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    International: Expatriation Expatriate - Montreal
    Montreal: Work / Tax system

    Tax system

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    For your offers and searches for employment, EasyExpat provides a Job section where to post job offers and CV.
    Last update: 3/06/2006

    Residents in Canada must pay both federal and provincial income tax.

    - Federal income tax rates range from 15.5% to 29%, which is usually deducted at source. Canada's federal government had the following tax brackets for the 2006 tax year:

    • 15.5% up to $36,378
    • 22% from $36,378.01 to $72,756
    • 26% from $72,756.01 to $118,285
    • 29% above $118,28

    Most tax credits (including the basic personal amount of $9,039) are credited at the lowest tax rate of 15.5%, as opposed to the filer's marginal tax rate.

    - Each province adds their own tax on top of the federal tax. Provincial income tax rates depend on the province and are calculated on the percentages of federal income tax payable and range from around 42 to 70%.

    Returns must be filed for provincial income tax. There are credits and deductions for both federal and provincial income tax.

    Social security (called social insurance in Canada) contributions are compulsory for most Canadian residents and are deducted from your gross monthly salary. On earnings above C$3,500 a year the employee pays 3.5% towards social security for benefits.

    More information: http://www.cra-arc.gc.ca

     
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