Canada Revenue Agency
(800) 267-6999
www.cra-arc.gc.ca
Canada has a wide variety of social programs, and the money for them has to come from somewhere. Canadian taxes are generally slightly higher in total than those in the US, though it’s broken down a little differently, because the Provinces are generally in charge of the specific social programs instead of the federal government. As a Canadian resident, you are required to pay taxes here. The Canada Revenue Agency’s website has many helpful tools to help you figure out what your tax liability is.
For the 2006 tax year, federal taxes are in five brackets that go up to 29% if you make more than C$118,285. Alberta has a simple 10% flat tax on personal income. That makes it one of, if not the, cheapest provinces for taxes, plus it’s easier to calculate your liability. Generally, you must file your taxes by April 30thfor the previous year.
Alberta is the only province that doesn’t charge a sales tax, but there is still the Goods and Services Tax charged by the Federal Government. Property Taxes vary each year, but payment is due June 30. If you buy a property only part way through the year, you’re still responsible for the full year’s taxes, so include that consideration in your negotiations when you’re buying.
US citizens’ income tax liabilities are based on worldwide income, so you’re still responsible to pay the IRS on income earned in Canada or other countries. You do get an $80,000 dollar exemption on money you earn overseas, so the tax burden will be significantly lower. You can also get foreign tax credit because of how much you’re paying in Canada. The best move is to let a tax professional help you out with the paperwork.
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