Banking and Taxes

Banking and Taxes

Moving to a new country means learning about a new monetary system. A currency converter is an excellent tool to aid you in the transition to the Canadian dollar.  There are many currency converters available online including the Universal Currency Converter.

Banking
St. John's has multiple financial institutions such as banks, trust companies and credit unions where you can safely deposit your money. Many employers require you to have a bank account in order to directly deposit your pay. You will require two pieces of identification to open a bank account. All banks are government registered to ensure they adhere to strict regulations and policies. A newcomer should assess his or her financial situation and discuss banking options with various banking service providers to find the bank that best meets their needs. Several of the larger banking institutions have branches in downtown St. John's and are accessible via multiple Metrobus routes (public transit).  Most banks in St. John's operate from Monday to Friday and are closed on weekends and on major holidays. The usual hours of operation run from 10 a.m. to 5 p.m., but several institutions offer extended hours and weekend services. All bank listings, including location and contact information, can be found under "Banks" in the Yellow Pages of the St. John's telephone directory.  For further information on banking in Canada contact the Canadian Bankers Association .

In addition to banks, St. John's has many Automated Teller Machines (ATMs) located in a wide variety of retail stores and public locations throughout the city. ATMs allow you to access your bank account at your convenience. If you use an ATM machine that is not operated by your financial institution you may be charged a processing fee. Usually ATMs can be located by looking for a store front sign that says 'ATM inside'.

Taxes
Residents of Canada must pay federal, provincial and, if you own property, municipal taxes. These help fund the cost of government services. Here are some of the taxes that you can expect to pay while living in Newfoundland and Labrador.

  • Income Tax
All Canadian residents who are old enough to work must, by law, file an income tax return each year, whether or not they have earned money. If you are working for an employer, a percentage of your pay cheque will be deducted and sent to the federal government to cover the income tax that you owe. If too much is deducted, you will receive a refund when you submit your income tax return generally at the end of April. If you have paid too little, you must submit additional payment. Income taxes help fund the cost of government services. For further informartion on income tax and the various tax deductions for which you may be eligible, visit the Canada Revenue Agency website.  
 
  • Harmonized Goods and Services Tax (HST)

The HST is a tax that you pay when you purchase goods and services in Newfoundland and Labrador. It is automatically added to the price of the item at the checkout. Please keep this in mind when you look at the price tag of an item - HST will be added to the price tag amount. The HST rate in Newfoundland & Labrador is 13%.

  • Property Taxes

If you own property in the City of St. John's, you will have to pay property taxes to the municipal government. These taxes are used by the City to fund services such as water, sewage, snow clearing, waste collection and recycling. For further information on municipal taxes visit the City Services section of the website.