I am not talking of a business owner, I am talking of someone, that makes 150k $ in salary. In Ontario, the marginal tax rate is well over 30%.

After maxing out RRSP, what do these folks do? Do they just bite the bullet and pay the CRA? Or do they open up fake corporations and hide the money there? But that would be illegal, right?

  • There are certain things you can do to offset taxes such as RRSP contribution, tax loss harvesting on unregistered accounts, or if the income comes from a business operation, you can expense operating costs, including T&E. There's really not that much you can work with at 150k income.
    – Tom Sun
    Oct 6, 2015 at 15:49
  • $150k is not high income it is middle class!
    – user9822
    Oct 6, 2015 at 20:54
  • @markdooney: Upper middle class, perhaps, but not lower upper class.
    – keshlam
    Oct 6, 2015 at 21:42

1 Answer 1


That's not especially high income, and while I can't speak for Canadians, most of us south of the border just pay the tax. There are tax-advantged retirement savings plans, and charitable donations are often offset by a tax credit, and there are some tax incentives for mortgages, and so on.. but generally the right answer is to just accept that the income tax money was never yours to begin with.

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