Types of taxes in Canada…

Taxes in general are a mandatory fee or financial charge levied by any government on an individual or an organisation. Taxes act as funds for the government and are used for different public expenditure programs. When we talk about taxes in Canada, there are various categories of taxes depending upon various sectors. The taxes are divides into various slabs and the interest is calculated based upon the earnings of an individual. The taxes are as follows :-

• Income Tax
• Sales Tax
• Property Tax
• Custom duties
• Health services Tax

Income Tax :-
An Income tax is a tax imposed on individuals or entities in respect of the income earned by them. Income tax is calculated as the product of a tax rate multiplied by the taxable income. Taxation rates vary depending  upon  the  type  and income of the taxpayer. Income  tax  in  Canada  is  levied on the basis of the given table.

Sales Tax :-
Sales tax is a form of tax paid to a governing body for the sale of goods and services. Sales tax in general is an indirect tax and is charged at the point of buy or exchange of certain taxable goods, charged as a percentage of  the  value  of  the  product. In

Canada, we have 3 types of sales tax namely

1 Goods and Services
Tax (GST).

2 Harmonized Sales
Tax (HST).
3Provincial Sales Tax
(PST).

Sales tax in Canada is applied province by province on the basis of the given table.

Property Tax:-
A property tax is a tax on the value of a property. The tax is levied by the governing authority of the jurisdiction in which the property is located. In Canada, when you buy a property, you pay a provincial transfer tax that varies from province to province but can beA property tax is a tax on the value of a property. The tax is levied by the governing authority of the jurisdiction in which the property is located. In Canada, when you buy a property, you pay a provincial transfer tax that varies from province to province but can be around 1% on the first 200,000,and 2% on the balance. Some exemptions may also be applied if this is your first property purchase in Canada.

Custom Duties:-
Custom duties refers to tax imposed on goods when they are transported across international borders. In simple terms, this tax is levied on the import and export of goods. In Canada, the rate of this tax is 5%. This tax must be paid at the time of entry and is collected at the border unless the goods are going directly to a bonded warehouse. The government uses this duty to raise revenues, safeguard domestic industries, and regulate movement of goods.

Health Service Tax:-

Any medical establishment

offering any kind of health check up from a medical set up center, a hospital or health service providing facility are supposed to pay the the service tax. The service tax on health in Canada can rage from 726 CAD to 41,916 CAD annually.

But has there been any change in these taxes from the last year. Have they increased or decreased ?

Well ,the taxes haven’t increased yet since the previous year but it is being said that the taxes will increase by 2-3 percent in the coming year based upon the reports. Income tax is the one that is to be affected the most in the coming year. The Federal tax brackets inCanada are going to increase by 1% based upon the inflation. It need to be kept in mind that taxes of the current year are paid off on 30^th of April of the next year. So this was the information related to types of taxes in Canada. We hope you found it useful.

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