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Canadian Tax System

KCWA Family and Social Services is a non-profit organization established in 1985 by a group of women who were concerned with women and family issues and serves women, men, senior and youth all of them.

Canadian citizens as well as immigrants are required to pay taxes in order to maintain the social benefit received by all who are in Canada.

In Canada there are various levels of taxes, which include Federal Taxes, State Taxes, income taxes and tax by the municipal government.

These taxes are used to make sure that the various social welfare resources and the programs that offered for the people of Canada are able to operate properly. Instances of these programs are social welfare for people who have low or no income, employment insurance for someone who might have lost their job, pension for those seniors who are over 65 years of age and OHIP programs as well as many other services are provided through the government with the help of these taxes.

HST (Harmonized Sales Tax)

The Harmonized Sales Tax (HST) is a consumption tax in Canada. It is used in provinces where both the federal Goods and Services Tax (GST) and the regional Provincial Sales Tax (PST) have been combined into a single value added sales tax. (Total 13%)

Property Tax

For those who own as house, depending on where he or she lives they will have to pay property taxes. When buying property in a city, the city will give the owner notice of what taxes they need to pay. When you rent a house the tax is included in the rent and you do not need to pay the taxes separately.

Business Tax

A separate tax must be paid to the municipal government if you own a small or a large business.

Income Tax

Not only is working income considered income but also income made from saving account interest is also considered income. In general companies deduct taxes from the amount paid to the employee. Anyone who lives in Canada must report his or her income one time a year.

Even if the person does not have income he/she must file their taxes in order to receive the tax benefits such as the Canada Child Tax Benefit (CCTB) and the HST/GST tax benefit. After reporting your taxes if the CRA has decided you have paid too much taxes they will return some of the tax money. When someone has not paid the correct amount of taxes they may have to pay more.

In order to report your taxes an individual can fill out and turn in the General Income and Tax Benefit Package or go to the nearest Accountants Office and have them do your taxes.

Free Tax Clinics

CA Tax Clinics

Chartered Accountant of Ontario

The Accountants Association of Ontario offers low-income people a free service at tax time.

Free Community Programs which offer tax services

Community Volunteer Income Tax Program

This is a free service, helps taxpayers who do not know how to prepare their income tax and benefit returns, and who have low to modest income and a simple tax situation. The CVITP is a collaboration between the Canada Revenue Agency (CRA) and community organizations who host tax preparation clinics and arrange for volunteers to prepare the returns.

Income Eligibility

  • single family: less than $30,000

  • couple: less than $40,000

  • 1 adult and 1 dependant: less than $35,000

  • add $2,500 per each additional dependant

You are not eligible if you:

  • have business income or business expense

  • have more than $1,000 interest income

  • have rental income

  • foreign income or foreign property

  • filed for a bankruptcy

  • are filing for a deceased person

  • have capital gain or loss

Find a tax preparation clinic http://www.cra-arc.gc.ca/tx/ndvdls/vlntr/clncs/on-eng.html