How Much Income Tax Do You REALLY Pay In Canada?

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How Much Income Tax Do You REALLY Pay In Canada?

Рет қаралды 7,518

Күн бұрын

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DISCLAIMER: All videos on this channel (including this one) are for educational or entertainment purposes only. They are not (and are not intended to be) financial, investment or legal advice. It is our firm position that everyone has a unique situation and should seek professional advice on how best to navigate it. Rhys Martell is a Chartered Investment Manager (CIM), a Fellow of the Canadian Securities Industry (FCSI), a Qualified Associate Financial Planner (QAFP) and more. However, he is not registered to provide investment advice and, therefore, does not provide specific investment recommendations. Those looking for specific investment advice should seek out a registered professional.

Пікірлер: 108

@maxpayne7419 3 ай бұрын

Paying tax is definitely painful! I have been paying at the highest rate most of my working life. Ouch. But I choose to think about the positive side of it: schools, police, fire, health care, law and order, military, taking care of less fortunate, roads, traffic lights, safe food and water, etc. Canada isn’t perfect - but I have travelled extensively and it’s tough to beat. PS I really enjoy your channel - keep up the great work!

@wellbuiltwealth 3 ай бұрын

Thank you :)

@IREFUSE9 3 ай бұрын

Thanks for the video, very interesting and useful for a retiree.

@Moonstruck89 3 ай бұрын

Another factor to consider is the widespread job loss and layoffs. Let's say someone earns 150k one year and has no job for next two years. And another person earns 50k each year consistently for 3 years. Both these folks are earning 150k over a 3 years span but the second person is actually making way more money (also probably has their sanity intact): because they are paying less taxes. We need some ways to protect ourselves against economic uncertainties. Currently there aren't many ways a typical salary earner can do that 😢

@retired_mex 3 ай бұрын

I believe there once was a tax-averaging method in Canada, maybe it was difficult to administer or abused

@ramspace 3 ай бұрын

Wealth Simple tax calculator is better.

@johnjakobs6563 3 ай бұрын

Agreed! I just tried out both and the wealthsimple one allows you to enter other income types like self-employment, capital gains, dividends, etc.

@charlotteplante5402 11 күн бұрын

Have fun with this calculator? Boy, your idea of fun is a lot different than mine. Lol

@markdavis4266 3 ай бұрын

I'm 44 (37 shhhhh lol) and I plan on leaving Canada over the next year or so. My question is, Is there any good way to take out what I contributed so far to my RRSP's now instead of converting it to a Riff when I officially retire in my 60's?

@wellbuiltwealth 3 ай бұрын

kzfaq.info/get/bejne/bsVmrJt9y5yzqWg.htmlsi=GHt4kNs8cjGH8L-E

@rfung04 3 ай бұрын

This is what I've been looking for. 👍 Thanks.

@ka1133 3 ай бұрын

You seem to have forgotten that there’s also a Health premium tax or whatever you wanna call it in Ontario as well. Something else that comes off my pay.

@misspethamhouse9072 3 ай бұрын

That shouldn’t come off your pay…. It’s when you do your ON tax return…

@canders8779 2 ай бұрын

The Bank of Canada's Consumer Price Index rate of inflation is a complete joke ! It's so necessary to hedge yourself against inflation and taxation. Your principle residence is designed to increase in value for this hedge and the sale of it is tax free. Let's hope they don't go after it ! I find most Canadians are financially illiterate.

@joyexplores Ай бұрын

oh it fired me up that's for sure

@fedvvvv 3 ай бұрын

I invested in my RRSP last year and got half of my taxes back. I reinvested that check as well. I was only taxed 15%. The rest is in my Tax Free Savings Account. People have to stop complaining and just get smarter with their money. There are better countries out there and there are far, far worse...

@arnoldvosloo220 3 ай бұрын

That's awesome, but if you got half your taxes back because you deposited into your rrsp (and only paid 15% thereafter), then you are definitely not in a high tax bracket and this isn't as much of a problem for you. I would also remind you that just because a few other places on earth would tax you more doesn't mean you should be complacent.

@fedvvvv 3 ай бұрын

@@arnoldvosloo220 I'm in the tax bracket specified in the video so my example is relevant. Also, people in much higher tax brackets that are high earners usually are very savvy when it comes to money and know how to lower their taxes in legal ways. I'm not complacent, I'm just satisfied with my income and where it goes because I know what to do with it.

@arnoldvosloo220 3 ай бұрын

@@fedvvvv If after your RRSP deduction your average tax rate is 15% then you are making well under 100k. Which is fine - it's good that you are satisfied. A lot of us are not, and maxing out RRSPs doesn't make the problem go away.

@arnoldvosloo220 3 ай бұрын

@@DoneByD How does that conflict with what I said?

@DoneByD 3 ай бұрын

@@arnoldvosloo220 it's doesn't, sorry deleted that post.

