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6 min read

Understanding Canadian Taxes

Marginal rates, deductions and credits in plain language.

Marginal rates

Canada uses graduated rates, so a raise does not move all of your income into a higher bracket.

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.

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This lesson is general education only and is not individualized financial, investment, insurance, legal or tax advice.