Economical Margin Analysis for Canadian Businesses

Rent on your home is not deductible on a Canadian return. Two situations change that. Self-employed people, and employees who meet the work-space-in-the-home conditions, may claim the share of rent tied to the area used for work. Several provinces also run a property tax or rent based credit, applied for on the provincial schedule filed with your T1, where rent paid affects the amount. Keep receipts and your landlord's details either way.

For 2025 returns filed in 2026, most online returns are processed in about two weeks, and a non-resident return can take up to sixteen weeks. A paper return runs on a considerably longer standard because it is handled manually. Those timeframes assume a complete return that is not pulled for review. Register direct deposit and track progress in CRA My Account rather than waiting on a posted cheque.

Most tax saving comes from a short list of levers: contributing to an RRSP or a spousal RRSP, holding investments inside a TFSA, FHSA or RESP so growth is sheltered, claiming every deduction and credit you actually qualify for, and splitting income where the rules allow, such as pension income splitting. Business owners add expense timing and salary versus dividend planning. Order matters, so decide before year end rather than at filing time.

The basic personal amount is a non-refundable credit that shelters a base level of income from federal tax, so income below it carries no federal tax. The amount is indexed every year, and the enhanced portion is phased out across the second-highest federal bracket, so taxpayers in the top bracket receive only the base amount. Each province and territory sets its own version. On Form TD1 you claim it so your employer withholds less; claim it with one employer only, or too little tax is withheld.

The usual route is online banking: add the CRA as a payee, choose the account type and the tax year, and pay as you would any bill. You can also use the CRA's My Payment service with a debit card, set up pre-authorised debit inside My Account, pay at your financial institution, or pay by credit card through a third-party provider that charges its own fee. Keep the confirmation, since payments do not always post to your CRA account immediately.

Divide the tax-included total by one plus the tax rate. In Ontario, divide by 1.13 to get the pre-tax amount; the difference is the 13% HST. Use 1.05 for GST-only provinces, 1.14 in Nova Scotia since 1 April 2025, and 1.15 in New Brunswick, Newfoundland and Labrador and Prince Edward Island. Quebec is different: QST of 9.975% applies to the pre-GST price, so divide by 1.14975 for the combined amount.

Possibly, but not through the CRA. Property tax is municipal and is based on the assessed value set by your province's assessment authority. Adding solar can raise assessed value if it is treated as an improvement, and some provinces exempt or partly exempt residential rooftop systems. Ask your assessment authority and municipality before installing. Income tax is separate: panels on a rental or business property may qualify for capital cost allowance.

CPP2 is a second contribution on higher earnings. For 2026 it is 4% from the employee and 4% from the employer on the slice of pensionable earnings between $74,600 and $85,000, so a maximum of $416 each. There is no basic exemption on that slice, and nothing is owed above $85,000. Payroll software applies it automatically once regular CPP contributions reach their ceiling.

It can. Property tax follows assessed value, and a shed, deck, finished basement or addition that adds usable space or quality usually raises the assessment at the next valuation. Provincial assessment authorities pick up permitted work through building permit data, then your municipality applies its own rate to the new value. Property tax is municipal, not a CRA matter, so ask your municipality and read your assessment notice before you build.

Yes. Massage therapy is not on the list of health services exempt from GST or HST, so a massage therapist above the small-supplier threshold charges 13% HST in Ontario. Other therapies were added to the exempt list, including psychotherapy and counselling therapy, so treatment from those practitioners is not taxed. A therapist whose taxable revenue stays under the $30,000 threshold for 2026 need not register. Insurance reimbursement does not change the tax treatment.

Canadian sellers advertise pre-tax prices and add GST, HST or provincial sales tax at the till. Nothing requires tax-included pricing, rates differ by province, and taxability depends on what is sold: one trip to the till can mix fully taxable goods, zero-rated goods such as basic groceries, and exempt supplies. Fuel is the exception — the price posted at the pump already contains the fuel taxes and the GST or HST, so nothing is added when you pay.

A T4A reports amounts that are not employment income, such as pension or annuity payments, certain benefits and fees paid for services to someone who is not your employee. Payroll slips for a calendar year are due to the recipient and to CRA by the end of February following that year. Employment income belongs on a T4 instead, where controlled tips paid through the business are included; tips a customer hands directly to staff are not, but the employee still reports them.