Tax in Ontario

[marc de leon]

How much (%) of your income is taxable in Ontario? If I work as an RN earning 30Ca$/hour for example and earn 4800Ca$ per month....how much tax would be deducted? Thanks in advance!

 

[zygurn]

These are the current tax rates by the Federal Gvt:
Federal tax rates for 2011 are:

* 15% on the first $41,544 of taxable income, +
* 22% on the next $41,544 of taxable income (on the portion of taxable income between $41,544 and $83,088), +
* 26% on the next $45,712 of taxable income (on the portion of taxable income between $83,088 and $128,800), +
* 29% of taxable income over $128,800.

and the Province of Ontario:
5.05% on the first $37,774 of taxable income, +
9.15% on the next $37,776, +
11.16% on the amount over $75,550

As far as I know, Canada doesn't use the monthly salary thing some of us are used to, so you either provide the hourly rate/hours you work weekly or your annual income to get an estimate. Assuming you work 40hrs/wk at the $30/h rate you gave, according to this website: http://lsminsurance.ca/calculators/canada/income-tax you'd be earning C$1900 every 2 weeks. This does not include what you pay for Employment Insurance nor what you deposit for your pension nor deductions your company makes for you.

 

[toby]

You don't say whether you are married or single, so I assume single. I assume you worked the entire year in Ontario.

You don't say how much you contributed to CPP, unemployment insurance, and a personal RRSP. These are all deductible expenses, hence reduce your take-home pay but reduce the taxes payable too. I put nothing for these expenses in my tax calculator, so the taxes payable will be too high -- $12,656.

There are simple tax calculators available online. Check on the Deloitte website, for one.

 

[Scanner]

Good discussion, need some information too plz.

If someone has an offer of CAD 38,400.00 in Ontario, how much salary will he take home monthly after deductions and how much will be benefits for 4 children.

Looking forward.......... Thanks

 

[farima]

anyone
please give me info about Banking (all info).

 

[Rossei]

anyone
please give me info about Banking (all info).

What banking info are you looking for? Please, be more specific.

The major players (Big Five) in banking in Canada are:
[1] Royal Bank of Canada (RBC)
[2] Toronto-Dominion Bank (TD Canada Trust)
[3] Bank of Nova Scotia
[4] Bank of Montreal (BMO)
[5] Canadian Imperial Bank of Commerce (CIBC)

Other banks available:
- National Bank of Canada
- HSBC Bank Canada
- Laurentian Bank of Canada
- Canadian Western Bank

 

[Rossei]

I'm sorry for being off-topic here.

TO: Farima

I'm replying here to your PM:

I will bring some money as TC. which Bank will be benefited when i need Cash from those TC. more over, if i get job then how i will get benefit from the money. here in Bangladesh we have a practice of Fixed Deposit or Bond. i need prier knowledge. would you please help me?
wish you good day
Farima

Banking here in Canada will differ a bit from that in Bangladesh. First of all, you can easily get high interest (upto 13%) on FDR account back home whereas there is 1-3% interest refund on your 'SAVING' account here. On the contrary, you may get little higher refund on bonds, shares, mutual funds in terms of 'INVESTMENT' account depending on how secured your investment is. Obviously, the more secured/longer the investment you choose, the lower your interest/profit would be. Some products you can become familiar with:

• Registered Retirement Savings Plan (RRSP)
• Registered Education Savings Plan (RESP)
• Guaranteed Investment Certificate (GIC) - this is kind of FDR
• Tax-Free Saving Account

Once you have a job, you can open RRSP or Tax-Free SAVING (both are tax free) to save on income tax. For a decent job at statrting level, you will most likely pay 30% tax (Income Tax + Govt. Pension + Employment Insurance) of your gross salary. In case of having tax-free account, on top of the interest, the GOVT will return the tax they cut on the amount you've put in those accounts when you file your tax refund each year.

Now, let me brief you a bit about the mejor banks in Ontario:

TD Bank
This is the best for day-to-day banking (withdrawing cash, deposits, paying bills etc.) as TD has frequent branches/ATM's available throughout Ontario. But I must say, it's not good for large cash flow (investment, loans. mortgages, line of credit). As you won't have a banking history/portfolio, they wouldn't value you much. It's also not the best for credit applications.

