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Last Updated 22/08/2024
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Ask a questionCanadian residents are taxed on their worldwide income, while non-residents are taxed only on income sourced in Canada, such as employment income and capital gains from Canadian property. Part-year residents are taxed on worldwide income during the period of their residency.
Federal income tax rates progress based on income brackets, and they are adjusted annually to account for inflation and other economic factors.
Both federal and provincial levels offer tax credits and deductions to reduce individuals’ overall tax liability. These include basic personal amounts, credits for low-income individuals, and deductions for specific expenses like childcare or education.
Income from employment, self-employment, investments, and certain benefits like stock options are subject to tax. Specific rules apply to the taxation of investment income, such as dividends and interest, which may be taxed differently depending on the investment duration and the type of income.
Alternative Minimum Tax (AMT) ensures that individuals taking advantage of multiple tax preferences pay at least a minimum amount of tax. Other special taxes include the “kiddie tax” on certain types of income minors earn and rules against income sprinkling using private corporations to shift income to family members taxed at lower rates.
Tax Natives is an international tax network that connects Explorers (taxpayer clients) with Natives (qualified and regulated tax advisers) from one jurisdiction to another.
Ask a question to get startedSelect the 'Ask a question button located on the top of each page and follow through the process to compose your question
Once your question is confirmed and your account is set up, navigate to your user dashboard to view the message exchange between you and your Tax Native.
Each Tax Native has to accept a question from an Explorer before a conversation can begin. Once the Tax Native has accepted your question, a quote will be submitted for approval through the messaging portal.
Provincial and territorial income taxes are in addition to federal taxes. These taxes vary significantly across provinces and territories, with some provinces, like Quebec, having their tax collection systems independent of the federal system.
Combined federal and provincial or territorial top marginal tax rates for 2022 are shown below:
An Alternative Minimum Tax (AMT) applies if adjusted taxable income exceeds CAD 40,000. The taxpayer pays the greater of the regular tax or the AMT. If the AMT is paid, a credit can be used in future years when the regular tax exceeds the AMT.
Residency in Canada for tax purposes depends on an individual’s ongoing relationship with the country. To determine residency, all relevant factors must be considered. Important factors include having a dwelling place in Canada and the residence of one’s spouse and dependents. People are usually seen as residents if they have a permanent home for themselves and their families. Other factors include social and business ties, personal property, club memberships, religious affiliations, driver’s licenses, vehicle registration, and medical insurance coverage.
Citizenship and tax domicile in another country do not affect residency in Canada.
If someone who isn’t considered a resident spends 183 days or more in Canada within a year, they are deemed a resident for the entire year.
If someone is seen as a resident of both Canada and another country according to each country’s tax laws, tax treaties may provide special residency “tie-breaker” rules to prevent conflicts and double taxation.
Typically, under Canadian law and most tax treaties, a person is considered a resident of the country with which they have stronger personal and economic ties. However, other factors may influence this decision.
The tie-breaker rules take precedence over general residency tests under Canadian domestic law.
In 2022, employees living in Canada need to pay contributions to the government pension plan and employment insurance. The maximum amounts are CAD 3,499.80 for the pension plan and CAD 952.74 for employment insurance. However, employees in Quebec pay different amounts: CAD 3,776.10 for the Quebec pension plan, CAD 723.60 for employment insurance, and CAD 434.72 for the Quebec parental insurance plan.
Starting from January 1, 2019, the Canadian and Quebec pension plan contributions were increased. This increase will be introduced gradually over seven years. The new part of the contributions can be deducted from taxes, while a 15% tax credit is available for the base amount (the part that hasn’t been increased).
Self-employed people pay twice the amount of the regular pension plan contributions (up to CAD 6,999.60 in 2022, or CAD 7,552.20 in Quebec). They can deduct half of the base contribution and all of the increased contribution from their taxes. The non-deductible part qualifies for a tax credit. Self-employed individuals don’t have to pay employment insurance premiums but can choose to do so. In Quebec, they need to contribute up to CAD 772.64 for the Quebec parental insurance plan.
MEMBERSHIP LEVELS —
The Curator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.
The Creator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.
The Adviser is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.
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Become a curator
TAX NATIVES: CURATOR — CuratorThe Curator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives. |
Become a creator
TAX NATIVES: CREATOR — CreatorThe Creator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives. However, the Creator has additional responsibilities. They commit to their other Natives that they will produce at least one piece of quality content each quarter – whether an article, video or other valuable content. There are multiple Creator memberships available for each jurisdiction. Where a Curator fulfils their commitments then they receive a 100% discount against their monthly membership fee. |
Become an adviser
TAX NATIVES: ADVISOR — AdviserThe Adviser is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives. The Adviser Native is a care-free soul and has made no other commitments to his fellow Tax Natives to generate content or curate a jurisdictional page. That's cool. However, the Adviser will be eligible to pay the full monthly membership fee. |
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|---|---|---|---|
| Initial admin fee | £250 Free | £250 Free | £250 Free |
| Minimum membership term | 12 months | 12 months | 12 months |
Article contentCreator and Curators must create at least one piece of original, quality-approved content each quarter. |
No | YesCreator and Curators must create at least one piece of original, quality-approved content each quarter. |
No |
| Managing and updating your jurisdiction page |
Yes |
No |
No |
NATIVE
TAX NATIVES: CURATOR —
The Curator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.
However, the Curator has additional responsibilities. They are tasked with the responsibility of managing and updating one of the jurisdiction pages.
There is only one Curator membership available for each jurisdiction.
Where a Curator fulfils their commitments then they receive a 100% discount against their monthly membership fee.
| Initial admin fee | £250 Free |
| Minimum membership term | 12 months |
Article contentCreator and Curators must create at least one piece of original, quality-approved content each quarter. |
No |
| Managing and updating your jurisdiction page | Yes |
TAX NATIVES: CREATOR —
The Creator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.
However, the Creator has additional responsibilities. They commit to their other Natives that they will produce at least one piece of quality content each quarter – whether an article, video or other valuable content.
There are multiple Creator memberships available for each jurisdiction. Where a Curator fulfils their commitments then they receive a 100% discount against their monthly membership fee.
| Initial admin fee | £250 Free |
| Minimum membership term | 12 months |
Content creationCreator and Curators must create at least one piece of original, quality-approved content each quarter. |
YesCreator and Curators must create at least one piece of original, quality-approved content each quarter. |
| Managing and updating your jurisdiction page | No |
TAX NATIVES: ADVISOR —
The Adviser is a fully-fledged member of the Tax Natives team.
As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.
The Adviser Native is a care-free soul and has made no other commitments to his fellow Tax Natives to generate content or curate a jurisdictional page.
That's cool.
However, the Adviser will be eligible to pay the full monthly membership fee.
| Initial admin fee | £250 Free |
| Minimum membership term | 12 months |
Content creationCreator and Curators must create at least one piece of original, quality-approved content each quarter. |
No |
| Managing and updating your jurisdiction page | No |
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