Taxes on a $1 Million Salary in Canada

Did you know Canadians are known for being some of the friendliest and happiest people in the world?

But how much do they actually pay in taxes? Let’s say someone earns one million

dollars a year in Canada. First, they pay Canada Pension Plan and

Employment Insurance contributions, which are capped and only amount to a few thousand

dollars even for high earners. After that, they face federal and provincial income

taxes. The federal top tax rate on income over roughly 253 thousand dollars

is 33 percent, although everyone gets a basic personal amount of about 16,600 dollars.

Provincial tax rates vary, ranging from around 20.5 percent in British Columbia