Canadian Personal Finance Blog

Apologies for the previous posts GAP, I tried to get clever and use FrontPage to create a nice table, and got THAT abomination? Blame it on Mr. Gates, I guess

Let’s start with some assumptions so that we can compare “apples to apples” as best as possible (yes I know I will miss some things, but let’s just start on a relatively level playing field).

1. Let’s assume that the “family” income is around $100,000 (Cdn) a year (yes that is a lot of money)
2. Assume that the family does NOT save any money in RRSP’s (that’s a safe call, since most of us don’t)
3. Won’t make any comments about dependants and such, since they have no effect on the actual tax paid (only whether you receive Family Allowance cheques)
4. No union dues, carrying fees, medical costs, or such that would in some way affect (effect?) the final income numbers
5. Everyone pays the maxium CPP and EI payments for the year (which is a penalty the duel income family must take).
6. No I won’t talk about GST and PST or Tax Credits for these (I’d swear too much and get thrown off my host site most likely if I did).
7. Thse folks live in ONTARIO (the good) just for discussion sake.
8. All of these numbers are straight out of QUICKTAX (but you could easily figure it out using a tax form as well).

So keeping this in mind let us start with our number crunching.

Single Income “Family” (Two Spouses and some kids, but only 1 spouse earns a pay cheque)

Tax payable for Spouse who is “bread winner” in family:

Tax payable for Spouse who stays at home is effectively ZERO.

Thus for a single income family an approximate tax level
would be: $28218.62

or about 28%

Tomorrow (or maybe Monday) how much does a dual income family pay with a family income of $100,000?