Taxes
The percentage of your income that you have to pay in taxes. This tells you how much of your income will go to taxes.
What is a tax rate?
A federal program, starting in July 2025, providing monthly, tax-free, direct financial support for low-income, working-age Canadians with disabilities.
What is the CDB - the Canada Disability Benefit?
A tax on specific goods, like gasoline or alcohol. This tax makes things more expensive.
What is an excise tax?
A refundable federal tax credit designed to support low-income individuals and families who are in the workforce. It helps supplement earnings for those with modest incomes.
What is the CWB - the Canada Workers Benefit?
Money that is set aside while you work to give you income when you retire. It is deducted from your pay.
What is the CPP - the Canadian Pension Plan?
Something that lowers the amount of your income that gets taxed. Donating to a charity can give you this.
What is a tax deduction?
An extra benefit given to parents in Ontario to help raise children.
What is the OCB - the Ontario Child Benefit?
A tax you pay when you buy something in certain provinces in Canada.
What is PST - the Provincial Sales Tax?
Money the government gives to people who lose their job, to help them while they look for a new one. This is deducted from your pay.
What is EI - Employment Insurance?
The government organization that collects taxes in Canada.
What is the CRA - the Canadian Revenue Agency?
Something that directly lowers the amount of tax you owe. It reduces the amount of tax you have to pay.
What is a tax credit?
Money you get back if you paid too much in taxes. If you get this, it means you paid more taxes than you needed to.
What is a refund?
People who own land or buildings have to pay this.
What is a property tax?
This is a combined, tax-free monthly payment from the Ontario government to help low/ moderate income residents with energy costs, property taxes, and sales tax. It bundles three credits—Ontario Sales Tax Credit, Ontario Energy and Property Tax Credit, and Northern Ontario Energy Credit—into payments issued on the 10th of each month.
What is the OTB - the Ontario Trillium Benefit?
This is the 13% tax added to most goods and services you buy. 5% goes to the federal government and 8% goes to the Ontario government. Some items have this and some don't. It is the GST and PST combined.
What is the HST - the Harmonized Sales Tax?
A tax on the money you earn from working. If you have a job, you have to pay this to the government.
What is income tax?
Money the government gives to families to help with the cost of raising children.
What is the CCB- the Canadian Child Benefit?
A tax you pay when you buy something. The GST and PST are types of this tax.
What is a consumption tax?
A tax-free, quarterly federal payment designed to return proceeds from the federal pollution pricing system to households. Sometimes give as one payment.
What is the CCR - the Canada Carbon Rebate?
A way to save money for when you retire from working.
What is an RRSP - Registered Retirement Savings Plan?
The amount of money you earn that you have to pay taxes on. This is your total income minus any deductions.
What is taxable income?
A tax-free quarterly income from the CRA to help people with low incomes to offset the service and sales tax they pay.
That is the GST/HST credit?
A tax you pay when you buy most things in Canada. This is added to the price of many items you buy at the store.
What is the GST - the Goods and Services Tax?
The largest single expense for Canadian families, consuming over 42% of the average household's income—more than food, shelter, and clothing combined.
What are taxes?
A system where people who earn more money pay a higher percentage of their income in taxes.
What is a Progressive Tax System?