CANADIAN TAXES (For Immigrants)
If you are new to Canada and don’t know anything about Canadian taxes. Do you know anything about Canadian taxes? In this lesson, I’m going to teach you everything you need to know about Canadian taxes (For Immigrants).
Today I am going to help you get set up in your new life in Canada. So the first kind of tax that everyone in Canada has to pay is called GST. GST stands for goods and services tax this is a tax on everything you buy. So what say you go to the store and you want to buy a can of coke.
What. But you only have a loony. You can’t buy the coke. That’s so sad why did this happen. It’s because in Canada the GST is 5 percent so everything you buy in the store will have 5 percent added to the price you see on the shelf other parts of the world are much smarter than Canada.
For example, in Europe, if you see a price on the shelf. That’s the price you pay when you go to check out. But in Canada, I don’t know why we can’t figure it out so everything that you buy is going to have this 5 percent added on to it so when you go shopping you need to think about Hey these prices are real.
Well you know Burda we’re lucky it’s 0 we don’t have PST here in Alberta. But the other provinces in Canada do have PST okay for example if you live in DC it says 7 percent if you live in Ontario it’s 8 percent. usually, it’s around 7 or 8 percent some provinces are 10 percent.
What is Revenue Canada?
The second kind of tax in Canada is called income tax. That is a tax on the money you earn from your work. Now the organization in Canada that collects the tax is called the revenue Canada. So if you ever get a call from Revenue Canada. That’s maybe a bad thing and it could be a good thing too.
Then you get some slips in the mail some documents in the mail from your work. Actually one called a T. 4 slip that shows how much money you made from that job so people take the T. 4 slip and they use that and then they file their taxes and most people file their taxes online or they pay some company to do it for them.
So let’s say you make $40000 then you have to pay federal income tax and provincial income tax is going to be about $10600. Wow, that’s like $13000 that you have to pay every year in tax but the good news is that there are actually some tax deductions and tax credits that sort of lower the amount of taxes.