Report total income
Deduct expenses and claim credits
Calculate taxable income
Apply federal and provincial/territorial tax rates
Reduce taxes owed
Note that these figures are rough estimates.
Not inclusive of personalized tax credits and deductions.
Applicable to the tax year 2022.
Combines federal and Ontario provincial tax rates.
The deadline for filing personal taxes in Canada is usually April 30th of the following year. If this date falls on a weekend or holiday, the deadline is extended to the next business day. Self-employed individuals and their spouses can file by June 15th of the following year. In any case, any tax owing must be paid by April 30.
You will need tax slips (such as T4 – employment income, T5 – investment income, T3 – investment income and income from trust, T5008 – capital gains and losses). Personal information and social insurance numbers are also required. You should also know the amount of total income and deductions you realized outside of the tax slips (i.e. freelancing income, business expenses, investment income and carrying charges, and others).
You can file your personal taxes online using tax software, paper filing, or through a tax professional. The CRA’s website offers information and e-filing options.
Yes, online filing is safe and secure when using CRA-approved tax software. They have encryption and security measures in place to protect your data.
Filing late can result in penalties and interest charges on any taxes owed. If you do not owe taxes, then you generally won’t face late-filing penalties for late-payment interest. However, not filing a return on time can affect your eligibility for certain tax credits and benefits.
Generally, you can deduct reasonable expenses incurred to earn income (for example, rental expenses can be used to offset rental revenue) when figuring out total income. Then there are deductions to offset total income to arrive at taxable income, including RRSP deductions, moving expenses, investment carrying charges and more.
Tax credits are tax offsets against total tax payable. They include the basic personal tax credit, spouse amount tax credit, medical expenses tax credit, charitable donations tax credit, and more. Eligibility varies, so it’s essential to review the CRA’s guidelines or speak with a tax professional.
The CRA is the government agency responsible for administering tax laws in Canada. They process tax returns and issue notices of assessment for taxes owed or refunds due to taxpayers.
Yes, there are tax benefits for eligible individuals tha files their tax returns. The Canada Child Benefit (CCB) provides financial assistance to eligible families with children, and the GST/HST credit is a tax-free payment to help offset the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) you pay. The CRA will assess your eligibility (generally based on income) after processing the tax returns you filed.
Yes, if you’re self-employed, you can claim deductions for reasonable expenses incurred to earn revenues. These may include office expenses, advertising costs, and vehicle expenses related to your business. You’ll need to keep accounting records and source documents (invoices) to support these claims.
In Canada, there are federal tax credits available for eligible tuition fees paid, student loan interest, and education expenses. The most well-known credit is the tuition and education tax credit, which can be claimed by students attending post-secondary education institutions or their supporting family members. Each province also has their own tuition tax credit rules for their students.
$650
$950