@bluesideupfl510 3 ай бұрын

Interesting....but all the hidden taxes are the long term killer. Provincial health care, forced accident benefits, property taxes , Gov tax on tax. Tax on buying something the taxes have been paid on already the list goes on and on and on. We need to have an Actuary have a look at this. It was done years ago and demostrated that were at that time actually taxed at 70% +++. Of course if you are a spender that makes your taxation much worse.

@wellbuiltwealth 3 ай бұрын

Fraser Institute does research on exactly this.

@bluesideupfl510 3 ай бұрын

@@wellbuiltwealth Thanks for the info. Just what I was looking for.

@jonathanbennettleadership 3 ай бұрын

Taxes are the cost of living in our society. They are an investment in the social contract, and pay for healthcare, education, infrastructure, defence, the justice system, the public services we use every day. We can all choose to pay way less tax, and then leave way more people behind and pay for things as we go (had an ER bill in the US lately?) or we choose to see tax as an investment in our quality of life and the shared project of the country. Just my .69cents worth…

@WasifHasanBaig 3 ай бұрын

What if you pay boatloads of taxes and get shitty service in return.

@jonathanbennettleadership 3 ай бұрын

@@WasifHasanBaig what if you sent a kid to public school for 15 years, had your appendix removed, drove on roads, had EMS, public health, and never once questioned that it was simply just there for you. Taxes aren’t transactional; they are your minuscule contribution to the whole.

@douglacoursiere2269 3 ай бұрын

@@jonathanbennettleadershipthat would be Great, if the government just did what the government is supposed to do, and stop spending money on all the extra programs to get them re-elected and squander money because they can!

@jonathanbennettleadership 3 ай бұрын

@@douglacoursiere2269I think we can agree here. Efficient and prudent fiscal policy is important. We could disagree maybe on how or where or why one government might choose to spend it, and the ballot box would provide us with a decision there. But, income tax rates won’t change much if we were to get a new government. So for me, complaining about how much tax we pay almost always sounds a bit self-centred and narrow in its perspective. We live together, we all pay in as and when we can, we all benefit. Complain away about fiscal policy decisions-I’m on board there for sure.

@JS-jh4cy 2 ай бұрын

Too damn much, and to buy any thing is so damn tax expensive,

@scotbarlow213 2 ай бұрын

I presume that once retired and drawing on RRIF income this would still be accurate (except no more CPP and EI deductiiins) correct ?

@wellbuiltwealth 2 ай бұрын

Actually, it depends on age as there are credits you get after 65 that would reduce your tax burden.

@Jcap644 3 ай бұрын

That tax calculator is completly off for Alberta

@user-zu9go2fm8g 3 ай бұрын

It is a strong disincentive to work - I was laid off, got a severance package and if I go back to work 43% goes to Ottawa. That plus the cost of getting to and from work would mean more than 50% would disappear. Makes little sense.

@maxpayne7419 3 ай бұрын

If you choose to fail, you will.

@user-zu9go2fm8g 3 ай бұрын

@@maxpayne7419 I've paid well over $1 million in tax in my lifetime. Paying 1/2 my gross income to be wasted by Trudeau is not exactly done enthusiastically.

@antonguri4923 3 ай бұрын

The more you get and less money in your pocket😂😂😂😂😂

@tvted6160 3 ай бұрын

And the filthy rich pay 0

@antonguri4923 3 ай бұрын

@@tvted6160 and you feel good when somebody don’t work and get they seem like you?

@tvted6160 3 ай бұрын

@@antonguri4923 not sure where you got that from?!

@DoneByD 3 ай бұрын

You'll actually have more money in your pocket the more you make... However the more you make the less per each additional dollar you made goes into your pocket... But in the end you still end up with more dollars in your pocket. It's a smaller piece of a bigger pie but you still end up with more pie.

@OptimisticHominid 3 ай бұрын

That’s not true!

@OptimisticHominid 3 ай бұрын

Taxes are necessary. I don’t mind paying them because I know I get a lot back, we all do. I would hope that not too much of my tax contribution is wasted. Let’s face it, our PM’s salary is around three times that of a decent paid job. The compensation package of the Bell CEO is 96 times that of a well paid job. Perhaps that could be fixed somehow.

@timdumoulin2576 3 ай бұрын

Income tax is blackmail/extorsion.

@OptimisticHominid 3 ай бұрын

@@timdumoulin2576 Next time you or a family member are in hospital for a major medical problem, enjoy the fruits of that extortion and blackmail.

@IREFUSE9 3 ай бұрын

What the issue is, IMHO, government spending. Govts shouldn’t run social programs with deficit funding. Governments should make every effort to balance budgets.

@Patrick-pv9pe 2 ай бұрын

Taxation is theft. If you like paying it so much why don't you pay mine.

@mattwaters6987 3 ай бұрын

Yes i agree it's getting high but the worse part is WACKO just blindly gives it away! 😡

@OptimisticHominid 3 ай бұрын

Do you have an example where it’s just given away ie without any justification?

