Income Tax Basics

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Income Tax Basics
Income Tax Basics
Income Tax Basics
Core Canadian income-tax terms for reported income, tax rates, and the path to taxable income.
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Income Tax Basics
Net Income
Income Tax Basics
Net income is the result after eligible deductions reduce total income and before later steps determine taxable income.
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Income Tax Basics
Total Income
Income Tax Basics
Total income is the combined included income from all reported sources before deductions are applied.
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Income Tax Basics
Effective Tax Rate
Income Tax Basics
The effective tax rate is the average rate paid across taxable income rather than the rate on the next dollar.
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Income Tax Basics
Marginal Tax Rate
Income Tax Basics
The marginal tax rate is the rate that applies to the next dollar of taxable income, not the average rate across all income.
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Income Tax Basics
Taxable Income
Income Tax Basics
Taxable income is the amount to which tax rates are applied after the required income-calculation steps are completed.
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