Why am i getting taxed 70 percent on rental income
New Member

Why am i getting taxed 70 percent on rental income

Before i enter my rental income i have a $9000+ refund. After i enter my rental income ($10,000 net) i have a refund of only $2000. Why am i getting taxed $7000 on $10,000 of income?

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New Member

Investors and rental owners

Without the details of your specific situation I can not explain in detail. 

However, it is possible that the additional 10k of income pushed you into a higher tax bracket thus charging you more tax on your income/making lower income credits unavailable. Example going from 94k to 96k of income will cause an additional 6% tax. 

Here is a quick reference link for the CRA tax brackets:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/frequently-asked-questions-individu...

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