What taxes do corporations pay in Canada?

A tax deduction is an amount subtracted from your income before tax is worked out, so it reduces the income being taxed rather than the tax bill directly. Its worth depends on your marginal rate: the higher the rate, the more the deduction saves. Common examples are RRSP contributions, child care costs, union dues, moving expenses and business expenses. Credits work the other way, reducing the tax calculated on that income.

Property tax bills come from your municipality, not the CRA, so ask the city or town that issued it. Most municipalities let you view, print and download bills and statements through an online property tax account opened with your roll number and address, and will reissue a copy by mail or email on request. If property tax is collected with your mortgage payment, your lender's annual statement shows the amount paid on your behalf.

Your marginal tax rate is the rate on your next dollar of income, not on your income as a whole. Federally for 2026 that is 14%, 20.5%, 26%, 29% or 33% depending on the bracket you have reached, and your province's rate stacks on top, so an Ontario earner in the 26% federal band adds the Ontario rate for their own band. The two sets of thresholds rarely line up, so add the two rates together.

Usually yes. Severance, retiring allowances, bonuses, back pay, commuted pensions and RRSP withdrawals are taxable in the year received, and the payer withholds at a flat lump-sum rate that may be higher or lower than your real marginal rate, so a refund or balance can appear at filing. A qualifying retroactive lump sum covering earlier years can be spread back over them on request. Amounts transferred directly to an RRSP defer the tax.

No. Borrowed money is not income because you have to repay it, so a personal or business loan is not reported as income on your return. Interest you pay may be deductible if the money earns business or investment income. Two situations do bite: a debt that is forgiven can create income or reduce a cost base, and an interest-free or low-interest loan from your own corporation can produce a taxable benefit. Get advice before lending to yourself.

Land transfer tax is a closing cost, paid to the province, and to the city as well in Toronto, when the deed changes hands. It is not deductible against income, even on a rental. Instead it is added to the property's adjusted cost base, which lowers the capital gain when you sell. Keep the statement of adjustments from your lawyer, because that cost base matters years later. First-time buyer rebates reduce the amount you actually pay.

The refund or balance owing sits in the summary section at the end of the T1, after total credits are set against total tax payable. That is your own calculation, though, not the final word. The amount the CRA actually pays appears on your notice of assessment and in CRA My Account, and it can differ if slips, credits or an older balance changed the result. The notice sets out any change it made.

A property settlement on marriage breakdown is neither deductible to the payer nor taxable to the recipient, because it divides assets already owned rather than transferring income. A lump sum paid to clear arrears of support generally follows the same treatment. Periodic spousal support is different: paid under a written agreement or court order, it is deductible to the payer and taxable to the recipient, while child support under a more recent order is neither.