Do I have to pay taxes on my savings account in Canada?

You don't have to pay taxes on savings account deposits in Canada, but you're taxed on interest earned from savings account deposits (unless you have a TFSA and don't exceed your annual contribution limit).

How much tax do you pay on interest earned from savings in Canada?

Your interest income tax rate in Canada is the same as your tax rate for other types of income. The rate depends on your tax bracket, which is determined by adding together your total income from all sources and subtracting any applicable tax deductions.

Do you report TFSAs on your tax return?

No, you don't have to report income earned in a TFSA unless you've exceeded your annual contribution limit.

What are the income tax brackets in Ontario?

For the 2024 tax year, income tax brackets in Ontario are as follows: 5.05% on the first $51,446 9.15% on the next $51,446 - $102,894 11.16% on the next $102,894 - $150,000 12.16% on the next $150,000 - $220,000 13.16% over $220,000 For the 2025 tax year, income tax brackets in Ontario are as follows: 5.05% on the first $52,886 9.15% on the next $52,886 - $105,775 11.16% on the next $105,775 - $150,000 12.16% on the next $150,000 - $220,000 13.16% over $220,000

How much money can you have in your bank account without being taxed in Canada?

In Canada, you're not taxed simply for holding funds in a bank account. Rather, you're taxed on earnings generated from bank account deposits. So, there is no limit to the amount of money you can have in your bank account without being taxed in Canada.

What is nontaxable income in Canada?

Nontaxable income in Canada does not have to be reported with your other income and does not trigger any income tax. Examples include: GST/HST credits Most types of gifts and inheritances Provincial/territorial compensation paid to victims of crime or motor vehicle accidents Lottery winnings (unless determined to be business or employment income)