@fedvvvv 3 ай бұрын

Another angry conservative talking bs. Lol

@mattwaters6987 3 ай бұрын

@OptimisticHominid how about CBC and Canada Post to name a couple.

@OptimisticHominid 3 ай бұрын

@@mattwaters6987 These are justified, albeit not everyone understands their value to our society and country.

@Patrick-pv9pe 2 ай бұрын

@@OptimisticHominid No they're not, commie.

@eac381 3 ай бұрын

Its fun to go thru these and see where I should move to after I retire....from NS :-( These numbers show the % of total income but with a progressive tax system it's also fun to see how much tax is attributable to each income level. You reach a point between about 75-100k that with attributable taxes and % of benefits, if it is actually worth working past those income levels

@OptimisticHominid 3 ай бұрын

Of course it’s worth working past those points; just put the extra cash into your RRSP and TFSA, and the kids/grandkids RESPs.

@OptimisticHominid 3 ай бұрын

Part of those taxes go to being able to start our OAS at age 65 vs when the Conservatives were last in power and they raised the OAS (and GIS) age to 67.

@Andrew21882 3 ай бұрын

Property taxes are just ridiculous too, probably the highest in the world. You renovate your house and get penalized for it with the tax increase, pretty discouraging. The middle class is gonna end up on the streets pretty soon if this continues .

@rich7447 3 ай бұрын

It depends on the city. Toronto has ridiculously low property taxes. Average mil rate in for cities in OECD countries is between 1% and 2% of the value of property.

@epictetus3406 2 ай бұрын

Wow, the more you make the more you pay? But I thought the rich weren't paying their fare share? Mmm.

@wellbuiltwealth 2 ай бұрын

Mmm.

@BohemianLifer 3 ай бұрын

GST is charged five times for the gum in our pocket...

@roysmith4716 3 ай бұрын

Florida has no state income tax, fastest growing economy in the USA.

@joshdoddadbod 3 ай бұрын

The answer is way too much. They practically throw my tax dollars out the window of Trudeaus jet as he flies around the world complaining about other people burning fuel. FJT.

@OptimisticHominid 3 ай бұрын

All leaders of developed nations attend international meetings in person; it’s extremely important to be present in person.

@kellyinPH 3 ай бұрын

Non residency looks good 👍

@derekcox6531 3 ай бұрын

It does until you have to pay exit tax on the way out. The first mistake was working in Canada to begin with

@kellyinPH 3 ай бұрын

@@derekcox6531I planned ahead and only have money in registered accounts but planned ahead to avoid paying more tax. Seems every dollar gets taxed at least 3 times lol

@fedvvvv 3 ай бұрын

@@derekcox6531 you do know other people in other countries make far less than in Canada, right?

@arnoldvosloo220 3 ай бұрын

@@fedvvvv Are you under the false impression that Canadians have the highest incomes in the world? Not even close lol especially when you look at after-tax income

@ib516 3 ай бұрын

So does a new Federal Government

@In_con_ceivable 3 ай бұрын

We are getting killed financially 😡 Thank you.

@wellbuiltwealth 3 ай бұрын

It’s pretty aggressive.

@Andrew21882 3 ай бұрын

@@wellbuiltwealthIt’s been all well planned and intentional

@OptimisticHominid 3 ай бұрын

No we are not. Consider talking to a financial planner or tax expert; they might be able to help.

@jtome84-91 3 ай бұрын

I paid $96000 in tax last year . This country is a joke .

@OptimisticHominid 3 ай бұрын

Well I’ve paid more, and I think this country is brilliant!

@jtome84-91 3 ай бұрын

@@OptimisticHominid yeah you think sharing your money 60/40 with the government while they waste it on bullshit makes this country brilliant you’re a clown

@timdumoulin2576 3 ай бұрын

@@OptimisticHominid you are full of shit

@arnoldvosloo220 3 ай бұрын

@@OptimisticHominid based on your comments on this video you probably haven't even paid that much in your whole life lol but enjoy larping

@OptimisticHominid 3 ай бұрын

@@arnoldvosloo220 Whatever!

@stdenisbros 3 ай бұрын

Shallow.

@timdumoulin2576 3 ай бұрын

This country is not worth the cost.

@mikeb6459 3 ай бұрын

If this is the new direction of your videos you’ve lost me.

@aroberge1 3 ай бұрын

Same.

@misspethamhouse9072 3 ай бұрын

But it’s good to understand this and use these tools when it comes to efficiently planning for taxes in retirement….

@OptimisticHominid 3 ай бұрын

@@misspethamhouse9072I think it’s the suspected motive behind the video.

3 ай бұрын

@@misspethamhouse9072 Anyone using information from the Fraser Institute has a political agenda (see a reply to a comment that was made by the author). There was an earlier video where the political agenda was even clearer. 😞