How to avoid paying hefty tax as much as possible

[AdilKhan1012]

Hi everyone,
How to avoid paying tax on income? Should I invest in TFSA and RRSP? or multiple TFSA or RRSP?

 

[steaky]

How much is considered hefty?

 

[canuck78]

Hi everyone,
How to avoid paying tax on income? Should I invest in TFSA and RRSP? or multiple TFSA or RRSP?

You will still have to pay quite lot of taxes but you can offset some taxes. If you also want to use the services in Canada you need to be willing to pay taxes. What to do depends on your income and work situation. If you don’t want to pay taxes Canada is probably not the place for you but you also have to be ready to pay for healthcare, schooling, have no social safety net, etc.

 

[torontosm]

Hi everyone,
How to avoid paying tax on income? Should I invest in TFSA and RRSP? or multiple TFSA or RRSP?

Invest in both if you can. Each serves a different purpose, and is funded differently (pre-tax vs. post-tax money), but both are invaluable for proper tax planning.

 

[deadbird]

Hi everyone,
How to avoid paying tax on income? Should I invest in TFSA and RRSP? or multiple TFSA or RRSP?

There are tax avoidance strategies. These become available when you make around $1M+ / year and you can pay the fees for an expensive tax accountant. Until then, suck it up.

 

[Original]

Hi everyone,
How to avoid paying tax on income? Should I invest in TFSA and RRSP? or multiple TFSA or RRSP?

Great question. Both TFSA and RRSP are fantastic options for minimizing your tax burden. RRSP contributions allow you to minimize your taxable income. Both RRSP and TFSA will let your contributions grow tax-free. One may be preferable to the other depending on your personal circumstances, but there is nothing that stops your from using both.

You can use both accounts to hold a variety of investments, like cash, stocks, bonds, ETFs etc. A diversified portfolio with a balanced mix can help you maximize your growth while minimizing the risks.

Every bank offers these.

 

[gurpreet.ts]

One important thing to keep in mind is that RRSP is not tax saving, it's tax deferral. You pay tax on it when you withdraw money.