Taxes in Canada
Tax haven for some
It is a good place to be in a country without wealth tax, motor vehicle tax, gift tax and inheritance tax.
And yet there are some forms of taxation that many newcomers encounter.
A frequently heard complaint is the amount of the property tax (OZB); the "Property Tax". This is ridiculously high in Canada because this is the main source of income for municipalities. Some pay $10,000 a year, a few even more. This tax can also change considerably from year to year.
The differences in taxes are sometimes so enormous, even among neighboring municipalities, that it can influence the choice of housing.
Anyone who makes changes to their home (adding a garage, for example) will immediately be assessed for this tax.
Income tax has a provincial part and a federal part
It can make thousands of dollars a year in which province you live in terms of income tax.
Canada has no mortgage interest deduction, but also no rental value lump sum. The tax system seems to be simpler, but it is complicated by the provincial attributes that are used here and there as real hobbyhorses.
There are hardly any general deductions and if they do exist, it is rarely worthwhile to claim them. If you do so, you can count on an inspection by the inspector.
Many immigrants will sooner or later experience capital gains, which are often taxable in Canada. The rules can sometimes be annoying.
Upon death, for example, all assets are valued as if they had been sold at a profit and are also taxed accordingly.
There are also common "change of use" rules. For example, if you rent out a holiday home and then live in it yourself, you will run into that rule. The item will then be taxed as if you had sold it.
The capital gains tax has already driven many to despair.
The Annoying "Sales Tax"
A constant point of irritation is the "Sales Tax" that is always calculated afterwards. The indicated prices are usually without tax. The "Sales Tax" rules are different in every Canadian province, including for entrepreneurs.
It is striking that the "Sales Tax" is highest in the poorest provinces and lowest in the richest provinces.
This also applies to many other taxes that are highest where people have the least. Many people are annoyed by this, but politicians are unable to do anything about it. In fact, this has always been the case.
Maybe also take a look at the chapter on "greed" (link).