Taxes
Canada — Tax: Income Tax
Canada applies income tax at both federal and provincial or territorial levels, administered by the Canada Revenue Agency (CRA) federally, with provincial and territorial governments also administering their own income tax systems. Individuals generally report worldwide income when they are Canadian tax residents. Tax categories include employment income, business income, investment income, and other taxable income. Rates vary by income level and province, and tax obligations depend on residency status.
Key facts
- Canada has a federal income tax system administered by the Canada Revenue Agency.
- Provincial and territorial governments also administer their own income tax systems.
- Tax categories include employment income, business income, investment income, and other taxable income.
- Rates vary by income level and province, and tax obligations depend on residency status.
Filing Obligations
Canadian residents generally file annual income tax returns to report income, claim eligible benefits and calculate tax obligations, through the CRA. Common supporting records include income statements, employment records, investment statements, and deduction documentation. Deadlines depend on individual circumstances, and new residents may have additional reporting considerations. Source: Canada Revenue Agency.
Social Contributions
Canadian workers and employers contribute to government programmes through payroll deductions and employer contributions. Main programmes: the Canada Pension Plan (CPP), providing retirement, disability and survivor benefits for eligible contributors; and Employment Insurance (EI), providing temporary financial assistance for eligible unemployed workers. Source: Government of Canada.