How Much Income Tax Do You REALLY Pay In Canada?

[@maxpayne7419]

Paying tax is definitely painful! I have been paying at the highest rate most of my working life. Ouch. But I choose to think about the positive side of it: schools, police, fire, health care, law and order, military, taking care of less fortunate, roads, traffic lights, safe food and water, etc. Canada isn’t perfect - but I have travelled extensively and it’s tough to beat. PS I really enjoy your channel - keep up the great work!

[@wellbuiltwealth]

Thank you :)

[@davids2009]

Quick question. Investing in Canadian stocks eg. TD, CM, ENB, ect....they pay dividends. Lets say you invest over $1M into these companies directly and collect max of $50K a year in dividends, it is almost 100% tax free if this is your only income per person. Here is the question: if you do the same investment strategy with Canadian ETF's, (example, XEI, VCV) and collect dividends from these ETF's, does it fall into same tax dividend bracket as directly CDN stocks?

[@DjNoTips]

Does either of the first 2 websites include federal tax as well?

[@IREFUSE9]

Thanks for the video, very interesting and useful for a retiree.

[@ka1133]

You seem to have forgotten that there’s also a Health premium tax or whatever you wanna call it in Ontario as well. Something else that comes off my pay.

[@misspethamhouse9072]

That shouldn’t come off your pay…. It’s when you do your ON tax return…

[@Moonstruck89]

Another factor to consider is the widespread job loss and layoffs. Let's say someone earns 150k one year and has no job for next two years. And another person earns 50k each year consistently for 3 years. Both these folks are earning 150k over a 3 years span but the second person is actually making way more money (also probably has their sanity intact): because they are paying less taxes. We need some ways to protect ourselves against economic uncertainties. Currently there aren't many ways a typical salary earner can do that 😢

[@American_Splendor]

I believe there once was a tax-averaging method in Canada, maybe it was difficult to administer or abused

[@kelvinwesterman7725]

I would guess the laid off guy in your example is collecting EI for 2 years

[@ramspace]

Wealth Simple tax calculator is better.

[@johnjakobs6563]

Agreed! I just tried out both and the wealthsimple one allows you to enter other income types like self-employment, capital gains, dividends, etc.

[@TheRecurrence]

Yeah, the author of this video really missed the mark here. Everyone should be looking at the Wealth Simple one

[@markdavis4266]

I'm 44 (37 shhhhh lol) and I plan on leaving Canada over the next year or so. My question is, Is there any good way to take out what I contributed so far to my RRSP's now instead of converting it to a Riff when I officially retire in my 60's?

[@wellbuiltwealth]

kzbin.info/www/bejne/bpCZqmuCm5uCr5Ysi=GHt4kNs8cjGH8L-E

[@scotbarlow213]

I presume that once retired and drawing on RRIF income this would still be accurate (except no more CPP and EI deductiiins) correct ?

[@wellbuiltwealth]

Actually, it depends on age as there are credits you get after 65 that would reduce your tax burden.

[@bluesideupfl510]

Interesting....but all the hidden taxes are the long term killer. Provincial health care, forced accident benefits, property taxes , Gov tax on tax. Tax on buying something the taxes have been paid on already the list goes on and on and on. We need to have an Actuary have a look at this. It was done years ago and demostrated that were at that time actually taxed at 70% +++. Of course if you are a spender that makes your taxation much worse.

[@wellbuiltwealth]

Fraser Institute does research on exactly this.

[@bluesideupfl510]

@@wellbuiltwealth Thanks for the info. Just what I was looking for.

[@Jcap644]

That tax calculator is completly off for Alberta

[@rfung04]

This is what I've been looking for. 👍 Thanks.

[@charlotteplante5402]

Have fun with this calculator? Boy, your idea of fun is a lot different than mine. Lol

[@JS-jh4cy]

Too damn much, and to buy any thing is so damn tax expensive,

[@canders8779]

The Bank of Canada's Consumer Price Index rate of inflation is a complete joke ! It's so necessary to hedge yourself against inflation and taxation. Your principle residence is designed to increase in value for this hedge and the sale of it is tax free. Let's hope they don't go after it ! I find most Canadians are financially illiterate.

[@joyexplores]

oh it fired me up that's for sure

[@jonathanbennettleadership]

Taxes are the cost of living in our society. They are an investment in the social contract, and pay for healthcare, education, infrastructure, defence, the justice system, the public services we use every day. We can all choose to pay way less tax, and then leave way more people behind and pay for things as we go (had an ER bill in the US lately?) or we choose to see tax as an investment in our quality of life and the shared project of the country. Just my .69cents worth…

[@WasifHasanBaig]

What if you pay boatloads of taxes and get shitty service in return.

