Difference Between Taxes
Which taxes have tax rates that change often?
Provincial Taxes
What is income tax, and why do people in Nova Scotia pay it?
What is income tax is money people pay to the government based on how much money they earn? It helps pay for things like schools, hospitals, and other public services.
This type of tax collected by Canadian provinces helps to maintain and build these, which include highways and public transit systems.
Infrastructure
CPP
Canada Pension Plan
True or false: Tax rates are different depending on the province/territory.
True (some provinces like Nova Scotia charge a combined federal and provincial sales tax, some provinces like BC separate the federal and provincial sales taxes, and some provinces like Alberta only charge a federal sales tax)
Which taxes have higher tax rates - federal or provincial?
Federal Taxes
Does Nova Scotia have a tax on the things you buy, like food or clothing?
What is yes, Nova Scotia has a tax called the Harmonized Sales Tax (HST), which is 15%. It’s added to most goods and services you buy, except for some basic items like certain groceries.
Fill in the blank: In Canada, ______ taxes are levied on the profits earned by corporations, while ______ taxes are collected based on individual income.
business and personal
RESP
Registered Education Savings Plan
What is the rate of sales tax in Nova Scotia?
15%
Do business taxes involve personal income?
No
Can people in Nova Scotia get a tax credit if they donate money to charity?
What is yes, if you donate to a registered charity in Nova Scotia, you can claim a tax credit that will reduce the amount of taxes you owe.
Multiple Choice: Which of the following services is funded by provincial taxes in Canada?
A) Military Defense
B) National Parks
C) Public Schools
D) Border Security
c) Public Schools
HST
Harmonized Sales Tax
True or false: You have to pay taxes on everything you buy in Nova Scotia.
False - you don't have to pay taxes for:
What type of files do people pay for personal taxes?
T1 tax return forms
What is the basic personal amount in Nova Scotia, and what does it mean for people?
What is the basic personal amount is the amount of money you can earn without paying provincial income tax? For 2024, it’s about $8,481. If you earn less than that, you don’t pay any provincial income tax.
This essential service, which includes emergency care and preventive medicine, is a primary beneficiary of provincial tax revenue.
Public healthcare
CRA
Canadian Revenue Agency
Define what taxes are
Money that individuals as well as businesses pay to the government is known as taxes.
What type of file do people pay for business taxes?
T2 tax return forms
If a high school student works a part-time job in Nova Scotia, do they have to file a tax return?
What is yes, if a student works and earns income in Nova Scotia, they should file a tax return. They may get some of the money back if they paid too much tax through the year.
True or False: The Goods and Services Tax (GST) in Canada, introduced in 1991, replaced a tax that was applied at every stage of the production process.
True (The GST replaced the Manufacturer’s Sales Tax, which was a turnover tax.)
EI
Employment Insurance
Name 3 things you learned
open-ended