Canada Revenue Agency Income Tax: CRA Income Tax payroll tax Tax Tax Rate US Tax
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How Much Tax Do You Pay on $50 Million Jackpot Winning?
After a $50 million Jackpot was won in Vancouver, people are curious as to how much tax do you pay for that Lotto winning?
The winners should thank their luck that they have won the Jackpot in Canada.
If they had won the Lotto in USA, they would have to pay 38% or more of their winning to IRS.
Since they have won it in Vancouver and are not U.S. citizens, their Tax liability to the Canada Revenue Agency is, “0”.
Lotto or any other lottery winning is not taxable in Canada.
As per Canadian Income Tax Act “Income from a source” of employment, business or investment is taxable income. Since lottery winning is not a regular source of income, not a single penny of the winning is Taxable under Canadian Income Tax Act.
Unfortunately it is a different situation for U.S. citizens or lottery winning in USA.
If you are a U.S. citizen, it does not matter where in the world you win a lottery; you must report and pay income tax on your lottery winning.
If you are not a U.S. citizen and you win lottery/gambling in U.S.A. 30% to 38% of your winning will be taken out and sent to IRS, before you are given the winning proceeds. You must file a Non-Resident Income Tax Return, to get the tax deducted at source back. How much you will get back, depends your foreign residential status and any tax treaty agreement between the USA and your country of residence.
Canada Revenue Agency Income Tax: Canada Income Tax IRS Tax Payer
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Pre Filled Income Tax Form for Canada
Income Tax
Canada Revenue Agency Income Tax: EI Income Tax payroll tax
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Payroll Tax Increase is cheered by Canadian Businesses
How do you get thumbs up from both business and labour leaders after announcing an increase in payroll tax?
Consult the stunt by Finance Minister Jim Flaherty.
For months it has been reported that the EI (Employment Insurance) premium for employer and employee will increase by 21 cents and 15 cents for every $100 starting January 1, 2011.
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Canada Revenue Agency Income Tax Property Tax Real Estate: Income Tax Property Tax Real Estate Tax Tax Rate
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Tax on Income from Real Estate Sale
Tax Bill on Real Estate
With the current market conditions of real estate in Vancouver and so many people buying property for their first home or investment property, it would be wise to take into consideration the tax implication, when you sell the property. Net Income from sale of property can be taxed as a business income or a capital gain, depending on the usage of the property and the primary intention of the owner.
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Do you know how much tax you will pay?
As a Canadian Tax Payer we all know, how much Tax refund we have received or how much we owed to CRA. Unfortunately most of us do not know our total tax bill.
Typically, in a T4 slip there are three major Tax Deduction. These are Income Tax, CPP (Canada Pension Plan Tax), EI (Employment Insurance Tax).
Tax rate for CPP is 4.95% and EI is 1.73% of your total income. CPP is maxed out at $47,200 for 2010 and maximum CPP tax is $2,163.15. EI is maxed out at $43,200 and maximum EI us $747.36.
Income Tax on the other hand never max out. Income Tax and tax rate increase progressively with increase of your income. Combining these three major taxes on your T4 slip, at a minimum everyone in Canada pays 22% of their income in taxes.
Watch the video below and you will be surprised how much tax you pay to CRA.