Taxation in Canada

Taxation in Canada involves the collection of taxes at each level of government, including federally, provincially and territorially, and locally. The collection of taxes at the federal and provincial and territorial levels are mainly adminstered on behalf of the federal government through the Canada Revenue Agency, excluding Quebec where Revenu Québec administers the collection of provincial tax. Taxes are levied on various income sources, including income, payroll, property, sales, capital gains, dividends, imports, among others; various fees are additionally imposed. As of 2024, taxes collected at the federal, provincial and territorial, and local levels of government amounted to 34.9% of the country's total GDP, above the OECD average of 34.1% of GDP.

The tax policy of Canada is based on the progressive model of taxation, with individuals and businesses paying a higher percentage of tax as the amount of income earned increases.

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