[@jonathanbennettleadership]

@@WasifHasanBaig what if you sent a kid to public school for 15 years, had your appendix removed, drove on roads, had EMS, public health, and never once questioned that it was simply just there for you. Taxes aren’t transactional; they are your minuscule contribution to the whole.

[@douglacoursiere2269]

​@@jonathanbennettleadershipthat would be Great, if the government just did what the government is supposed to do, and stop spending money on all the extra programs to get them re-elected and squander money because they can!

[@jonathanbennettleadership]

@@douglacoursiere2269I think we can agree here. Efficient and prudent fiscal policy is important. We could disagree maybe on how or where or why one government might choose to spend it, and the ballot box would provide us with a decision there. But, income tax rates won’t change much if we were to get a new government. So for me, complaining about how much tax we pay almost always sounds a bit self-centred and narrow in its perspective. We live together, we all pay in as and when we can, we all benefit. Complain away about fiscal policy decisions-I’m on board there for sure.

[@fedvvvv]

I invested in my RRSP last year and got half of my taxes back. I reinvested that check as well. I was only taxed 15%. The rest is in my Tax Free Savings Account. People have to stop complaining and just get smarter with their money. There are better countries out there and there are far, far worse...

[@arnoldvosloo220]

That's awesome, but if you got half your taxes back because you deposited into your rrsp (and only paid 15% thereafter), then you are definitely not in a high tax bracket and this isn't as much of a problem for you. I would also remind you that just because a few other places on earth would tax you more doesn't mean you should be complacent.

[@fedvvvv]

@@arnoldvosloo220 I'm in the tax bracket specified in the video so my example is relevant. Also, people in much higher tax brackets that are high earners usually are very savvy when it comes to money and know how to lower their taxes in legal ways. I'm not complacent, I'm just satisfied with my income and where it goes because I know what to do with it.

[@arnoldvosloo220]

@@fedvvvv If after your RRSP deduction your average tax rate is 15% then you are making well under 100k. Which is fine - it's good that you are satisfied. A lot of us are not, and maxing out RRSPs doesn't make the problem go away.

[@arnoldvosloo220]

@@DoneByD How does that conflict with what I said?

[@DoneByD]

@@arnoldvosloo220 it's doesn't, sorry deleted that post.

[@mattwaters6987]

Yes i agree it's getting high but the worse part is WACKO just blindly gives it away! 😡

[@OptimisticHominid]

Do you have an example where it’s just given away ie without any justification?

[@fedvvvv]

Another angry conservative talking bs. Lol

[@mattwaters6987]

@OptimisticHominid how about CBC and Canada Post to name a couple.

[@OptimisticHominid]

@@mattwaters6987 These are justified, albeit not everyone understands their value to our society and country.

[@Patrick-pv9pe]

@@OptimisticHominid No they're not, commie.

[@antonguri4923]

The more you get and less money in your pocket😂😂😂😂😂

[@fedvvvv]

Yup. It's like that pretty much everywhere in the world. Can you imagine if it was the opposite?

[@antonguri4923]

I’m not it’s not true in Dubai is not Tax

[@DoneByD]

You'll actually have more money in your pocket the more you make... However the more you make the less per each additional dollar you made goes into your pocket... But in the end you still end up with more dollars in your pocket. It's a smaller piece of a bigger pie but you still end up with more pie

[@eac381]

Its fun to go thru these and see where I should move to after I retire....from NS :-( These numbers show the % of total income but with a progressive tax system it's also fun to see how much tax is attributable to each income level. You reach a point between about 75-100k that with attributable taxes and % of benefits, if it is actually worth working past those income levels

[@OptimisticHominid]

Of course it’s worth working past those points; just put the extra cash into your RRSP and TFSA, and the kids/grandkids RESPs.

[@RobertTorontoYYZ]

It is a strong disincentive to work - I was laid off, got a severance package and if I go back to work 43% goes to Ottawa. That plus the cost of getting to and from work would mean more than 50% would disappear. Makes little sense.

[@maxpayne7419]

If you choose to fail, you will.

[@RobertTorontoYYZ]

@@maxpayne7419 I've paid well over $1 million in tax in my lifetime. Paying 1/2 my gross income to be wasted by Trudeau is not exactly done enthusiastically.

[@OptimisticHominid]

Taxes are necessary. I don’t mind paying them because I know I get a lot back, we all do. I would hope that not too much of my tax contribution is wasted. Let’s face it, our PM’s salary is around three times that of a decent paid job. The compensation package of the Bell CEO is 96 times that of a well paid job. Perhaps that could be fixed somehow.

