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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:

Dividend tax credit

Canadian Tax Calculator

Federal tax brackets and rates

Federal Budgets

Government Programs and Services for Canadians

 

Federal Government Links

Canada Revenue Agency home page - English  - Français

Service Canada

Canada Business - Service for Entrepreneurs - all provinces/territories

Income Tax Act and Regulations

Canada Pension Plan and Regulations

Employment Insurance Act and Regulations

Excise Tax Act and Regulations (includes Goods & Services Tax)

Old Age Security Act and Regulations

 

 

Revised: April 23, 2010

 

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