Expert Tax Accountants in Thunder Bay

Your employer withholds federal and Ontario income tax using the pay period, your annual rate of pay and the claim codes from the TD1 forms you signed, then adds CPP contributions and EI premiums until the yearly maximums are reached. Because the tax portion follows brackets, the percentage held back rises as pay rises. For an exact figure, run your gross pay through the CRA's Payroll Deductions Online Calculator, which applies the current year's tables.

Non-taxable income is money you receive that never enters taxable income. Common examples are lottery and most gambling winnings, gifts and inheritances, growth and withdrawals inside a TFSA, the GST/HST credit and Canada child benefit, most life insurance death benefits, and child support under current-rule agreements. A few amounts are reported and then deducted, such as workers' compensation and social assistance, because they still affect benefit calculations, so report anything that arrives on a slip even when no tax results.

Two different categories carry no tax. Zero-rated supplies are taxed at nil, including basic groceries, prescription drugs, medical devices and most agricultural products, and the seller can still claim input tax credits. Exempt supplies, such as most residential rent, health and dental care and financial services, carry no tax and no input tax credits. Small suppliers below the $30,000 threshold, unchanged for 2025 and 2026, also charge nothing until they register. The CRA lists both categories.

Rent from an Ontario property is taxed the same way as anywhere else in Canada: you report gross rent, deduct allowable expenses, and pay tax on the net amount at your combined federal and Ontario rates. Residential rent charged to a tenant carries no HST, though commercial rent generally does at 13%. Ontario landlords also cannot deduct the cost of the building itself, only capital cost allowance, which can affect a later sale.

Withhold three things from each pay: income tax, CPP and EI. For 2026, CPP is 5.95% from the employee and 5.95% from the employer on pensionable earnings between the $3,500 basic exemption and the $74,600 ceiling, plus CPP2 at 4% up to $85,000. EI is $1.63 per $100 of insurable earnings for the employee, and the employer pays 1.4 times that. Use the CRA payroll deductions online calculator, then remit by your assigned due date.

If you are incorporated, you can take salary, dividends, or a mix of both. Salary is deductible to the corporation, builds RRSP room and CPP entitlement, and requires payroll registration and regular remittances. Dividends need no payroll but come out of after-tax corporate income and create no RRSP room. Sole proprietors and partners simply draw money and pay tax on the business profit. The right mix depends on your cash needs and the corporation's tax position, so model both.

Not automatically. Property tax is set by your municipality on assessed value and does not fall because of your age. Relief programs do exist: British Columbia lets qualifying owners defer tax until the home is sold, Ontario municipalities may grant deferrals or cancellations for low-income seniors, and several provinces run rebates or grants. You apply, usually every year, and nothing happens on its own. Income-tested credits on your T1 return may also change once pension income starts.

Total your income, subtract deductions such as RRSP contributions and child care, apply your credits, then compare the resulting tax with the tax already withheld on your slips and any instalments paid. Tax software runs that comparison as you enter slips and shows a running balance before you submit. After filing, the notice of assessment confirms the figure, and CRA My Account shows the refund or amount owing and where it stands.

Most insurance is an exempt financial service, so no GST or HST is charged on the premium. That covers auto, home and life policies. Because the premium is exempt, a business cannot claim an input tax credit on it, although it may still deduct the premium as a business expense where the coverage relates to earning income. Some provinces tax certain premiums under their own system, outside GST/HST. Check each line on the insurer's statement.

Tourism tax and hospitality tax are loose labels for the levies added to accommodation and travel spending in Canada: a municipal accommodation tax, a destination marketing fee set by a hotel association, or a provincial accommodation levy. None is a federal tax, so the rate and the name depend on where you stay. GST/HST applies to the accommodation as well. Charges labelled a marketing fee may be voluntary rather than a tax, so ask the property.

The CRA does use text and email for limited purposes: one-time passcodes when you sign in, and notifications telling you that mail is waiting in your account. It does not text you a refund offer, a payment demand or a link asking for banking details, a SIN or a card number. Never tap a link in an unexpected message; open canada.ca yourself and sign in to My Account to see whether anything is actually outstanding.

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.