Canadian Taxation System

Canada’s taxation system funds government services through various taxes, primarily income taxes collected from individuals and businesses. Personal income tax rates are progressive, meaning higher earners pay a larger percentage. The federal government and provincial/territorial governments set their own tax rates and brackets. Besides income tax, Canadians pay Goods and Services Tax (GST), a federal sales tax, and often a provincial sales tax or Harmonized Sales Tax (HST) that combines federal and provincial taxes. Other taxes include property taxes, corporate taxes, and excise taxes on specific goods. These revenues support public healthcare, education, infrastructure, and social programs.