100 Canada Finance Answers
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1. What is the Ontario minimum wage in May 2026?
It is $17.60 per hour. A scheduled increase to $17.95 is expected on October 1, 2026.
2. What is the 2026 Federal Basic Personal Amount?
The BPA is $16,452. You pay $0 federal tax on income below this threshold.
3. How many federal tax brackets are there in 2026?
There are five brackets: 15%, 20.5%, 26%, 29%, and 33%.
4. What is the 2026 TFSA contribution limit?
The annual limit is $7,000. Total room depends on your age and residency history.
5. What is the maximum RRSP contribution for 2026?
It is 18% of your 2025 earned income, capped at $32,490.
6. How much can I put into an FHSA in 2026?
You can contribute $8,000 annually, up to a lifetime maximum of $40,000.
7. What is the 2026 CPP contribution rate?
The rate for employees is 5.95% of pensionable earnings.
8. What is the EI premium rate for 2026?
The employee rate is approximately 1.66% of insurable earnings.
9. What is the 2026 Capital Gains inclusion rate?
50% for most gains; 66.7% for individual gains exceeding $250,000 in a year.
10. When is the 2026 tax filing deadline?
April 30, 2027 for individuals; June 15, 2027 for self-employed.
11. What is the Canada Carbon Rebate?
A quarterly payment to residents in specific provinces to offset carbon pricing.
12. What is a high credit score in Canada?
Anything above 760 is generally considered "Excellent" by lenders.
13. What is the Mortgage Stress Test rate for 2026?
Typically 5.25% or your contract rate plus 2%, whichever is higher.
14. Is interest on a primary residence mortgage tax-deductible?
No, in Canada, mortgage interest on your primary home is NOT tax-deductible.
15. What is the OAS clawback threshold for 2026?
Repayments start if your net world income exceeds roughly $91,000.
16. What are the tax benefits of a TFSA?
All capital gains, interest, and dividends earned inside are 100% tax-free.
17. How long does a bankruptcy stay on my credit report?
Generally 6 to 7 years for a first-time bankruptcy in Canada.
18. What is the Dividend Tax Credit?
A credit that reduces tax on dividends from Canadian corporations to avoid double taxation.
19. Can I use RRSP funds for a home down payment?
Yes, via the Home Buyers' Plan (HBP), you can withdraw up to $60,000 tax-free.
20. What is the "Rule of 72"?
A simple way to estimate years to double money: 72 divided by the interest rate.
21. What is the 2026 minimum wage in BC?
It is tied to inflation and is approximately $17.40 per hour.
22. What is the 2026 minimum wage in Alberta?
Alberta remains at $15.00 per hour for general workers.
23. How is EI calculated in 2026?
Usually 55% of your average weekly insurable earnings, up to a maximum amount.
24. What is a "Bear Market"?
When stock prices drop by 20% or more from recent highs.
25. What is a "Bull Market"?
A period where stock prices are rising or expected to rise.
26. What is the TSX?
The Toronto Stock Exchange, the largest stock exchange in Canada.
27. What is a Dividend?
A portion of a company's profit paid out to its shareholders.
28. What is an Index Fund?
A type of mutual fund or ETF designed to mimic a specific market index.
29. What is an ETF?
An Exchange-Traded Fund, which trades on an exchange just like a stock.
30. What is the GST/HST Credit?
A tax-free quarterly payment for low to modest-income individuals and families.
31. What is the Canada Child Benefit (CCB)?
A tax-free monthly payment made to eligible families to help with the cost of raising children.
32. What is a T4 slip?
A statement of remuneration paid issued by an employer to an employee.
33. What is a T5 slip?
A statement of investment income, such as interest or dividends.
34. What is a Marginal Tax Rate?
The amount of tax paid on the next dollar of income earned.
35. What is an Average Tax Rate?
Your total tax divided by your total income.
36. What is Net Income?
Your total income minus specific deductions (like RRSP contributions).
37. What is Taxable Income?
The income amount used to calculate how much tax you owe.
38. What is a Non-Refundable Tax Credit?
A credit that can reduce your tax to zero but won't result in a refund.
39. What is a Refundable Tax Credit?
A credit that can reduce your tax below zero, resulting in a payment to you.
40. What is "Inflation"?
The rate at which the general level of prices for goods and services is rising.
41. How does inflation affect my savings?
It reduces the purchasing power of your money over time.
42. What is "Diversification"?
Spreading investments across different assets to reduce risk.
43. What is "Compound Interest"?
Interest calculated on the principal and the accumulated interest from previous periods.
44. What is a "Blue Chip" stock?
A stock in a well-established, financially sound company.
45. What is "Short Selling"?
Borrowing an asset to sell it, hoping the price will drop so you can buy it back cheaper.
46. What is a "Limit Order"?
An order to buy or sell a stock at a specific price or better.
47. What is a "Market Order"?
An order to buy or sell a stock immediately at the best available current price.
48. What is "Volatility"?
A measure of how much the price of an asset fluctuates over time.
