Tax Slabs in Ontario

[rishabshanker]

Hi All,

I am planning to land in April 2011. As most new immigrants I am sure I will have to take up some entry level job in the beginning which pays around 10-15 CAD per hour. What I am trying to find out is, at this rate of wages, I should be making between 1600-2000 CAD per month, Assuming this as my gross income and Toronto as my place of residence, what would be my tax liabilities? are people earning min wages also liable to pay tax? or like in India is there some standard deduction sort of thing which provides a benefit to people who are in the lowest salary bracket? Your help and inputs are much appreciated in this regard.

Cheers,
All the Best & God Bless
Rishab

[steaky]

I guess you can use the tax calculator found in this older post for some idea:

http://www.canadavisa.com/canada-immigration-discussion-board/ernst-youngs-online-income-tax-calculator-t64753.0.html

[rishabshanker]

Thank Steaky....but the calculator is asking for taxable income as an input and thats what I am trying to determine by creating this topic. How is taxable income determined? for eg in India Taxable income = Gross Salary-standard deduction-tax saving investments...similarly is there a formula for Canadian tax calculation?

Cheers,
All the Best & God Bless
Rishab

[toby]

Thank Steaky....but the calculator is asking for taxable income as an input and thats what I am trying to determine by creating this topic. How is taxable income determined? for eg in India Taxable income = Gross Salary-standard deduction-tax saving investments...similarly is there a formula for Canadian tax calculation?

Cheers,
All the Best & God Bless
Rishab

Your "taxable income" is that income subject to tax.  All salary income is subject to tax.

At $15 per hour, 40 hours per week, 52 weeks per year, you would  earn $31,200 gross, and pay tax of about $4200.  Of course, some of your income woudl be diverted to contribute to the Canada pension PLan (CPP) so that woudl reduce tyour tax payable -- but also reduce your take-home pay.

If you earned $10 per hour, tax for the year would be about $1800 (same comment about CPP).   

[smilekumar]

http://www.ey.com/CA/en/Services/Tax/Tax-Calculators-2011-Personal-Tax


Hope this  link Helps you.