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Wim M asked in Business & FinanceTaxesCanada · 1 decade ago

In Canada what is the max amount you can make before you have to pay taxes if your under 18?

And if so how much would it be?

2 Answers

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  • John Q
    Lv 4
    1 decade ago
    Favorite Answer

    The amount of income that can be earned tax free is known as the basic personal exemption. As income taxes are collected by both the federal and provincial governments, each jurisdiction has a different basic personal exemption. For 2007, the federal basic personal exemption is $8,929, meaning that the first $8,929 of income is not subject to federal income tax. The provincial amounts vary from province to province, ranging from a low of $7,410 in Newfoundland and Labrador, to a high of $15,435 in Alberta.

    There may be other tax credits and deductions available as well, such as tuition and education credits, medical expenses, charitable donations and RRSP contributions to name some of the more common credits. Any of these would increase the amount of income that can be earned tax free.

    If the income you are receiving is in the form of dividends from a Canadian public corporation, then you could receive approximately $60,000 tax free.

    Also bear in mind that if you are receiving income from employment, you will be required to pay employment insurance premiums, regardless of how much income you earned.

    Source(s): Professional accountant
  • 1 decade ago

    The maximum amount one earns to avoid tax is GBP5K per year.

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