Reducing Taxes
“A penny saved is worth two pennies earned . . . after taxes.”
– Randy Thurman
Tax Brackets and Tax Rates 2020
Federal Income Tax Rates
and Brackets
(according to Canada Revenue Agency (CRA))
15.00% Up to $48,535
20.50% 48,536 – 97,069
26.00% 97,070 – 150,473
29.00% 150,474 – 214,368
33.00% 214,369 and over
Ontario Income Tax Rates
and Brackets
(according to Canada Revenue Agency (CRA))
5.05% Up to $44,740
9.15% 44,741 – 89,482
11.16% 89,483 – 150,000
12.16% 150,001 – 220,000
13.16% 220,001 and over
Combined Federal & Ontario Tax Brackets
and Tax Rates
20.05% Up to $44,740
24.15% 44,741 – 48,535
29.65% 48,536 – 78,782
31.48% 78,783 – 89,482
33.89% 89,483 – 92,824
37.91% 92,825 – 97,069
43.41% 97,070 – 149,999
44.97% 150,000 – 150,473
47.97% 150,474 – 214,368
51.97% 214,369 – 219,999
53.53% $220,000 and over
Otario Surtax
The Combined Federal & Ontario Tax Rates includes an Ontario Surtax. The Ontario Surtax is a second layer of taxes (on top of the Basic Provincial Income Tax) that is payable by residents of Ontario.
All Canadians are affected by taxes. Whether through income tax, through everyday purchases or simply by owning a home. Paying taxes are inevitable. However, there are many strategies available to Canadians that can help them reduce the taxes they pay.
Taxes are collected in many forms;
- Income Tax such as personal and corporate taxes
- Consumption taxes such as sales taxes
- Wealth taxes such as property and estate taxes
Tax planning involves using strategies that accomplish two main goals;
- Paying as little tax as legally possible
- Deferring as much tax as possible.
Vehicles used for tax planning strategies;
- TFSAs (Tax Free Saving Account)
- RRSPs (Registered Retirement Saving Account)
- RDSPs (Registered Disability Savings Plan)
- RESPs (Registered Education Savings Plan)
- Charitable Donations
Tax Planning
At filling time, you have lost most of the control over the outcome. Tax planning is an ongoing process. It encompasses many choices as well as strategies. The amount of income you earn, the investment decisions you make, the available credits and deductions available to you are just some of the factures that contribute to a very complex tax system in Canada. With the multitude of rules and the changes that come about every year to our tax system, it is very easy to confuse, overlook or miss a strategy altogether. It is advisable to seek professional help to make sure you are taking advantage of all possible tax strategies.
Tax planning is all about keeping more of your money.
Products or services related to investments, investment recommendations, and investment reviews are provided through our mutual fund dealer Security Financial Services and Investment Corp. 4665 Yonge Street, Suite 309, Toronto, ON M2N 0B4 t 416.964.0440
Insurance sales are not conducted through Security Financial nor are they the business of Security Financial.
Insurance sales are conducted through Qualified Financial Services (QFS), a Managing General Agency.
As Certified Financial Planners, we may provide expert advice to clients that do not have or intend to have investments held through Security Financial Services or Qualified Financial Services. We may charge an hourly rate to clients who come to us solely for financial advice and planning services.
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All written content on this site is for information purposes only. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.