OUR JURISDICTIONS —

Personal Tax

LAST UPDATED 20/02/2024

AT A GLANCE

General

Canadian residents must pay income tax on their worldwide earnings. To avoid double taxation, Canada has international tax treaties and offers foreign tax credits and deductions. Non-residents must pay Canadian income tax on employment income, business income, and capital gains from selling taxable Canadian property.

Partial-year residents are taxed on their worldwide income only during their time as residents. Personal tax credits, miscellaneous tax credits, and the dividend tax credit are subtracted to find the federal tax liability.

2022 Federal Tax Rates (in Canadian dollars):

0 to 50,197: 15%
50,197 to 100,392: 20.5%
100,392 to 155,625: 26%
155,625 to 221,708: 29%
Over 221,708: 33%

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How Tax Natives works.

Tax Natives is an international tax network that connects Explorers (taxpayer clients) with Natives (qualified and regulated tax advisers) from one jurisdiction to another.

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STEP ONE

Select the 'Ask a question button located on the top of each page and follow through the process to compose your question

STEP TWO

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.

STEP THREE

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 or Territorial Income Taxes

Residents must also pay provincial or territorial income taxes. These taxes are calculated on the federal return and collected by the federal government, except in Quebec. Rates differ across provinces and territories, and some provinces have surtaxes that increase the taxes payable.

Provinces and territories calculate income tax using their own rates, brackets, and credits. All, except Quebec, use the federal definition of taxable income. Quebec has a separate tax system and federal income tax is reduced for its residents.

Top 2022 provincial/territorial tax rates and surtaxes vary by province or territory. Non-residents pay an additional 48% of basic federal tax on income taxable in Canada, not earned in a province or territory.

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Top Marginal Tax Rates

Combined federal and provincial or territorial top marginal tax rates for 2022 are shown below:

Alberta: 48% (Interest and ordinary income), 24% (Capital gains), 34.3% (Eligible Canadian dividends), 42.3% (Non-eligible Canadian dividends)
British Columbia: 53.5%, 26.8%, 36.5%, 48.9%
Manitoba: 50.4%, 25.2%, 37.8%, 46.7%
New Brunswick: 53.3%, 26.7%, 33.5%, 47.7%
Newfoundland and Labrador: 54.8%, 27.4%, 46.2%, 49.0%
Northwest Territories: 47.1%, 23.5%, 28.3%, 36.8%
Nova Scotia: 54.0%, 27.0%, 41.6%, 48.3%
Nunavut: 44.5%, 22.3%, 33.1%, 37.8%
Ontario: 53.5%, 26.8%, 39.3%, 47.7%
Prince Edward Island: 51.4%, 25.7%, 34.2%, 47.0%
Quebec: 53.3%, 26.7%, 40.1%, 48.7%
Saskatchewan: 47.5%, 23.8%, 29.6%, 42.3%
Yukon: 48.0%, 24.0%, 28.9%, 44.0%
Non-resident: 48.8%, 24.4%, 36.7%, 40.8%

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.

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Residence

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.

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Social security contributions

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.

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SPOTLIGHT ARTICLE

El Salvador’s Income Tax Law Revisions: Overseas Profits and Tax

MEMBERSHIP LEVELS —

What are the membership types available?

Curator Native

FREE

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.

A Curator can also provide articles if they wish.

FREE

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.

£65 / month

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.

	Become a curator TAX NATIVES: CURATOR — 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. 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. READ MORE	Become a creator TAX NATIVES: CREATOR — 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.	Become an adviser TAX NATIVES: ADVISOR — Adviser 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	£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

Curator Creator Adviser

FREE

Become a curator

TAX NATIVES: CURATOR —

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

FREE

Become a creator

TAX NATIVES: CREATOR —

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.

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

£65 / month

Become an adviser

TAX NATIVES: ADVISOR —

Adviser

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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Personal Tax

AT A GLANCE

General

Tax experts in the region

How Tax Natives works.

STEP ONE

STEP TWO

STEP THREE

Provincial or Territorial Income Taxes

Top Marginal Tax Rates

Residence

Social security contributions

El Salvador’s Income Tax Law Revisions: Overseas Profits and Tax

What are the membership types available?

Curator Native

FREE

Creator Native

FREE

Adviser Native

£65 / month

Curator

Creator

Adviser

FREE

Curator

FREE

Creator

£65 / month

Adviser

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