Canada uses graduated rates, so a raise does not move all of your income into a higher bracket.
6 min read
Understanding Canadian Taxes
Marginal rates, deductions and credits in plain language.
Marginal rates
Deductions vs credits
A deduction reduces taxable income; a credit reduces tax payable. They are not interchangeable.
Planning angle
Registered accounts, timing and household structure all interact with tax. A qualified professional reviews your specifics.
This lesson is general education only and is not individualized financial, investment, insurance, legal or tax advice.
