Thread: Determining your Marginal Tax rate and the avg tax %?
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Dec 20th, 2006 06:07 PM
#1
Determining your Marginal Tax rate and the avg tax %?
I'm curious on how my taxes work... so I went reading the gov's website on marginal tax rates:
What are the income tax rates in Canada for 2006?
And I read that the basic personal amount is $8,648
Then I tried to do some Scenarios to see if I can calculate the tax rate using the Marginal Tax Rate Calculator as a benchmark.
Let's say I make $9k a year and I want to know how much taxes I owe to the feds... So deduct the personal basic amount and multiply by 15.25%. I calculate: $53.68, but the calc computed $25. What am I missing?
Also, in the calculator if you choose any province (but Quebec) you get $25, if you choose Quebec you pay $21. The federal tax changes, why?
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Dec 20th, 2006 06:38 PM
#2
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Dec 21st, 2006 12:53 AM
#3

Originally Posted by
zeroburn
Thanks... I am looking through it.
Edit...
Used the wrong base amount.
This year it is $8839.
Why didn't CRA update it on their website?
One must be very careful.
Anyways thanks. It works now. 
(In the calculator, if I change the year to 2005, I get my original answer.)
BTW, great site.
Last edited by majesus; Dec 21st, 2006 at 10:37 AM.
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