In most countries there are different types of taxes and levies that must be paid. There are often many variations that exist in states, countries and provinces all around the world. Taxes in Canada are no exception, as there are several sorts that exist that must be followed.

The primary concern of most citizens when it comes to taxes is the federal income tax that is levied by the national government. In Canada, the Canadian Revenue Agency is the governing tax body for the nation. Most provinces also have their own tax agencies as well.

Like the United States, Canada breaks the federal income tax into areas with different rates dependent on your income level. As it is in America, Canada uses a similar format in that the higher your income, the steeper your percentage of taxable income. Those making the largest in earnings theoretically should be paying the highest percentage.

Each province in Canada is also responsible for the levy of income taxes. While the method used to calculate the federal tax is the same at the provincial level, the provinces may determine their own rates. The only exception to this is Quebec, which calculates their income tax in a different method.

The provincial and territorial tax rates vary widely across the board. Depending on where you live, you can have a combined federal/provincial income tax rate anywhere from zero percent all the way up to fifty percent. Again, your annual total earnings determine just what percentage you will have to pay.

Taxes on properties and for corporations and businesses also exist in Canada. Corporation must pay tax on their table income. There is an elementary rate of thirty-eight percent and there is a multiple tiered provincial rate that can be anywhere from one percent to six percent.

For properties, there is a tax on both corporate and private buildings. This tax is used to fund both the local municipalities of the buildings and the cities. This is not an uncommon method of levy for a property.

There are also tax burdens for international and non-resident businesses and individuals that need to be considered. If you are working for a company from another country and residing in Canada for business purposes, there are taxes that must be paid. The same is true if you reside in another country but have rental income or property in Canada. In this case, you must be prepared to pay the taxes on the property and the income earned.

Taxes in Canada, like many other places, span a wide spectrum. Many people only think of their income when it comes to having to pay. However, a person needs to be aware of the many different areas that they may be involved in that nor only requirement payment, but at rates they may not be aware of at the time. It is best to consult a professional tax preparer if you are unsure about what needs to be paid.

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