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Canada Tax System Guide 2026

Federal + Provincial income tax, GST/HST, TFSA, RRSP, and CRA filing requirements.

📊 Federal Tax Brackets 2025

Income Range (CAD) Federal Rate
Up to $55,867 15%
$55,867 — $111,733 20.5%
$111,733 — $154,906 26%
$154,906 — $220,000 29%
Over $220,000 33%

Basic Personal Amount: $15,705 (tax-free). Provincial tax is ADDED on top (varies by province).

🏛️ Sales Tax (GST/HST/PST)

💰 GST/HST by Province

Alberta: 5% GST only (lowest!)
Ontario: 13% HST
BC: 12% (5% GST + 7% PST)
Quebec: 14.975% (5% GST + 9.975% QST)
Nova Scotia: 15% HST (highest)
• No tax on basic groceries, prescription drugs

📋 Tax Filing

Deadline: April 30 each year
CRA: Canada Revenue Agency (like IRS)
SIN: Social Insurance Number (needed to work/file)
Software: Wealthsimple Tax (free), TurboTax, H&R Block
T4 slip: Employment income (like W-2)
Most get a refund!

💰 TFSA & RRSP

TFSA: Tax-Free Savings Account. $7,000/year limit. Gains are 100% tax-free. Best for young people.
RRSP: Retirement savings. Contributions are tax-deductible. Tax paid on withdrawal. Max 18% of income.
FHSA: First Home Savings Account. $8,000/year (new!)