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Could someone explain how taxation works in Canada (including VAT, compulsory insurances, council tax...). Quick googling says income tax has doubled in 2017.

Could someone explain how taxation works in Canada (including VAT, compulsory insurances, council tax...). Quick googling says income tax has doubled in 2017. edit: Here is a source for doubled tax, looks like google parser is wrong https://pasteboard.co/hMazP1hHs.png https://pasteboard.co/hMazP1hHs.png

Pxtl 9y ago
> Quick googling says income tax has doubled in 2017. reply This is not true, and was likely posted by a conservative hardliners. Canada uses an after-price sales tax like the USA, but in higher quantities - it will vary between 5% and 13% depending on province. Also, all provinces are currently implementing a carbon pricing system, so some provinces will have an additional sales tax on carbon intensive goods like gasoline. Unlike VAT, they're above the printed cost of the time, not included. These have been quite stable for a long time. Also, Canada has income tax. Like the Americans, we run on a graduated income tax system, where you pay no tax at all on the first $11,000ish dollars you earn, and then in each tax bracket you pay increasing percentages on the money that falls within that bracket. There has been modest increases in the highest tax brackets to pay for a cut in the second-lowest bracket. Also some "boutique" exemptions have been closed or reduced recently. In every case, there are taxes paid separately to both the federal government and provincial governments. The biggest rising expense here on Ontario is not taxes, but "hydro" which is what Canadians call electricity (so much of it is generated by hydroelectric dams and power companies market themselves as hydro companies because of it). Ontario has had a history of mismanaging electrical bills, and that process has come to a head and so energy prices have skyrocketed recently. While our taxes are normally somewhat higher than Americans, it hasn't been really a huge problem historically. Only now it's starting to come to a head with cost of living as the crazy housing market has driven mortgages through the roof and the hydro crisis have come together to create a cost-of-living problem in the Toronto area. Finally, we have municipal property taxes (comparable to British council taxes). These are priced based on the value of your real-estate property. These are generally stable, as councils are very price-sensitive and are hesitant to raise them outside of a crisis.
- jankotek 9y ago
  Here is source for doubled tax, looks like google parser is wrong https://pasteboard.co/hMazP1hHs.png https://pasteboard.co/hMazP1hHs.png
  - smnrchrds 9y ago
    That seems to be a case of bad web scraping. If you see the article the numbers were supposedly taken from, you will see compeltely different results: http://taxtips.ca/taxrates/canada.htm http://taxtips.ca/taxrates/canada.htm
- smnrchrds 9y ago
  > In every case, there are taxes paid separately to both the federal government and provincial governments. I would like to just add that unlike the US, where some states do not have state income taxes, all provinces in Canada have provincial income taxes, and with the exception of Alberta, all of them have provincial sales taxes.
  - deleted 9y ago
    [deleted]
- ChemicalWarfare 9y ago
  Beer prices in Ontario are pretty insane (about twice as expensive) compared to the bordering US states even factoring in the exchange rate. I'm used to $11 12 packs of Molson on the MI side of the border, walking into a Beer Store in ON is always a price shock.
  - Pxtl 9y ago
    That's entirely due to sin taxes, though. Not the higher "cost of living". If liquor taxes have an appreciable impact on your budget on a middle class programmer's salary, you have a problem and it's not the money.
- refurb 9y ago
raquo 9y ago
Income taxes: https://simpletax.ca/calculator https://simpletax.ca/calculator In some provinces like BC you also pay approx. $60/month for health insurance. Sales tax is from 0% to 13% depending on province and types of goods / services. Nothing like doubling of income tax happened, not sure why your google says that.
schwap 9y ago
Quick'n'dirty run down: Income tax: province/territory and federal levels Consumption tax: government level (5%) + provincial level (most provinces/territories) (this is close-ish to VAT) property tax: municipal/provincial, like council tax health care cost varies by province/territory. Income tax has definitely not doubled. It's unchanged at the federal level.
mahyarm 9y ago
Basically think of most of canada being california levels of taxation, but cost of consumer goods are higher. Quebec has about %10 more income tax vs california & most of canada.

Pxtl 9y ago

> Quick googling says income tax has doubled in 2017. reply This is not true, and was likely posted by a conservative hardliners. Canada uses an after-price sales tax like the USA, but in higher quantities - it will vary between 5% and 13% depending on province. Also, all provinces are currently implementing a carbon pricing system, so some provinces will have an additional sales tax on carbon intensive goods like gasoline. Unlike VAT, they're above the printed cost of the time, not included. These have been quite stable for a long time. Also, Canada has income tax. Like the Americans, we run on a graduated income tax system, where you pay no tax at all on the first $11,000ish dollars you earn, and then in each tax bracket you pay increasing percentages on the money that falls within that bracket. There has been modest increases in the highest tax brackets to pay for a cut in the second-lowest bracket. Also some "boutique" exemptions have been closed or reduced recently. In every case, there are taxes paid separately to both the federal government and provincial governments. The biggest rising expense here on Ontario is not taxes, but "hydro" which is what Canadians call electricity (so much of it is generated by hydroelectric dams and power companies market themselves as hydro companies because of it). Ontario has had a history of mismanaging electrical bills, and that process has come to a head and so energy prices have skyrocketed recently. While our taxes are normally somewhat higher than Americans, it hasn't been really a huge problem historically. Only now it's starting to come to a head with cost of living as the crazy housing market has driven mortgages through the roof and the hydro crisis have come together to create a cost-of-living problem in the Toronto area. Finally, we have municipal property taxes (comparable to British council taxes). These are priced based on the value of your real-estate property. These are generally stable, as councils are very price-sensitive and are hesitant to raise them outside of a crisis.

jankotek 9y ago
Here is source for doubled tax, looks like google parser is wrong https://pasteboard.co/hMazP1hHs.png https://pasteboard.co/hMazP1hHs.png
- smnrchrds 9y ago
  That seems to be a case of bad web scraping. If you see the article the numbers were supposedly taken from, you will see compeltely different results: http://taxtips.ca/taxrates/canada.htm http://taxtips.ca/taxrates/canada.htm
smnrchrds 9y ago
> In every case, there are taxes paid separately to both the federal government and provincial governments. I would like to just add that unlike the US, where some states do not have state income taxes, all provinces in Canada have provincial income taxes, and with the exception of Alberta, all of them have provincial sales taxes.
- deleted 9y ago
  [deleted]
ChemicalWarfare 9y ago
Beer prices in Ontario are pretty insane (about twice as expensive) compared to the bordering US states even factoring in the exchange rate. I'm used to $11 12 packs of Molson on the MI side of the border, walking into a Beer Store in ON is always a price shock.
- Pxtl 9y ago
  That's entirely due to sin taxes, though. Not the higher "cost of living". If liquor taxes have an appreciable impact on your budget on a middle class programmer's salary, you have a problem and it's not the money.
refurb 9y ago

raquo 9y ago

Income taxes: https://simpletax.ca/calculator https://simpletax.ca/calculator In some provinces like BC you also pay approx. $60/month for health insurance. Sales tax is from 0% to 13% depending on province and types of goods / services. Nothing like doubling of income tax happened, not sure why your google says that.

schwap 9y ago

Quick'n'dirty run down: Income tax: province/territory and federal levels Consumption tax: government level (5%) + provincial level (most provinces/territories) (this is close-ish to VAT) property tax: municipal/provincial, like council tax health care cost varies by province/territory. Income tax has definitely not doubled. It's unchanged at the federal level.

mahyarm 9y ago

Basically think of most of canada being california levels of taxation, but cost of consumer goods are higher. Quebec has about %10 more income tax vs california & most of canada.