Economical Non-Profit Accounting Services for Canadian Non-Profits and Charities

Multiply the pre-tax price by the rate for the province of supply. On a $100 purchase in 2026 that is $13.00 in Ontario (13%), $14.00 in Nova Scotia (14%), and $15.00 in New Brunswick, Newfoundland and Labrador or Prince Edward Island (15%). In the non-participating provinces and the three territories only the 5% GST applies, so $5.00, plus any provincial sales tax billed separately.

A TD1 Personal Tax Credits Return tells your employer which personal credits to build into your income tax withholding, so the right amount comes off each pay. You normally complete a federal TD1 and a provincial or territorial TD1 when you start a job. File a fresh pair whenever your situation changes, for instance a new dependant, tuition, or a second employer, where you should not claim the basic personal amount twice.

Canada uses a basic personal amount rather than an exemption. For 2026 it is $16,452, tapering to $14,829 as net income runs from $181,440 to $258,482. It works as a non-refundable credit, so income up to that level attracts no federal tax, and each province sets its own equivalent amount. Separately, CPP contributions for 2026 ignore the first $3,500 of pensionable earnings; that basic exemption belongs to payroll, not to income tax.

Divide the total by one plus the rate. At Ontario's 13% in 2026, a $113 tax-included total is $113 divided by 1.13, or $100 before tax and $13 of HST. Use 1.14 in Nova Scotia, 1.15 in New Brunswick, Newfoundland and Labrador and Prince Edward Island, and 1.05 where only the 5% GST applies. Multiplying the total by 13 over 113 gives the Ontario tax directly.

Exemptions come from specific rules, never from status alone. Registered charities and qualifying non-profits are exempt from income tax on their activities because Parliament chose to support that work. Income earned on a reserve by a person registered under the Indian Act is exempt. Diplomats get relief under international agreements. Most people who pay nothing are not exempt at all: their credits, starting with the basic personal amount, simply cover their income, and they still have to file.

Line 43500 is your total payable. Add net federal tax from line 42000, your provincial or territorial tax, CPP contributions payable on self-employment and other earnings, any EI premiums on self-employment income, and any social benefits repayment. That total is what you owe before credits for tax already paid; subtracting your total credits gives the refund or balance owing at the end of the return.

The CRA does not usually move a due date, but you can ask for a payment arrangement that spreads the balance over time. Interest keeps running while you pay. Apply through My Account, My Business Account, or the CRA's debt management call centre. Where interest or penalties arose from circumstances beyond your control, ask for relief using form RC4288. British Columbia's property tax deferment program is a separate provincial scheme with its own application.

Usually yes, if you are not registered. Non-resident digital suppliers such as ad networks and software subscriptions must register under CRA's digital economy rules and charge GST/HST to Canadian customers who are not registered themselves. If you give the platform a valid GST/HST number, it generally stops charging the tax and you account for it yourself where the rules require. Tax charged on genuine business purchases is normally recoverable as an input tax credit once you are registered.

Charge HST only once you are registered. Show the subtotal, then the tax on its own line, then the total; in Ontario that line is 13% of the subtotal for 2026. The invoice must carry your GST/HST registration number, the date, and enough description for the customer to claim an input tax credit. Bill at the rate of the province where the customer receives the supply, not where you happen to be based.

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.

Non-profits pay GST/HST on most of what they buy, and many also have to charge it on what they sell. Being a non-profit is not a GST/HST exemption in itself. Registration turns on whether the organisation makes taxable supplies above the small-supplier threshold that applies to public service bodies, and several kinds of supply made by non-profits are exempt, which keeps them outside that test. Some non-profits also qualify for a public service body rebate of tax they cannot otherwise recover.

Not by default. Property tax is governed by provincial legislation and municipal bylaws rather than by the CRA, so any exemption depends on where the property sits and how it is used. Places of worship, certain charitable and educational uses and some seniors housing commonly qualify, and many municipalities offer partial rebates to registered charities that lease space. Exemption is rarely automatic: you usually have to apply, and reapply, with evidence of use and status.