Both the federal and provincial government have imposed income taxes on individuals.

The federal government charges the bulk of income taxes with the provinces charging a somewhat lower percentage, except in Quebec.

Income taxes throughout Canada are progressive with the high income residents paying a higher percentage than the low income residents.

Where income is earned in the form of a capital gain, only half of the gain is included in income for tax purposes; the other half is not taxed.

Federal and provincial income tax rates are shown at Canada Revenue Agency's website.

Personal income tax can be deferred in a Registered Retirement Savings Plan (RRSP) and tax sheltered savings accounts .

Which may include mutual funds and other financial instruments that are intended to help individuals save for their retirement.