FAQ
Frequently Asked Questions About Canadian Tax
A checklist for your Canadian personal/corporate tax
| TAXIBLE INCOME | Combined federal & provincial rate |
Capital Gains | Canadian dividend Non-eligible |
Canadian dividend Eligible |
| first $35,716 | 20.06% | 10.03% | 3.16% | (14.36%) |
| over $35,716 up to $40,726 | 22.70% | 11.35% | 6.46% | (10.54%) |
| over $40,726 up to $71,433 | 29.70% | 14.85% | 15.21% | (0.38%) |
| over $71,433 up to $81,452 | 32.50% | 16.25% | 18.71% | 3.68% |
| over $81,452 up to $82,014 | 36.50% | 18.25% | 23.71% | 9.48% |
| over $82,014 up to $99,588 | 38.29% | 19.15% | 25.95% | 12.07% |
| over $99,588 up to $126,264 | 40.70% | 20.35% | 28.96% | 15.56% |
| over $126,264 | 43.70% | 21.85% | 32.71% | 19.91% |
Even if you don’t have income or have to pay tax, it will often be to your advantage to still file a tax return for reasons such as:
- You may get a refund for the tax that was withheld from you come.
- There are federal and provincial refundable tax credits which are payable to you even if you have no earnings and have paid no tax. This includes the Working Income Tax Benefit.
- You may want to apply for the GST credit and/or the Canada Child Tax Benefit.
- You have unused tuition, education and textbook amounts that you want to carry forward to use in future years.
- You have non-capital losses that you want to carry back to previous years or carry forward to use in future years.
- RRSP contribution – 60 days after the end of the year
- Personal tax returns – April 30
- Self employed personal tax returns – June 15
- Tax owing for all taxpayers – April 30
Installment payments are due March 15, June 15, September 15, and December 15.
Please see the Personal Tax Checklist for a detailed list.
Canadian residents are required to report their income from all sources including any amounts earned outside of Canada.
See the Personal Tax Checklist for detailed list of income that should be included.
Tax credits reduce the tax owing amount. Because it does not reduce the taxable income, tax credits do not affect the rate the taxpayer pays. There are Federal and Provincial tax credits available to Canadian tax filers.
The CCTB is a tax-free monthly payment made to eligible families to help them with the cost of raising children under the age of 18.
The UCCB is a monthly payment made to Canadian families with children under the age of 6 years to help them balance work and family life by providing direct financial support of $100 a month.
The WITB is a refundable tax credit intended to provide tax relief for eligible working low income individuals and families who are already in the workforce and to encourage other Canadians to enter the workforce.
Yes you can deduct a portion of your household expenses such as mortgage interest, insurance, heat and electricity.
See the Self Employed Income Checklist for a detailed list as to which expenses are deductible for your situation.
A TFSA is a new way for residents of Canada to set money aside, tax-free, throughout their lifetimes. Contributions to a TFSA and the interest on money borrowed to invest in a TFSA are not tax deductible. The income generated in the TFSA is tax-free when withdrawn. The maximum amount that can be contributed to a TFSA per year is $5,000.
Yes, you can deduct certain expenses, as long as you under your contract of employment were required to pay for your own expenses. A signed T2200 Declaration of Conditions of Employment from your employer is required.
Qualifying commission employees can also deduct certain expenses.
See the Employee Expenses Checklist for a detailed list as to which expenses are deductible for your situation.
No, CRA considers travel to and from your normal place of work as a personal expense and therefore not deductible for tax purposes.
No, you can not deduct medical premiums paid to a public medical insurance plan. However premiums paid to private health services plans are deductible as medical expenses.
No, CRA does not allow a deduction for any expenses incurred in respect of membership or green fees at a golf club.
No, losses in an RRSP cannot be claimed as a deduction. However, because you have a lower amount of funds for withdrawal from, you will be taxed less.
Tax credits reduce the tax owing amount. Because it does not reduce the taxable income, tax credits do not affect the rate the taxpayer pays. There are Federal and Provincial tax credits available to Canadian tax filers.
No, this expense would be considered capital in nature and would therefore be added to the capital cost of the property and deducted over a period of several years.
See the Rental Income Checklist for a detailed list as to which expenses are deductible.
No, if you are losing money on your rental property because you are renting it at a lower rate to a relative than you would to other tenants, then you cannot claim the loss.
If the rental income consistently does not cover expenses, then a reasonable expectation of profit does not exist and rental losses are deemed non-deductible.
Please see the Year End Checklist for a detailed list.
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