Income tax on GIC's

[jackieskwong]

If i buy a GIC, how does it get taxed? Is PC high interest savings account taxed as well? because outlook financial is offering a rather tempting GIC rate, but if it gets taxed i'd rather just leave everything in PC account if it doesn't get taxed.

also how much does it get taxed? For example if i leave $1000 in a GIC

[bobaroo]

you wil be taxed at your marginal rate regardless of where you are earning your interest income.

[Joseph88]

If i buy a GIC, how does it get taxed? Is PC high interest savings account taxed as well? because outlook financial is offering a rather tempting GIC rate, but if it gets taxed i'd rather just leave everything in PC account if it doesn't get taxed.

also how much does it get taxed? For example if i leave $1000 in a GIC

All INTEREST income in a NON-REGISTERED (outside RRSP) is 100% taxable. In other words, if your marginal tax rate is 40% and you make $100 in interest for the year, you have to pay $40 in taxes. If you are already in a high tax bracket, then it would be best to put your interest bearing investments in an RRSP.

[jackieskwong]

ahahaha nope, not even near high tax bracket. unemployed student here=)

[Crowbarfoot]

Most banks will only issue a tax receipt when the interest over the year is over $50.00. You still have to claim it tho....