Non-refundable tax credits can reduce your tax owing to zero, but if you have more tax credits than tax owing, you do not receive a refund for any surplus amount. To claim a non-refundable tax credit, you must actually owe taxes - in other words, you must have earned enough income to owe income tax. There are two types: Non-refundable and refundable Non-refundableĪ non-refundable tax credit reduces the amount of tax payable. Tax creditsīoth federal and provincial tax credits exist, and you’ll be glad to hear they help you pay less tax. Tax credits and tax deductions can reduce either your income or the amount of tax you owe. Remember: Your marginal tax rate is the total of both federal and provincial taxes on income. So, if you are planning to skip town to a province with lower taxes, do it before December 31 of the calendar year. Provincial Tax Brackets Rates 2021 (in addition to federal tax)Īs we said, the province you are living in on December 31 will determine the provincial portion of your income tax.
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