Question 1

Should I incorporate my business in Canada?

Accepted Answer

Incorporation usually starts to make sense when business income exceeds $120,000–$150,000. Below that, the small business deduction savings are offset by accounting and legal costs. Our What-If tool shows what incorporating would save or cost at your own income.

Question 2

How much tax do I save by contributing to an RRSP?

Accepted Answer

Your RRSP tax savings equal your contribution multiplied by your marginal tax rate. At $80,000 income in Ontario, a $10,000 RRSP contribution saves approximately $3,115 in tax (about 31.2% of that contribution). It also increases the CCB if you have children.

Question 3

Which province has the lowest taxes in Canada?

Accepted Answer

At $100,000 of employment income, Nunavut leaves the most take-home pay of any province or territory, with a 4% starting rate and a $19,659 basic personal amount. Residents there keep approximately $3,948 more per year than Ontario residents.

What If?

What if your income changes?

What if you contribute to RRSP?

Your Net Income by Province

What If?

What if your income changes?

What if you contribute to RRSP?

Your Net Income by Province