Posted October 09, 2018 11:07:59As you know, you pay your taxes at the end of the month.
Your tax bill is paid in instalments until the end date, which varies based on your income.
The amount of income tax you owe is also subject to adjustment depending on the type of income you earn.
If you earn $150,000 or more in 2017, you’ll pay $12,000 in income tax on your 2017 income.
For example, if you earn about $120,000 and you earn less than $140,000, you’d owe $13,000.
If you earn between $120 and $150 for a family of four, you might owe $30,000 ($120 + $120) in income taxes on your 2016 income.
To see how much your taxes might be due, we’ll first look at the 2018 income tax brackets.
The 2018 income taxes bracketTax brackets are divided into three tax brackets, with a top rate of 35%, 25% and 15%.
You’ll pay federal, provincial and municipal income taxes in the following income brackets:In 2018, federal income taxes are assessed on the taxable income of people who earn between 25 and 99% of the median income in their area.
(For more information, see Income and expenses information below.)
Your provincial or municipal income tax is assessed on your taxable income, but not income earned in the province or municipality.
This means your income will be taxed in the municipality or province where you live.
You’ll also pay income tax in Quebec.
You pay income taxes at your provincial, municipal or federal level.
The federal and provincial income tax rates apply to all individuals, regardless of where they live.
You also pay federal and municipal taxes on wages and salaries.
The provincial and federal rates apply only to individuals who are resident in your province or territory.
Tax deductions are available to Canadians who live in more than one province.
You can deduct a certain amount of federal, or provincial, or municipal, income tax paid on your federal or provincial income taxes, if:You also have to pay federal income tax at the same rate as someone who is resident in a different province.
Tax-free savings account (TFSA) withdrawalsIf you use a TFSA, you can deduct the amount of your TFSA withdrawals as taxable income.
TFSA withdrawal limits vary from country to country.
Learn more about how to withdraw your TFSP contributions.
In 2018 and 2019, you also can deduct interest on up to $10,000 of TFSA contributions.
If interest payments exceed your TFS contribution limit, you must pay federal tax on the interest.
You must also pay any tax that is due on the TFSA.
Learn more about TFSA deductions.