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My parents retired, and they will be receiving monthly payments from pension and those things. We live in Ontario. Do these count towards their income tax brackets? Are there other taxes they should be aware of?

In this case wouldn't it make sense to make less than $43,906 from these funds as you get taxed 20.05% if you make less then this amount?

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A couple of points:

(1) Yes, pension income is considered income, and does get taxed basically the same as any regular income.

(2) If you earn above a given tax bracket [let's say $43,900 vs $44,000], it is only the extra income above that bracket that gets taxed at the higher rate. So someone earning $44,000 is only taxed at a higher rate on the $100 above the $43,900 tax bracket. The first $43,900 gets taxed at the same lower rate it would have already.

  • Thank you. Does this include incomes such as contribution plans, canada pension plan, company pension plans, OAS , etc? – Jonathan Aug 10 at 16:19
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    @Jonathan Yes - all of those are considered taxable income, and are more or less taxed like regular income. Some special rules may apply but without a specific question on a specific type of income, it would take a long time to talk about how. In general, assume they are taxed like regular income, generally. – Grade 'Eh' Bacon Aug 16 at 12:40

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