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How A lot Is Revenue Tax In Canada? Effectively, It Relies upon On The place You Dwell & Work

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Provincial Revenue Tax Charges

The place you reside in Canada impacts your price of residing considerably, and this contains the quantity of tax you pay on the earnings you earn. We will’t get into the specifics of earnings tax for every province and territory on this piece, however you possibly can see them right here. As an alternative, we’re going to dig into what taxes seem like for a median newcomer in Canada in a few of the extra populated provinces. 

We’re assuming a wage of $52,762 for this hypothetical newcomer. We’re additionally assuming no different earnings, no deductions, no RRSP contributions, no dividends, and no capital good points or losses. 

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Revenue Taxes In Ontario in 2023

A newcomer who earned $52,762 in Ontario in 2023 would pay the next private earnings taxes, in response to the Turbo Tax Private Revenue calculator: 

Federal Tax: $4,890

Ontario Provincial Tax: 2,598

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CPP/EI Premiums: $3,791

Whole Tax: $11,280

Revenue Taxes in BC in 2023

Federal Tax: $4,890

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Ontario Provincial Tax: $2,046

CPP/EI Premiums: $3,791

Whole Tax: $10,728

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Revenue Taxes in Alberta in 2023

Federal Tax: $4,890

Ontario Provincial Tax: $2,797

CPP/EI Premiums: $3,791

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Whole Tax: $11,478

Revenue Taxes in Prince Edward Island in 2023

Federal Tax: $4,890

Ontario Provincial Tax: $4,361

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CPP/EI Premiums: $3,791

Whole Tax: $13,043

As you possibly can see, the federal taxes stay the identical irrespective of which province the employee lives and works in. Nevertheless, the provincial tax price does fluctuate. 

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Don’t make the error of concluding that BC has the bottom tax charges based mostly on this instance although. Every province has its personal tax-free earnings limits and tax brackets, so the most cost effective province for you (by way of earnings taxes payable) will rely upon how a lot you earn yearly and what tax credit you is likely to be eligible for. 

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