Immigrants as well as Canadian citizens are required to pay taxes in Canada. In addition, those who have resided in Canada for more than 183 days are also required to pay taxes.
In Canada, there are different types of taxes, including income taxes. Tax obligations are stipulated at the federal, state, and municipal levels of Canada.
In Canada, the federal, provincial and municipal governments collect money from individuals and companies to help pay for government programs and services.
These programs and services are provided to those who require social assistance, and include social assistance through Ontario Works, Employment Insurance, workplace injury support through the Workplace Safety and Injury Board, Old Age Security, Ontario Student Assistance Program, Ontario Health Insurance Plan, and more.

HST (Harmonized Sales Tax)

The Harmonized Sales Tax (HST) is a consumption tax in Canada. It is used in provinces where both the federal Goods and Services Tax (GST) and the regional Provincial Sales Tax (PST) have been combined into a single value added sales tax. (Total 13%)

Property Tax

If you own a property in Ontario, you need to pay property tax every year. Property tax is calculated based on the municipal tax rate, education tax rate and property value.When you rent a house the tax is included in the rent and you do not need to pay the taxes separately.

Business Tax

A separate tax must be paid to the municipal government if you own a small or a large business.

Income Tax

An income tax is a tax that governments impose on income generated by businesses and individuals within their jurisdiction. By law, taxpayers must file an income tax return annually to determine their tax obligations. Income taxes are a source of revenue for governments. They are used to fund public services, pay government obligations, and provide goods for citizens.
Income for tax purposes includes not only income from employment, but also the following: pension income, government subsidies, and rental income. Passively earned income such as interest, dividends, rent, money received from overseas, etc. is also considered income and must be reported on your taxes, as well as all foreign income and assets.
All individuals residing in Canada must file a tax return reporting their total income and tax expenditures during the year. Even if you have no income, you must file a tax return in order to receive tax-related benefits such as the Working Income Tax Benefit, Canada Child Benefit, GST/HST Credit, and the Ontario Trillium Benefit.
Tax return forms can be obtained in-person at Canada Post outlets and Service Canada offices, or downloaded online from the Canada Revenue Agency website. Income tax returns can be submitted by mail, filed through a free community income tax program, filed online via a CRA-certified tax filing software, or through professional sources such as accountants for a small fee.

CVITP (Community Volunteer Income Tax Program)

The CVITP is a collaboration between participating community organizations and the Canada Revenue Agency ( CRA ). These organizations host free tax preparation clinics and arrange for volunteers to prepare tax returns using UFILE software for eligible individuals. Eligible individuals can search for registered Free Tax Clinics through the CRA website to receive free tax filing services.

Suggested income thresholds

  • 1 person:  $35,000
  • 2 persons: $45,000
  • 3 persons: $47,500
  • More than 5 persons: $52,500 plus $2,500  for each additional person

If the following applies to you, you are not eligible for the CVITP program even if you meet the income requirement:

  • are self-employed or have employment expenses
  • have business or rental income and expenses
  • have capital gains or losses
  • filed for bankruptcy
  • are completing a tax return for a deceased person

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