Residents of Canada must pay federal, provincial and municipal taxes. These help to cover the cost of various government services that we use. Here are a few of the kinds of taxes you can expect to pay living in Newfoundland and Labrador.
All Canadian residents who are old enough to work must file an income tax return each year, whether they earned any money or not. That is the law. If you are working for an employer, a percentage of your pay cheque will be deducted and sent to the federal government to cover the income tax that you owe. If too much is deducted, you will get a refund at the end of the year. If you paid too little, you will have to pay more. This money helps pay the cost of government services.
For more information regarding income tax please visit Canada Revenue Agency
You can also check out the Canadian Income Tax Calculator
Harmonized Goods and Services Tax (HST)
This is a tax that Canadian residents pay when they purchase goods and services. It is added on to the price of the item when you pay. Please keep this in mind when you look at the price tag of an item in a store that the HST will be added to that amount. The HST rate is 15%.
If you own property, you normally have to pay taxes annually to the municipal government of your community. This is to help pay for services such as clean water, sewage, snow clearing and other services.
Benefits and Deductions
Although you have to pay taxes you may also be eligible for certain benefits and deductions from Revenue Canada
Canada Child Tax Benefit (CCTB)
The CCTB is a non taxable amount paid monthly to help eligible families with the cost of raising children under 18 years of age. To see if you are eligible for this benefit, click here
Child Care Expenses Deduction
In addition you may be eligible to claim for child care expenses on your income tax return. For more information, click here.