxed at the same rate as working income. There is a saying that is very true - "instead of working hard for your money, let your money work hard for you."
Way too much taxes in Canada. We are taxed to death.🙁
Imagine if you got child support and spousal support to pay. Enjoy losing 90% of your salary.
I agree that taxes are too high!
@@fatxiongmao7965that’s exactly where I’m at, now I owe more money than I have
You’re not taxed to death. You’re taxed into interest for Shitrael.
Thank you very well explained and incredibly helpful! 🙏🏻🙏🏻
Glad to hear that!
Thank you for this! So much useful knowledge!😊😊
I wish a form of Income Sharing still existed in Canada so that the higher earning family member could lower their tax rate.
It feels as though Canadians are punished progressively the harder they work/earn.
I agree that it can potentially be disincentivizing work!
An awesome informative video. Enjoyed it very much
Thank you!
Very informative, It sounds like the BPA must be taxed at base rate rather than deducting it from total amount, Potentially putting your last 15 k in a higher bracket, Thank you for clearing up some Questions I had cheers from BC
Here in Quebec we have more higher provincial rates😢
What has always confused me, say there are no deductions as an example and my taxable income is $100k. Is the full amount taxed both federally and provincially? Or would you tax the full amount federally, and then the remaining amount provincially. Seems totally unfair if both federal taxes the full $100k and then provincially also taxes the full $100k
Great video as always!
That federal n provincial tax. N each state has its own rates show the Canadian gov. Is not serious in making life easier. I thought australia has higher income tax than Canada. But at the end I think au n Canada has very similar rates.
Interesting! Yeah, the 'double' taxation on federal and provincial level is a bummer!
clear - cut explanation 🙏🙏. I've studied in Canada. Does it make sense to start a gym in GTA or Burnaby ( BC ) , maybe a smaller town like London or Barrie. with an investment of 500,000 to 800,000 Cad ?
The higher the tax rate, more inefficient the government.
It is never a good sign
It is questionable whether our tax money actually goes to good use or just trickles through the system
You didn't include all the other taxes we have to pay like sales tax, property tax and so on. If you earn 100K a year and spend all the money, I believe you have to pay 40-50K (40-50%) of your total income in tax.
Thanks for this video.
Very helpful to understand the tax system as a newcomer.
Q: do I have to declare interest earned from a High Interest savings account by year end ?
💐
Income from investments is also taxed. ***disclaimer: I’m not a financial/tax consultant
If i bring over 100k from overseas as a previous salary prior to coming to Canada as a permanent resident, do i have to pay taxes for that money anytime??
What is rate under 50000
Very informative arigatoooo ❤
Happy to hear! Thank you!
It should honestly be 5% for the first 50k you make, 15% is way too extreme.
Thank you for the video. It was very helpful. I have a question what about the DCCP?, It also deduct my taxable income? Or is it already part of the CCP?
I’m not too familiar with the details of it, this video is just meant as a general overview. Cheers!
Canatax. High income tax, sales tax, property tax, carbon tax and maybe exit tax? No wonder many new canadians left for US once they got the canadian passport.
45%
Canada have way too many taxes
They are now coming for your RRSP😂
I am planning to leave 😅 50% of my gain to gain the non- existing freedom 😂