Help: too much tax being deducted off my paycheque

[rockwolf2001]

So im not 100% sure how taxes work and i'm hoping someone can give me a brief explanation.

i believe that i am being taxed too much on my paycheque. My coworker told me how much he makes and i believe he is in a higher tax bracket than me, but we both got taxed the same percentage off our paycheques. i have two questions:

1. doesn't the percentage you are taxed increase as you make more money? (which is why i believe he is in a higher tax bracket than me)

2. i don't really mind being taxed more if it means that i'll get a bigger rebate at the end of the year. is this how it works or am i completely off on this?

[MrSector9]

http://www.cra-arc.gc.ca/esrvc-srvce/tx/bsnss/pdoc-eng.html

Here is the government calculator

[rockwolf2001]

thanks! i was trying to find something like that, but i didn't know where to find it on the government website

[eblend]

1. Kind of, the more you make the higher tax bracket you may end up in, but that doesn't mean that you go from 30 to 32 percent for example for the whole amount, just for the amount that is in the next bracket. I don't know the exact numbers for anything but if you make 50k per year, first 20 taxed at 15%, next 20 at 20% and last 10 at say 30%, something along those lines. If you make more your take home will always be more, regardless if you are in a higher tax bracket then the next guy. (all those numbers are for example only)

2. If you are overtaxed, yes you will get it all back when you do your taxes, same way as you would have to pay the government if you got undertaxed, which is the case with many people working multiple jobs. If you make min wage at two jobs, one company does not know about the other and you are taxed at the lowest level, but if you combine both pays, you are now in a higher tax bracket and thus owe money to the government.

[ercchry]

lots of other deductions too, which max out around $50k (like cpp and ei) also first $9k (and change) isnt taxed at all... if you are just dividing your net vs gross for a percentage, thats flawed math