RBC Bank
This is probably #1 bank in Canada re: growth and worth. RBC is well renowned for investment, loans and so on. But for everyday banking, it may not be the ideal as they don't focus on low-end customers very often.

CIBC Bank
This used to be one of the prominent banks, but couldn't catch up with RBC and TD as both of them merged aggresively into the USA market during the recession period. I found it good for credit applications. It can be considered 'average' for everyday banking.

BMO & Scotia Banks
These two would come at the bottom just becasue they aren't as popular as the top 3. Though BMO started its journey from Montreal, QC; it has its 2nd HQ at Toronto and spread to some extent in Ontario. And Scotiabank will have least branches/customers in this province.

I personally do banking with both TD and CIBC. And I also regularly deal with BMO as my employer is their corporate client. When I first came to Canada as an Int'l student, I had no other choice but to open a student account with TD as there were so many branches around. Ever since, I regret it but didn't take the hassle to change my primary bank.

Let me know if you require more info. Re: TC, I don't know much about it. Visit individual bank sites or GOOGLE it.

FYI: I'm flying to BD with my wife in mid-March and coming back in mid-April. If you want to contact me directly in BD while I'm there, PM me. Thanks.

 

[comix]

very helpful info

 

[subhankardebnath]

I'm sorry for being off-topic here.

TO: Farima

I'm replying here to your PM:
Banking here in Canada will differ a bit from that in Bangladesh. First of all, you can easily get high interest (upto 13%) on FDR account back home whereas there is 1-3% interest refund on your 'SAVING' account here. On the contrary, you may get little higher refund on bonds, shares, mutual funds in terms of 'INVESTMENT' account depending on how secured your investment is. Obviously, the more secured/longer the investment you choose, the lower your interest/profit would be. Some products you can become familiar with:

• Registered Retirement Savings Plan (RRSP)
• Registered Education Savings Plan (RESP)
• Guaranteed Investment Certificate (GIC) - this is kind of FDR
• Tax-Free Saving Account

Once you have a job, you can open RRSP or Tax-Free SAVING (both are tax free) to save on income tax. For a decent job at statrting level, you will most likely pay 30% tax (Income Tax + Govt. Pension + Employment Insurance) of your gross salary. In case of having tax-free account, on top of the interest, the GOVT will return the tax they cut on the amount you've put in those accounts when you file your tax refund each year.

Now, let me brief you a bit about the mejor banks in Ontario:

TD Bank
This is the best for day-to-day banking (withdrawing cash, deposits, paying bills etc.) as TD has frequent branches/ATM's available throughout Ontario. But I must say, it's not good for large cash flow (investment, loans. mortgages, line of credit). As you won't have a banking history/portfolio, they wouldn't value you much. It's also not the best for credit applications.

RBC Bank
This is probably #1 bank in Canada re: growth and worth. RBC is well renowned for investment, loans and so on. But for everyday banking, it may not be the ideal as they don't focus on low-end customers very often.

CIBC Bank
This used to be one of the prominent banks, but couldn't catch up with RBC and TD as both of them merged aggresively into the USA market during the recession period. I found it good for credit applications. It can be considered 'average' for everyday banking.

BMO & Scotia Banks
These two would come at the bottom just becasue they aren't as popular as the top 3. Though BMO started its journey from Montreal, QC; it has its 2nd HQ at Toronto and spread to some extent in Ontario. And Scotiabank will have least branches/customers in this province.

I personally do banking with both TD and CIBC. And I also regularly deal with BMO as my employer is their corporate client. When I first came to Canada as an Int'l student, I had no other choice but to open a student account with TD as there were so many branches around. Ever since, I regret it but didn't take the hassle to change my primary bank.

Let me know if you require more info. Re: TC, I don't know much about it. Visit individual bank sites or GOOGLE it.

FYI: I'm flying to BD with my wife in mid-March and coming back in mid-April. If you want to contact me directly in BD while I'm there, PM me. Thanks.

Thanks for the helpful info. I just need to know few more things. Can one open both RRSP and tax free account both or it's either or? How can tax free account save your income tax? As per my understanding only the interest accumulated in tax free. Plus if I have a job, not business, why do I need to fill in an IT return? By doing so how can I get my tax back?

Looking forward t heard something from you soon.

 

[Rossei]

Thanks for the helpful info. I just need to know few more things. Can one open both RRSP and tax free account both or it's either or? How can tax free account save your income tax? As per my understanding only the interest accumulated in tax free. Plus if I have a job, not business, why do I need to fill in an IT return? By doing so how can I get my tax back?

