Canadian federal
personal income tax
Canadian federal income tax is calculated based on taxable
income, then
non-refundable tax credits are deducted to determine the net amount
payable. For 2009, every taxpayer can earn taxable
income of $10,320 ($9,600 in 2008) before paying any federal tax.
The basic personal tax credit
is calculated by multiplying the tax rate for the lowest
tax bracket by the basic personal
amount. The 2009 tax credit is 15% x $10,320 = $1,548 ($1,440 in 2008).
See our Personal Income Tax page for links to tables of
personal income tax rates and personal tax credits for all provinces and
territories.
For links to the latest tax return forms on the Canada Agency
(CRA)
website, and information on filing your tax return, see our Filing
Your Return page.
Provincial or territorial income taxes are paid in addition
to the federal taxes, based on where the taxpayer resides on December 31
of the tax year. To see the combined federal and provincial/territorial tax rates, see the tables of Personal
Income Tax Rates. These tables also include the marginal tax rates for
capital gains, and both types of Canadian dividends. To estimate your taxes payable, use our Canadian
Tax Calculator.
See also:
Government
Programs and Services for Canadians
