Tax Deductions

bphilis

Hey Guys,

Im a temporary foreign worker in Canada. I currently work full time(and have done since I arrived here 3 years ago), but I'm interested in taking on a part time job also. My concern is however, if I work 2 jobs will I just end up paying it all back on tax next year.
I have tried researching this on the Revenue Agency online and by phone but I cant seem to find any info on this.

Please, if anyone knows anything or has information or experience about this could they reply. I'm here to make money, but not work for free! Thanks!

montreal2011

Getting paid $1000 a week in one job is the same as getting paid $500 (each) in two jobs, in terms of taxable income. Other deductions such as Employment Insurance will add complexity but can be sorted out in your tax return.

Take the example of Newfoundland below. If you earn $33,748 in your current job, you will pay 7.7% tax on it. If your part time job adds another $33,748 to your income, you will still pay 7.7% on your first $33,748, but you will pay the higher rate of 12.5% on the second $33,748.

Since your total is $67,496, you may say that your tax rate overall is 10.1%.

It's all about perspective, but it's a common misconception that there is a point where earning more money either with your current job, or with another part-time job, means you will end up working for free. It can be seen that your pay-per-hour will be less, but it will be largely offset by the fact that you will be working more hours.

Provincial/territorial tax rates for 2013

Newfoundland and Labrador
7.7% on the first $33,748 of taxable income, +
12.5% on the next $33,748, +
13.3% on the amount over $67,496

Prince Edward Island
9.8% on the first $31,984 of taxable income, +
13.8% on the next $31,985, +
16.7% on the amount over $63,969

Nova Scotia
8.79% on the first $29,590 of taxable income, +
14.95% on the next $29,590, +
16.67% on the next $33,820, +
17.5% on the next $57,000, +
21% on the amount over $150,000

New Brunswick
9.39% on the first $38,954 of taxable income, +
13.46% on the next $38,954, +
14.46% on the next $48,754, +
16.07% on the amount over $126,662

Quebec
$41,095 or less: 16%
More than $41,095 but not more than $82,190: 20%
More than $82,190 But not more than $100,000: 24%
More than $100,000: 25.75%

Ontario
5.05% on the first $39,723 of taxable income, +
9.15% on the next $39,725, +
11.16% on the next $429,552, +
13.16 % on the amount over $509,000

Manitoba
10.8% on the first $31,000 of taxable income, +
12.75% on the next $36,000, +
17.4% on the amount over $67,000

Saskatchewan
11% on the first $42,906 of taxable income, +
13% on the next $79,683, +
15% on the amount over $122,589

Alberta
10% of taxable income

British Columbia
5.06% on the first $37,568 of taxable income, +
7.7% on the next $37,570, +
10.5% on the next $11,130, +
12.29% on the next $18,486, +
14.7% on the amount over $104,754

Yukon
7.04% on the first $43,561 of taxable income, +
9.68% on the next $43,562, +
11.44% on the next $47,931, +
12.76% on the amount over $135,054

Northwest Territories
5.9% on the first $39,453 of taxable income, +
8.6% on the next $39,455, +
12.2% on the next $49,378, +
14.05% on the amount over $128,286

Nunavut
4% on the first $41,535 of taxable income, +
7% on the next $41,536, +
9% on the next $51,983, +
11.5% on the amount over $135,054

bphilis

Thanks Montreal2011, that's a great help and good to know! Much Obliged!