Looking forward t heard something from you soon.

I believe you can have both TFSA and RRSP.

In both cases, you make the contribution on after-tax income. Say you pay 30% income tax. If you make RRSP contribution from each pay cheque/bi-weekly/monthly; the govt. will pay you back 30% tax that you paid on your contribution when you file tax return every year. For example, if you made $1000 RRSP contribution for a single year; you will get ~$300 in tax return. They are just giving you back the tax you already paid on the RRSP portion of your income. But there is tax on RRSP withdrawals.

For TFSA, income on the investment and withdrawals are tax-free. But the contribution towards TFSA is not tax deductible.

There has been ongoing debate of which to choose over. TFSA is more flexible as it's short-term and can be transferred to RRSP later. But RRSP is long-term goal oriented (mainly for retirement); but can be withdrawn for first-time home buying called HBP.

 

[GinnyPi]

I believe you can have both TFSA and RRSP.

In both cases, you make the contribution on after-tax income. Say you pay 30% income tax. If you make RRSP contribution from each pay cheque/bi-weekly/monthly; the govt. will pay you back 30% tax that you paid on your contribution when you file tax return every year. For example, if you made $1000 RRSP contribution for a single year; you will get $300 in tax return. They are just giving you back the tax you already paid on the RRSP portion of your income. But there is tax on RRSP withdrawals.

For TFSA, your tax is refunded when you withdraw an amount. For above example, if you put $1000 in your TFSA this year and you withdraw the amount next year (considering saving plan maturity), you will get same $300 in tax return the following year.

There has been ongoing debate of which to choose over. TFSA is more flexible as it's short-term and can be transferred to RRSP later. But RRSP is long-term goal oriented (mainly for retirement); but can be withdrawn for first-time home buying called HBP.

This is VERY wrong. Please be careful when giving advice. Play to your strengths only.

Thanks for the helpful info. I just need to know few more things. Can one open both RRSP and tax free account both or it's either or? How can tax free account save your income tax? As per my understanding only the interest accumulated in tax free. Plus if I have a job, not business, why do I need to fill in an IT return? By doing so how can I get my tax back?

Looking forward t heard something from you soon.

To subhankardebnath: Yes, you can have both a TFSA and an RRSP, infact you can have more than one of each as long as the combination of deposits do not exceed your contribution limits.

For TFSAs, there is no tax refund when you contribute, and there is no tax paid when you withdraw. You contribute to TFSAs with post tax dollars and you do not pay taxes on growth, even when you take your money out of a TFSA.

For RRSPs, money in an RRSP is pre-tax, so if it comes off your paycheque automatically, you have never paid taxes on that money and won't receive a refund on filing. If you contribute to your RRSP from post-tax dollars (e.g. out of your bank account), you will get a proportionate refund on your contributions. When you withdraw from your RRSP, you will then pay income taxes on those amounts. Initially the financial institution will withhold some taxes before paying you from your RRSP, and come tax season you may/may not have additional amounts to pay, or even get a refund, depending on your overall income that year.

I'm sure you will sit down with an advisor when you're ready to make the decisions. It is always good to do some research beforehand, and there is also a lot of information online from government websites, but please be wary of armchair pundits online giving you our opinions for free - we are not in any way liable if we misinform you so the onus is on you to verify what we say (myself included )

RE your other question, if you only have a job, you do need to fill out an individual income tax return. If you had a business, you would fill out a business tax return as well. A tax return can be likened to a reconciliation between you and Canada Revenue Agency. You are making a declaration telling them "here is my residency information, family situation, all my income, and the amount of taxes I have paid via employer payroll deductions." Based on the calculations on the tax return forms or software, you will be able to determine if you have over or underpaid taxes. If you have over paid, you can expect a refund, and if you have under paid, you need to pay the remaining amount owed.

 

[Rossei]

This is VERY wrong. Please be careful when giving advice. Play to your strengths only.

My bad, I meant to say something else, instead conveyed wrong message. Anyway, I corrected it to my knowledge.

 

[Gary Goldshmidt]

Actually you can open as many RRSP and TRSA account as you wish as long as you have room please see CRA guidelines. Secondly you do not need to just deal with the big banks there are a lot of options to choose from, you can have accounts with Insurance Companies or other deposit institutions such as trust companies.