[@timdumoulin2576]

Income tax is blackmail/extorsion.

[@OptimisticHominid]

@@timdumoulin2576 Next time you or a family member are in hospital for a major medical problem, enjoy the fruits of that extortion and blackmail.

[@IREFUSE9]

What the issue is, IMHO, government spending. Govts shouldn’t run social programs with deficit funding. Governments should make every effort to balance budgets.

[@Patrick-pv9pe]

Taxation is theft. If you like paying it so much why don't you pay mine.

[@OptimisticHominid]

Part of those taxes go to being able to start our OAS at age 65 vs when the Conservatives were last in power and they raised the OAS (and GIS) age to 67.

[@epictetus3406]

Wow, the more you make the more you pay? But I thought the rich weren't paying their fare share? Mmm.

[@wellbuiltwealth]

Mmm.

[@BohemianLifer]

GST is charged five times for the gum in our pocket...

[@Andrew21882]

Property taxes are just ridiculous too, probably the highest in the world. You renovate your house and get penalized for it with the tax increase, pretty discouraging. The middle class is gonna end up on the streets pretty soon if this continues .

[@rich7447]

It depends on the city. Toronto has ridiculously low property taxes. Average mil rate in for cities in OECD countries is between 1% and 2% of the value of property.

[@joshdoddadbod]

The answer is way too much. They practically throw my tax dollars out the window of Trudeaus jet as he flies around the world complaining about other people burning fuel. FJT.

[@OptimisticHominid]

All leaders of developed nations attend international meetings in person; it’s extremely important to be present in person.

[@kellyinPH]

Non residency looks good 👍

[@derekcox6531]

It does until you have to pay exit tax on the way out. The first mistake was working in Canada to begin with

[@kellyinPH]

@@derekcox6531I planned ahead and only have money in registered accounts but planned ahead to avoid paying more tax. Seems every dollar gets taxed at least 3 times lol

[@fedvvvv]

@@derekcox6531 you do know other people in other countries make far less than in Canada, right?

[@arnoldvosloo220]

@@fedvvvv Are you under the false impression that Canadians have the highest incomes in the world? Not even close lol especially when you look at after-tax income

[@ib516]

So does a new Federal Government

[@In_con_ceivable]

We are getting killed financially 😡 Thank you.

[@wellbuiltwealth]

It’s pretty aggressive.

[@Andrew21882]

@@wellbuiltwealthIt’s been all well planned and intentional

[@OptimisticHominid]

No we are not. Consider talking to a financial planner or tax expert; they might be able to help.

[@roysmith4716]

Florida has no state income tax, fastest growing economy in the USA.

[@petewick8627]

“The people get the taxes they deserve”

[@timdumoulin2576]

This country is not worth the cost.

[@jtome84-91]

I paid $96000 in tax last year . This country is a joke .

[@OptimisticHominid]

Well I’ve paid more, and I think this country is brilliant!

[@jtome84-91]

@@OptimisticHominid yeah you think sharing your money 60/40 with the government while they waste it on bullshit makes this country brilliant you’re a clown

[@timdumoulin2576]

@@OptimisticHominid you are full of shit

[@arnoldvosloo220]

@@OptimisticHominid based on your comments on this video you probably haven't even paid that much in your whole life lol but enjoy larping

[@OptimisticHominid]

@@arnoldvosloo220 Whatever!

[@stdenisbros]

Shallow.

[@mikeb6459]

If this is the new direction of your videos you’ve lost me.

[@aroberge1]

Same.

[@misspethamhouse9072]

But it’s good to understand this and use these tools when it comes to efficiently planning for taxes in retirement….

[@OptimisticHominid]

@@misspethamhouse9072I think it’s the suspected motive behind the video.

@@misspethamhouse9072 Anyone using information from the Fraser Institute has a political agenda (see a reply to a comment that was made by the author). There was an earlier video where the political agenda was even clearer. 😞

[@antonguri4923]

The more you get and less money in your pocket😂😂😂😂😂

[@tvted6160]

And the filthy rich pay 0

[@antonguri4923]

@@tvted6160 and you feel good when somebody don’t work and get they seem like you?

[@tvted6160]

@@antonguri4923 not sure where you got that from?!

[@DoneByD]

You'll actually have more money in your pocket the more you make... However the more you make the less per each additional dollar you made goes into your pocket... But in the end you still end up with more dollars in your pocket. It's a smaller piece of a bigger pie but you still end up with more pie.

[@OptimisticHominid]

That’s not true!