Income Tax

Income tax is a tax levied by the federal and provincial governments on your earnings, including wages, salaries, investment income, and self-employment income.

In Canada, income tax is calculated based on a progressive tax system, meaning that higher earners pay a higher percentage of their income in taxes.

You are required to file an income tax return each year by a specific deadline (typically April 30th).

You can reduce your income tax liability by claiming various deductions and credits, such as RRSP contributions, childcare expenses, and medical expenses.

Understanding Canadian income tax laws is important for managing your finances and ensuring you are paying the correct amount of taxes.

• Related Terms: Tax Return, Taxes, CRA, Tax Brackets, Deductions, Credits