If you want to shop for rates visit Cannex Canada you can instantly shop for the best rates for your deposits. If you want the potential of better long term returns consider investments like mutual funds or segregated funds.

I personally like the additional benefits of segregated funds. You can visit my web site for more information
www.stone-hedgefinancialgroup.ca

 

[tomsware]

I'm sorry for being off-topic here.

TO: Farima

I'm replying here to your PM:
Banking here in Canada will differ a bit from that in Bangladesh. First of all, you can easily get high interest (upto 13%) on FDR account back home whereas there is 1-3% interest refund on your 'SAVING' account here. On the contrary, you may get little higher refund on bonds, shares, mutual funds in terms of 'INVESTMENT' account depending on how secured your investment is. Obviously, the more secured/longer the investment you choose, the lower your interest/profit would be. Some products you can become familiar with:

• Registered Retirement Savings Plan (RRSP)
• Registered Education Savings Plan (RESP)
• Guaranteed Investment Certificate (GIC) - this is kind of FDR
• Tax-Free Saving Account

Once you have a job, you can open RRSP or Tax-Free SAVING (both are tax free) to save on income tax. For a decent job at statrting level, you will most likely pay 30% tax (Income Tax + Govt. Pension + Employment Insurance) of your gross salary. In case of having tax-free account, on top of the interest, the GOVT will return the tax they cut on the amount you've put in those accounts when you file your tax refund each year.

Now, let me brief you a bit about the mejor banks in Ontario:

TD Bank
This is the best for day-to-day banking (withdrawing cash, deposits, paying bills etc.) as TD has frequent branches/ATM's available throughout Ontario. But I must say, it's not good for large cash flow (investment, loans. mortgages, line of credit). As you won't have a banking history/portfolio, they wouldn't value you much. It's also not the best for credit applications.

RBC Bank
This is probably #1 bank in Canada re: growth and worth. RBC is well renowned for investment, loans and so on. But for everyday banking, it may not be the ideal as they don't focus on low-end customers very often.

CIBC Bank
This used to be one of the prominent banks, but couldn't catch up with RBC and TD as both of them merged aggresively into the USA market during the recession period. I found it good for credit applications. It can be considered 'average' for everyday banking.

BMO & Scotia Banks
These two would come at the bottom just becasue they aren't as popular as the top 3. Though BMO started its journey from Montreal, QC; it has its 2nd HQ at Toronto and spread to some extent in Ontario. And Scotiabank will have least branches/customers in this province.

I personally do banking with both TD and CIBC. And I also regularly deal with BMO as my employer is their corporate client. When I first came to Canada as an Int'l student, I had no other choice but to open a student account with TD as there were so many branches around. Ever since, I regret it but didn't take the hassle to change my primary bank.

Let me know if you require more info. Re: TC, I don't know much about it. Visit individual bank sites or GOOGLE it.

FYI: I'm flying to BD with my wife in mid-March and coming back in mid-April. If you want to contact me directly in BD while I'm there, PM me. Thanks.

i have 3 specific questions on this:

1. which bank is better for providing bank statement and bank certificates? is there any charge assocaited for providind bank statment and bank certificates?
2. which bank has better online/internet banking system
3. which bank has friendy customer service?

thanks.

 

[Rossei]

i have 3 specific questions on this:

1. which bank is better for providing bank statement and bank certificates? is there any charge assocaited for providind bank statment and bank certificates?
2. which bank has better online/internet banking system
3. which bank has friendy customer service?

thanks.

As I said before, TD bank is the best for everyday needs. It charges $1.50 for a bank statement (used to be free). If you get an appointment with any financial adviser; s/he will just print or write a bank certificate for you free. This bank probably doubles the branches that any other bank has. Hence, there is plenty of ATM/ Branch etc. available. BUT I found TD not to be best in the longer run in terms of loan, mortgage, credit application, line of credit etc. BMO and RBC would be good choice if you're looking forward to settling down here.

I heard Scotia Bank has the best customer service. All banks offer online and telephone banking. You need to browse and check yourself what suits you. But I wouldn't worry about these.

Toronto-Dominion Canada Trust Bank (TD)
Canadian Imperial Bank of Commerce (CIBC)
Royal Bank of Canada (RBC)
Bank of Montreal (BMO)
The Bank of Nova Scotia (Scotiabank)