logo blue cpa


The 3 Main Taxes Canadians are Required to Pay


In most countries there are taxes that all citizens are required to pay. Within Canada there are 3 main taxes that are paid by each and every person. These 3 main taxes are listed below:


1. Income tax

2. Sales tax

3. Property tax


We will go into further detail later in the article to explain what these 3 taxes are and why we are required to pay them.

Tax Returns

 Book Your FREE Tax Consultation ==> https://rcpenner.com/bookkeeping


In Canada taxes are higher than in some other countries because of the services and the quality of life that is provided. Canada has what is called a graduated tax system. Which means the more money you make the more you will be taxed. Keep in mind Canada is the second largest country in the world, in regard to land mass which has a population of only 38 million people. Some of the most northern parts of Canada are still uninhabited.

Therefore, the contributions that each of us make through our taxes are fundamental in helping to fund things like the education system and the health care system as well as maintaining infrastructure such as bridges and roads.

Let's take a look now at the 3 main taxes that each Canadian is required to pay.


1. Income Tax – As mentioned earlier the tax system in Canada is a graduated or progressive system. The more you earn the more you will be taxed. There are 5 federal tax brackets:

a) 15% up to $48,535

b) 20.5% between $48,535 and $97,069

c) 26% between $97,069 and $150,473

d) 29% between $150,473 and $214,368

e) 33% on any amount exceeding $214,368


There are also different tax brackets for each province. Please click the link to see the tax brackets in your province. https://www.canada.ca/en/financial-consumer-agency/services/financial-toolkit/taxes-quebec/taxes-quebec-2/6.html


2. Sales Tax – In Canada we also have what is called a sales tax. This is added to most goods that we purchase. Some provinces such as Ontario and Quebec have a higher sales tax then others such as Alberta. See below for each percentage that will be added to your purchases:

• Alberta GST 5%

• British Columbia GST & PST 12%

• Manitoba GST & PST 12%

• New Brunswick HST 15%

• Newfoundland and Labrador HST 15%

• Northwest Territories GST 5%

• Nova Scotia HST 15% • Nunavut GST 5%

• Ontario HST 13%

• Prince Edward Island HST 15%

• Quebec GST & QST 14.975%

• Saskatchewan GST & PST 11%

• Yukon GST 5%


3. Property Tax – Property tax is collected by the local government where you live. It is the primary source of income for local governments. Property tax is paid by each property and home- owner each year and is used to pay for things such as schools, fire services, road maintenance, and public services such as garbage removal in your city or town.


 Rebecca C Penner CPA, CGA https://rcpenner.com/contact


As you can see from this article there are quite a few taxes that need to be taken into consideration when either purchasing a home or moving to another province. There are different taxes in each province and each province have their own individual rules. One thing to keep in mind is that here in Canada we live a pretty great life with lots of services that are provided to us if we need to use them. Health care is one major benefit of paying more tax. As a Canadian we don’t have to worry about getting sick. We will always be able to go to the doctor and not be worried we can’t afford the bill.


The 3 main taxes we are all required to pay are worth the services that the funds then bring to our communities. The next time you put your garbage out for pick up remember that service is provided to you because of the tax that you pay.


As always thank you for taking the time to read my blog.


If you have any questions, please don’t hesitate to reach out.



Rebecca C Penner CPA, CGA