INCOME TAX in Canada Explained in under 12 Minutes

Описание: How Income Tax ACTUALLY Works in Canada 🇨🇦 | T4s, Brackets & Refund Myths

Income tax in Canada often feels like a black box.

You work all year.
Money comes off every paycheque.
You file your taxes… and then you either get a refund or owe money — without fully understanding why.

In this video, Yudhvir Kabuli, CPA, CFA, explains how income tax actually works in Canada, step by step — using clear language, simple examples, and real-world logic.

This is not tax hype.
This is how the system truly works.

📌 What You’ll Learn in This Video

• How your paycheque and T4 connect to your tax return
• What the key lines on a T4 slip actually mean
• The difference between marginal vs average tax rates
• Why getting a raise never makes you poorer
• How CRA calculates the tax you owe
• What a tax refund really means
• Why “RRSP refund” is one of the biggest myths in Canada
• Why owing tax isn’t always a bad thing
• How employers withhold tax during the year
• Practical ways to think about tax planning

🇨🇦 Understanding the Canadian Income Tax System

Canada uses a progressive tax system, meaning different layers of your income are taxed at different rates. Your entire income is not taxed at your highest bracket.

That’s why:
• Raises still increase take-home pay
• Bonuses don’t “push all your income” into a higher rate
• Marginal tax rate ≠ average tax rate

Once you understand this, income tax stops feeling random — and starts making sense.

💡 The Truth About Tax Refunds & RRSPs

A tax refund doesn’t mean you “paid no tax.”
It means you paid too much during the year and CRA is returning the difference.

And RRSP refunds?
They’re not free money.

RRSPs work through tax deferral, not magic.
The real power comes when you reinvest the refund and let compounding do the work.

👥 Who This Video Is For

This video is for:
• Canadian employees
• Young professionals
• New grads & newcomers
• Anyone confused about T4s, refunds, or tax brackets
• Canadians tired of tax myths on social media

If you want clear, Canadian-specific personal finance education, this channel is your place.

👇 Comment below:
What part of Canadian income tax still feels confusing — T4s, tax brackets, refunds, or RRSPs?

Subscribe for more videos on RRSPs, TFSAs, FHSAs, taxes, and real financial decision-making in Canada.

Welcome to Your Canadian Money Playbook 🇨🇦


Chapter-
00:00 – How Canadian Taxes Really Work (Overview)
00:44 – Disclaimer
01:00 – Roadmap: How We’ll Break This Down
01:22 – Your Pay Stub & the T4 Explained
02:50 – Marginal vs Average Tax Rate
04:50 – Inside the Tax Return: What Actually Happens
06:06 – Real Numbers: No RRSP vs With RRSP
07:49 – Tax Refund Myths (Busted)
10:49 – Final Recap & Key Takeaways



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