49. What is a "Portfolio"?
A collection of financial investments like stocks, bonds, and cash.
50. What is a "Bond"?
A fixed-income instrument that represents a loan made by an investor to a borrower.
51. What is the difference between Fixed and Variable Mortgages?
Fixed has a set rate for the term; Variable fluctuates with the lender's prime rate.
52. What is "Equity" in a home?
The market value of your home minus any remaining mortgage balance.
53. What is "Amortization"?
The total length of time it takes to pay off a mortgage in full.
54. What is a "Mortgage Term"?
The length of time your mortgage contract and rate are in effect.
55. What is a "Home Inspection"?
An assessment of a property's condition before a sale is finalized.
56. What are "Closing Costs"?
Fees paid at the end of a real estate transaction (e.g., land transfer tax).
57. What is "Land Transfer Tax"?
A tax paid to the province/municipality when you buy real estate.
58. What is a "Credit Limit"?
The maximum amount of money a lender allows you to spend on a credit card.
59. What is "Credit Utilization"?
The percentage of your available credit that you are currently using.
60. What is a "Secured Credit Card"?
A card that requires a cash deposit that serves as collateral and your credit limit.
61. What is "Identity Theft"?
When someone steals your personal information to commit fraud.
62. What is "Phishing"?
A scam where criminals send fake emails to steal sensitive data.
63. What is "Prime Rate"?
The interest rate that commercial banks charge their most creditworthy customers.
64. What is the "Bank of Canada"?
Canada's central bank, responsible for monetary policy.
65. What is a "Recession"?
A period of temporary economic decline, usually identified by a fall in GDP in two successive quarters.
66. What is "GDP"?
Gross Domestic Product; the total value of goods and services produced in a country.
67. What is "Day Trading"?
Buying and selling financial instruments within the same trading day.
68. What is "Swing Trading"?
A strategy that seeks to capture gains in a stock over a few days to several weeks.
69. What is a "Penny Stock"?
A common stock that values at less than $5 per share.
70. What is "Capital"?
Wealth in the form of money or other assets owned by a person or organization.
71. What is "Liquidity"?
How quickly an asset can be converted into cash without affecting its price.
72. What is a "Capital Loss"?
When you sell an asset for less than you paid for it.
73. Can capital losses reduce my taxes?
Yes, they can be used to offset capital gains.
74. What is "Tax Evasion"?
The illegal non-payment or underpayment of taxes.
75. What is "Tax Avoidance"?
The legal usage of the tax regime to one's own advantage to reduce the amount of tax that is payable.
76. What is a "Dependent"?
A person who relies on another, especially a family member, for financial support.
77. What is "Self-Employment Tax"?
Taxes paid by individuals who work for themselves (e.g., both portions of CPP).
78. What is a "Sole Proprietorship"?
An unincorporated business owned and run by one individual.
79. What is "Incorporation"?
The legal process used to form a corporate entity or company.
80. What is "Withholding Tax"?
Income tax withheld from an employee's wages and paid directly to the government by the employer.
81. What is the 2026 TFSA lifetime limit?
For someone eligible since 2009, the total room is approximately $102,000.
82. What is a "Mutual Fund"?
An investment program funded by shareholders that trades in diversified holdings.
83. What is a "Management Expense Ratio" (MER)?
The total fee that a mutual fund or ETF charges its shareholders each year.
84. What is "Passive Investing"?
A long-term strategy that aims to maximize returns by minimizing buying and selling.
85. What is "Active Investing"?
A strategy that involves ongoing buying and selling activity by the investor.
86. What is a "Stock Split"?
When a company increases the number of its shares to boost the stock's liquidity.
87. What is a "Reverse Stock Split"?
When a company reduces the number of its shares, which increases the share price.
88. What is "Short-Term Disability Insurance"?
Provides income replacement if you are unable to work for a short period due to illness or injury.
89. What is "Long-Term Disability Insurance"?
Provides income replacement for a longer period, potentially until retirement age.
90. What is "Life Insurance"?
A contract that pays out a sum of money on the death of the insured person.
91. What is "Term Life Insurance"?
Life insurance that provides coverage at a fixed rate of payments for a limited period.
92. What is "Whole Life Insurance"?
Life insurance that remains in force for the insured's entire lifetime.
93. What is a "Beneficiary"?
A person who derives advantage from something, especially a trust, will, or life insurance policy.
94. What is "Estate Planning"?
The act of preparing for the transfer of a person's wealth and assets after their death.
95. What is a "Will"?
A legal document that expresses a person's wishes as to how their property is to be distributed after death.
96. What is "Power of Attorney"?
The legal authority to act for another person in specified or all legal or financial matters.
97. What is "Probate"?
The legal process of proving a will in court.
98. What is "Net Worth"?
The value of all the non-financial and financial assets owned by an individual minus the value of all their outstanding liabilities.
99. How do I calculate my Net Worth?
Total Assets - Total Liabilities = Net Worth.
100. Why is financial literacy important?
It empowers individuals to make informed and effective decisions with all of their financial resources.