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Revision as of 08:20, 25 February 2025
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A tax deduction, or "write off" as it's sometimes called, reduces your taxable income by you to subtract number of an expense from your income, before calculating what amount tax you must pay. Modern deductions you or the greater the deductions, the lower your taxable income. Also, additional you reduce taxable income the less exposure you will likely need to the higher tax rates in the bigger income brackets. As you read earlier, Canada's tax system is progressive for that reason the more you earn, the higher the tax rate. Reducing your taxable income decreases the amount of tax payable.
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