Canadians are subject to various taxes.

• Federal Income Tax
• Provincial Income Tax
• Alternative Minimum Tax
• Withholding Tax
• Consumption Taxes

Tax planning is our right to take advantage of each available tax deduction and tax credit.

Learn about sources of taxable income.

Federal Income Tax

• “temporary” measure introduced in 1917 to pay for World War I
• voluntary: based on honest reporting
• progressive: tax rates increase as income increases

Provincial Income Tax

• % of marginal federal tax
• usually 40-50% of federal tax owing

Alternative Minimum Tax

• taxes certain forms of income missed by regular taxes

Withholding Tax

Consumption Taxes

• Goods & Services Tax (GST)
  • 6%
• Provincial Sales Tax (PST)
  • 8% in Ontario
• "Sin Tax"
  • e.e., tax on alcohol, tobacco, gasoline, gas guzzlers
• Premium Tax
  • levied provincially
  • life insurance: 2% (Ontario)