• Canada, both at the federal and provincial level, maintains a progressive tax code that taxes high-income citizens with incomes at a higher rate than middle- or low-income citizens. The Canadian tax code has some peculiarities that should be noted in detail. The competent authority for Canadian taxes is the Canadian Revenue Agency, the equivalent of the IRS in the United States.
  
  

Varying Tax Rates

• For individual filers as of 2010, the highest single rate is for those making more than $127,021 a year: 29 percent of all income over that amount. Making over $127,021 a year also obliges the taxpayer to pay different rates on the first $40,000 of income and multiples thereof. At the provincial level, the highest rate can be found in Nova Scotia, with a top tax rate of 18.5 percent for those making over $93,000. The second highest is Manitoba, with a rate of 17.4 percent for those making more than $67,000.
  
  

The Goods and Services Tax

• This is similar to the sales tax in the United States. There is a federal flat rate of 5 percent on nearly all goods and services bought in the country. The different provinces also maintain their own rates. There is such a thing as the Harmonized Sales Tax, which is a means for citizens of Canada to pay a lower rate in total for goods and services than having to pay both federal and provincial taxes separately. ref 3
  
  

Sales Tax Breaks for Lower Incomes

• Lower-income families can qualify for reimbursements on the different sales tax dependent on their location, income and the number of children in the household. At the same time, reimbursements are also available for employees who buy necessary items for school or work. If the employer is registered with the tax authority and the items are claimed on the employees tax form, sales taxes on items bought for school or work can be reimbursed by the government.
  
  

The Child Tax Benefit

• The Child Tax Benefit is a payment program for lower-income citizens with young children. This monthly payment for families is also tax free. The amount is decided by one's location, monthly income and the number of children in the home. This is, in effect, a targeted tax refund for those with children. Many similar refund programs exist in Canada for persons with disabilities, homeowners and other classes of people.
  
  

Installment Payments

• Taxes are normally paid in installments by those who do not normally get taxes withheld from their paychecks. This is common among self-employed people and those who get paid fees rather than regular wages or salaries. You must owe more than $3,000 of taxes each year to quality for the tax installment program. Due dates for installments are the 15th of March, June, September and December.