Locality code data

Major classification variables

The following variables are used in one or more of the tables in this publication:

• Tax status classification
• Income classification

Tax status classification

A return is considered taxable if there was at least $2 of tax payable. Data for non-taxable returns can be determined by subtracting the taxable figures from the corresponding all returns figures.

Some returns are classified as taxable even when the return showed a total income less than the allowable basic personal amount of $10,320. This happened for:

• individuals subject to the minimum tax;
• returns filed by certain non-residents for income earned in Canada that is not subject to personal amounts;
• individuals who resided in Canada for only part of a tax year (these individuals paid tax on the income they earned during their period of residence in Canada, and as a result they are entitled to tax credits only for that period).

It is possible for individuals classified in the upper income ranges to use a variety of deductions and tax credits to achieve a non-taxable status. Among the deductions that can be used are: carrying charges (such as interest paid to earn investment income); business or farm losses of previous years; and allowable business investment losses. Tax filers can also use non-refundable tax credits — such as charitable donations, gifts to Canada or a province or territory, or dividend and foreign tax credits — to reduce their tax to zero.

Income classification

The income classes presented in the tables are based on the total income assessed. This corresponds to line 150 of the return and includes:

• employment income
• pension income
• investment income
• self-employment income
• income from certain other sources
• tax-exempt income

Total income assessed may differ from the true economic income presented in other publications because it does not include certain non-taxable income and it may include grossed-up income such as income from eligible dividends which is the value plus 45%.

A detailed list of non-taxable incomes can be found in the Description of income items.

Date modified:

2012-01-31