income tax question
 

if i earn $40,000 a year, and im still single, how much is my net income?
im so clueless about taxation...
thx

Is there something specific that you are trying to figure out other than net income?

not really, i just wanna know the amount that i get per year, that's all

if you salary is $40,000 a year then your net income is obviously $40,000 per year...;) (minus any union, professional dues, business expenses if you are self-employed..etc)


Or you are trying to ask how much you are going to have to pay for tax?
If so, calculator here -> http://lsminsurance.ca/calculators/canada/income-tax
in BC..you end up paying about $6000 tax with a $40,000 income and basic deduction

o ic,
what i meant was that how much do i really get after all the deductions (tax, etc)

thx ferra

minus approx 33% for tax. I was earning $45K, and they tax me approx 33% on each paycheck.

well $40,000 minus $6200 = $33,800


math isn't really that hard

If you're paid bi-weekly and about the same each cheque just multiply your take home by 24.

About right.

http://www.cra-arc.gc.ca/esrvc-srvce.../pdoc-eng.html

Wouldnt it be 26 ? cuz there's 2 months for everyone who gets paid bi-weekly that we get paid 3 times in those months

Not sure about in Canada, but it's a lot more complicated in the states - dependants, deductibles (leased cars, education, etc), capital gains/losses, etc...
but i guess these guys ballparked it for ya

You're right. I get paid on the 1st and 15th which isn't bi-weekly. I forgot to account for those extra pay cheques. :)

Sorry to hijack thread as I have a question as well. Tax time is coming and last year I cashed out 2 $1000 (because my money is invested in 2 different funds) from my Mutual Funds Account. I only actually got $900 from each as $100 was labled as "federal tax holding" or some shiet. I know I will have to put this as income but do I put $2000 or $1800?

the bank will have already given you tax papers, or will send soon. and that info will be used on the taxes.

I'm pretty sure it'll be 2000, and you'll be able to add 200 to the area of tax already deducted. but I'd wait to see the bank form.

no... probably about 15% avg for income tax on 45k. + cpp and EI.

this thread is full of so much misinformation and guesses.

According to http://www.taxtips.ca/marginaltaxrates.htm for both Prov. & Federal tax.

20.06% on first $35,716
22.70% on $35,716-$38,832
29.70% from $38,832-$71,433

Plus CP and EI of course.

Inform us all and remove the guess work.

For $40,000 salary, you will be taxed 22% federal and 7.98% Provincial.
Therefore you will have a take home, or net income of roughly $40,000 - (40,000 x 29.98%) = $ 28,008 less any cpp, ei, union fees you may have.

Wrong. Check CRA site before post.

your T4RSP should read 2000 withdrawal and 200 withholding tax paid.

your post above that one was the only one that had any substance to it.


i never said i had the answers, i was just making sure everyone didnt believe every random guess they read on the internet.

:rolleyes: meh
the ITA says 7.98%, CRA has provincial tax listed at 7.7%
but my calculations were off.
it's suppose to be
$40,000 - ($37,885 x 15%) - (2,115 x 22%) - (35,016 x 5.24%) - (4,984 x 7.7%) = ~$31,633.34 of net income less any cpp, ei, etc...

so basically i get roughly around $30,000 after all the deductions?

No, you are wrong.

You should get around $33,000K after tax.