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How much income do you need to buy a home in Canada? A look at home affordability in March 2025 + MORE Apr 30th
Canada’s income tax brackets for 2024, plus the maximum tax you’ll pay based on income + MORE Apr 16th
Canada has new rules for high-interest loans—here they are + MORE Jan 7th
Do you have to make quarterly tax remittances in Canada?
– moneysense.ca
I received a notice from the CRA that I now have to pay quarterly income tax every year. I would like to know how this is calculated so that I can be prepared for the upcoming payments. Is there a formula that I can base on?
—Jack
Quarterly tax payments in Canada
Taxpayers who are notified by the Canada Revenue Agency (CRA) that they must make quarterly tax installment remittances often wonder why, especially if their income has dropped from the prior year. Those requests can typically result in pre-payments of tax that are too high. What can be done? Jack, here’s a guide to making the correct payments, and no more.
What are the quarterly income tax payment dates in Canada?
Canadian taxpayers who follow a quarterly payment schedule submit payments on or before these dates:
March 15
June 15
September 15
December 15
Those in the farming or fishing industries may be required to make a single payment on December 31.
Also read
Income Tax Guide for Canadians
Deadlines, tax tips and more
read now
Who must make quarterly tax installments?
Jack, why you received the notice depends on where you live in Canada and how much taxes you owe in a year…
The best high-interest savings accounts in Canada for 2024
– moneysense.ca
Find the best and most up-to-date savings rates in Canada using the comparison tool below. Plus, use the filters to assess your estimated return based on the size of your balance.
Why trust us
MoneySense is an award-winning magazine, helping Canadians navigate money matters since 1999. Our editorial team of trained journalists works closely with leading personal finance experts in Canada. To help you find the best financial products, we compare the offerings from over 12 major institutions, including banks, credit unions and card issuers. Learn more about our advertising and trusted partners.
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Best high-interest savings account rates in Canada
Generally, savings accounts offer very low interest rates. So, if you want to earn on your deposits (rather than simply using your account as a temporary “holding tank” or directing to longer-term saving and investing vehicles), a savings account with a high interest rate is a no-brainer…
Canada’s annual inflation fell to 1.6% in September
– moneysense.ca
Statistics Canada says the annual inflation rate continued to slow in September as drivers paid lower prices for gasoline than they did last year.
The agency said Tuesday its consumer price index for September was up 1.6% from a year ago compared with a year-over-year increase of 2% in August.
It was the slowest annual pace for inflation since February 2021 when it was 1.1%.
Gasoline prices in September fell 10.7% compared with a year earlier. Excluding gasoline, the annual pace of inflation was 2.2% in September.
Meanwhile, rent prices increased at a slower pace in the month but remained elevated as they rose 8.2% compared with a year ago following a year-over-year gain of 8.9% in August.
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How has inflation affected Canadians’ finances in recent years?
– moneysense.ca
Inflation and higher interest rates have eroded Canadians’ purchasing power since 2022, particularly for lower-income households, a new report from the parliamentary budget officer has found.
But wealthier households have seen their purchasing power rise thanks in big part to their investment income.
Over a longer time period—since the last quarter of 2019—the average purchasing power of Canadian households rose by 21%.
Government transfers, wage gains and net investment income supported the gain, said Parliamentary Budget Officer Yves Giroux in the report.
“However, this conclusion does not provide a full picture of the recent changes to purchasing power in Canada,” the report said. “In fact, it is widely accepted that inflation and the accompanying tightening of monetary policy have affected household purchasing power disproportionately, depending on income level.”
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What does high inflation mean for your retirement savings?
– moneysense.ca
After decades of steady inflation that more or less stayed within the Bank of Canada’s target range of 1% to 3%, inflation soared to a decades-high rate of 8.1% in June 2022. The central bank cranked up interest rates to squash inflation, but the rate of price growth stayed stubbornly above the 2% target for another two years.
Thankfully, this past August’s inflation print hit the bull’s-eye of 2%, and September’s CPI was even lower, at 1.6%. With the inflation beast finally tamed, the Bank of Canada and its American counterpart, the U.S. Federal Reserve, have started lowering interest rates in hopes of avoiding a recession and nailing a so-called “soft landing.”
With that ugly period of high inflation now in the rearview mirror, what’s an investor to do with their portfolio?
How inflation can affect an investment portfolio
Historically, stock and bond returns have beat inflation over long periods of time, but both assets tend to perform poorly during periods of high inflation…
