Provincial taxes

[Nuggs]

Is there some reason why I would all of a sudden no longer pay Provincial income tax in the new year?

For instance is there some formula like there is with EI / CPP where its paid up untill a certain point and stops?

Sorry I know this sounds like an asinine question, but I havn't paid a cent in provincial income tax since Jan 1st, and my OR just checks thats its setup correctly in the system and sends me on my way 



Edit - spelling fix

 

[Eye In The Sky]

To my understanding, all of your income tax deductions go into Federal.  I show no actual Provincial income tax deductions on any pay statements.

Come tax time, I complete my tax return.  Included in that is my Provincial tax amount, for me in NS for the 2008 tax year that meant completing a NS 428 form.  That told Mr Taxman how much of my total income tax deducted for applicable tax year should go to my province of residence (for me, its NS at this time) and how much of that CRA gets to put in their coffers.

So, I don't pay provincial income tax as deductions off my pay, its done at tax time thru whatever black magic CRA and my provincial government have set up.  Or, atleast that how it appears to happen to me.

 

[SupersonicMax]

Unless you live in Quebec, where you will have Provincial Income Tax taken from your pay.

 

[FastEddy]

Is there some reason why I would all of a sudden no longer pay Provincial income tax in the new year?

For instance is there some formula like there is with EI / CPP where its paid up untill a certain point and stops?

Sorry I know this sounds like an asinine question, but I havn't paid a cent in provincial income tax since Jan 1st, and my OR just checks thats its setup correctly in the system and sends me on my way 



Edit - spelling fix

Are you Bragging or Complaining, come on over to Quebec, we're a Equal Taxation Opportunity Province. We Tax everybody and everything.

Cheers.

 

[Nuggs]

Thanks Eye In The Sky.

I was just starting to get worried about owing a ton next year. Odd that my Mid Nov and Dec guides show me paying Provincial taxes though.

 

[Pusser]

The only time you should see provincial tax deductions on your pay statement is if you live in Quebec and are paying Quebec taxes (i.e.  If you're on IR in Quebec and your primary residence is outside of Quebec, then you don't pay Quebec taxes).  Everybody pays provincial income tax, but Quebec is the only province that collects it separately.  Every other province has an agreement with CRA, who collect provincial income taxes on their behalf.  CRA then transfers the money to the provinces in a separate transaction. 

In short, outside Quebec, there is only one income tax collector (the federal government - CRA) and so there is only one deduction shown on your pay statement.  If your primary residence is not in Quebec and you see provincial tax deductions on your pay statement, you need to talk to your pay office.