Canadian Employment Taxes

[FinPro]

Hello Everyone,

I believe it is important for every one immigrating to Canada to know about the taxes one is going to pay from one's pay check. It might be one of the factors which may decide where one wanna settle. These are only Employment taxes, there will be additional taxes and the overall picture may change once u add those taxes. Therefore, more research is advisable.

For Employment taxes, a summary of Fed Tax and of Proivinces of AB, BC & ON is given. For more details, a link is given at the end of the post. Rates are valid for 2006.

Federal Tax Rate ( Common for all provinces):
15.25% on the first $36,378 of taxable income;
22% on the next $36,378 of taxable income;
26% on the next $45,529 of taxable income; and
29% of taxable income over $118,285.
+

CPP (Canadian Pension Plan - Fed Tax): 4.95%
+
Employment Insurance: $1.87 for every $100

Provincial Taxes:
Ontario
6.05% on the first $34,758 of taxable income, +
9.15% on the next $34,759, +
11.16% on the amount over $69,517

British Columbia
6.05% on the first $33,755 of taxable income, +
9.15% on the next $33,756, +
11.7% on the next $10,000, +
13.7% on the next $16,610, +
14.7% on the amount over $94,121

Alberta10% of taxable income - One Flat rate.

For more details please check the following link:
http://www.cra-arc.gc.ca/tax/allrates/menu-e.html

Regards
FinPro