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Hi David
We are a canadian couple presently living overseas,wanting to return to live in Vancouver and would like some information regarding personal income tax.
I am a nurse and my husband is a self- employed carpenter.What is the rate of income tax at the moment?
regards, sxxxxxxx
_________________________________________________________________david david ingram replies.
Income rates vary and should include items like Employment Insurance, Canada Pension Plan and the actual BC and Federal taxes.
I am pretending you are self employed and paying both halves of the CPP but at the same time you do not have to pay Unemployment Insurance premiums (or as "they" call it now, EI for Employment Insurance).
At $20,000, of Self Employment, the Federal, BC and CPP payable is: $3903.40
At $21,000, of Self Employment, the Federal, BC and CPP payable is: $4197.17
The difference is $293.77. In other words, you are paying 29.377% tax and CPP on that extra $1,000 of earnings at $20,000
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At $50,000, of Self Employment, the Federal, BC and CPP payable is: $13,449.88
At $51,000, of Self Employment, the Federal, BC and CPP payable is: $13,761.38
The difference is $311.50. In other words, you are paying 31.15% tax and CPP on that extra $1,000 of earnings at $50,000
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At $70,000, of Self Employment, the Federal, BC and CPP payable is: $20,033.89
At $71,000, of Self Employment, the Federal, BC and CPP payable is: $20,410.89
The difference is $377.00. In other words, you are paying 37.70% tax and CPP on that extra $1,000 of earnings at $70,000
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At $90,000, of Self Employment, the Federal, BC and CPP payable is: $27,926.43
At $91,000, of Self Employment, the Federal, BC and CPP payable is: $28,333.43
The difference is $407.00. In other words, you are paying 40.70% tax and CPP on that extra $1,000 of earnings at $90,000
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At $110,000, of Self Employment, the Federal, BC and CPP payable is: $36,226.27
At $111,000, of Self Employment, the Federal, BC and CPP payable is: $36,663.27
The difference is $437.00. In other words, you are paying 43.70% tax and CPP on that extra $1,000 of earnings at $110,000
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At $130,000, of Self Employment, the Federal, BC and CPP payable is: $44,966.27
At $131,000, of Self Employment, the Federal, BC and CPP payable is: $45,403.27
The difference is $437.00. In other words, you are paying the same 43.70% tax and CPP on that extra $1,000 of earnings at $130,000
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The highest rate of tax in BC at the moment is 43.7%
It is a progressive rate of tax with 5 different levels which are different than the ones that I used but the ones I used make more sense and are easier to use than the actual changes because nobody thinks in the oddball splits used by both the Federal and Provincial governments.
An Interesting exercise at 6 AM on a chilly Vancouver November morning.
David Ingram's US/Canada Services
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Res (604) 980-3578 Cell (604) 657-8451
(604) 980-0321
New email to [email protected]
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
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David Ingram of the CEN-TA REALTY Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
(604) 980-0321 - Fax 913-9123 [email protected]
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