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You pay tax to three levels of government, and it comes in five main forms: income tax, sales tax, property tax, customs duties and the payroll contributions that fund CPP and EI. On $60,000 of employment income in Ontario, the types of taxes in Canada that hit your pay add up to $8,320.50 of income tax plus $4,339.75 in CPP and EI.
Which taxes come out of your pay?
Two things, mostly. Income tax is charged on what you earn, in layers: the federal government takes its share and your province or territory takes another. Then come the contributions, CPP or QPP for a pension and EI for job-loss cover. Strictly they’re not taxes, but they leave your cheque the same way, and the CRA groups them with the social insurance programs your earnings pay for.
The income tax calculator splits the two for any province. For a straight paycheque view, the take-home pay calculator does the same job per pay period.
| Tax | Who charges it | What it’s based on |
|---|---|---|
| Income tax | Federal, provincial and territorial governments | Your income, in brackets |
| GST, HST, PST, QST | Federal and provincial governments | The price of what you buy |
| Property tax | Municipalities | Value of land and buildings |
| Customs duties and tariffs | Federal government | Imported and exported goods |
| Health services taxes | Some provinces and territories | Varies by province |
How does sales tax change from province to province?
The GST is a federal tax and the rate is the same across the country. The rest varies. New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Prince Edward Island fold the provincial part into one harmonized tax, the HST. Some other provinces add a separate provincial sales tax on top of the GST.
Here’s what a $1,000 purchase costs in four places, using the rates in our calculators.
| Province | Tax on $1,000 | Total |
|---|---|---|
| Alberta (GST only) | $50.00 | $1,050.00 |
| British Columbia (GST and PST) | $120.00 | $1,120.00 |
| Ontario (HST) | $130.00 | $1,130.00 |
| Quebec (GST and QST) | $149.75 | $1,149.75 |
Try your own province in the GST and HST calculator. Quebec has its own tool, the GST and QST calculator. Not everything is taxed, so groceries and some services come in lower than these figures.
What does property tax pay for, and how is it worked out?
Your city or town sends the bill. It takes an assessed value of your land and buildings and multiplies it by a rate that the municipality sets. Assessed value isn’t the price you’d get if you sold tomorrow, so don’t guess from listings.
As an illustration only, a home assessed at $700,000 with a total rate of 0.75% would owe $5,250 a year. Your bill has the real rate, and the property tax calculator takes it from there, including a part-year figure if you buy or sell mid-year.
Do capital gains and corporations pay their own kind of tax?
Not a different tax, but a different calculation. Businesses pay income tax on their profits, and the corporate tax calculator handles the rates for a private company. Gains from selling an investment are taxed as income too, only part of the gain is counted. Our data uses one half for 2026. The CRA page we read says the planned increase was cancelled but doesn’t print the 50% figure, so check the rate before you rely on it.
With that half in place, a $20,000 gain added to $85,000 of Ontario salary raises income tax from $15,551.05 to $18,516.05. That’s $2,965 on a $20,000 gain. The capital gains tax calculator lets you test your own numbers.
What do people get wrong about taxes?
The biggest one is mixing up the tax on your last dollar with the tax on all of them. A bracket rate only applies to the slice of income inside it. Your average rate is always lower.
Another is thinking every tax is on your income. Sales tax hits a $30,000 earner and a $300,000 earner the same way on the same purchase. Property tax follows the home, not the owner’s pay.
And the calculators above are estimates. They leave out benefits, refundable credits, and most of the special claims on a real return.
Where the numbers come from
The list of tax types and who collects them is from the Canada Revenue Agency’s “Purpose of taxes” page, read in 2026. Federal and provincial income tax figures are the 2026 tax year data in our calculators, taken from the CRA and provincial finance ministries. Sales tax rates come from the CRA’s GST/HST rate table. Quebec’s QST rate of 9.975% is Revenu Québec’s published rate, so confirm it there if the exact figure matters. This site has no link with the CRA or any government.
Frequently asked questions
What are the main types of taxes in Canada?
The CRA lists income tax, sales taxes (GST, HST and PST), property tax, customs duties and tariffs, and health services taxes in some provinces. CPP, QPP and EI contributions come off your pay as well.
Who collects property tax?
Your municipality does. It bases the bill on the assessed value of your land and buildings and the rate it sets.
Is the GST the same in every province?
Yes, the federal GST rate is the same across Canada. What changes is the provincial part, which is either folded into the HST or charged separately as PST or QST.
Are CPP and EI taxes?
They're contributions to social insurance programs, though they come off your pay like tax does. Our estimates show them next to income tax so you see the full deduction.
Do capital gains have their own tax?
No. They're taxed as income, but only part of the gain is counted. We use one half for 2026 and suggest you confirm that with the CRA.
- How Canadian income tax works: brackets and credits
How federal and provincial Canadian income tax stack up, what marginal and average rates mean, and how credits and deductions change your bill
Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.