How will fall of Canadian dollar affect your buying?

[drewincanada]

Ontarian with $80,000 income

30% income tax

13% sales tax

 

 

There are two sales taxes in Canada - provincial and federal. In Ontario, the provincial sales tax is 8%, and federal sales tax is 5%, for a grand total of 13%.

 

We're also charged both provincial and federal income tax. Here are the federal tax rates:

 

• 15% on the first $37,885 of taxable income, +

• 22% on the next $37,884 of taxable income (on the portion of taxable income between $37,885 and $75,769), +

• 26% on the next $47,415 of taxable income (on the portion of taxable income between $75,769 and $123,184), +

• 29% of taxable income over $123,184.

 

And Ontario's provincial tax rates are:

 

• 6.05% on the first $36,020 of taxable income, +

• 9.15% on the next $36,021, +

• 11.16% on the amount over $72,041.

 

So...

 

For someone earning a middle income of $80,000/year, they're paying $24,141.43 in combined income tax = 30%.