Money

Canada’s currency is the dollar ($).
There are 100 cents (¢) in a dollar.

Canadian coins include the penny (1¢), the nickel (5¢), the dime (10¢), the quarter (25¢), the $1 coin called a “loonie” and the $2 coin called a “toonie”

Common paper bills include $5, $10, $20 and $50

Current exchange rates can be found at www.bankofcanada.ca/en/rates/exchange.html

Taxes

Taxes are used by governments to provide services, such as roads, schools and health care. All Canadian residents are subject to income tax. Taxes are deducted automatically from most income you receive.

Each year, you must submit an Income Tax and Benefit Return to tell the government how much money you earned and how much tax you paid. You must report all “world” income, which is income from all sources both inside and outside Canada. If you paid too much, you will get a refund. If you paid too little, you will have to pay more.

Citizens must pay both Federal and Provincial taxes

Federal Income Tax 2009 Rates:

• 15% on the first $38,832 of taxable income, +
• 22% on portion of taxable income between $38,832 and $77,664, +
• 26% on portion of taxable income between $77,664 and $126,264, +
• 29% of taxable income over $126,264

Newfoundland and Labrador Income Tax 2009 Rates

• 7.7% on the first $31,061 of taxable income, +
• 2.8% on the next $31,060, +
• 15.5% on the amount over $62,121

Taxes Paid on Goods and Services

Most provinces have a Goods and Services Tax (GST) and Provincial Sales Tax (PST) added to the price of all commodities.  Newfoundland and Labrador combines the GST and PST into a single Harmonized Sales Tax (HST).  Our HST = 13%.

Cost of Living