How are CFSA pension benefits taxed?
• 10% if payment is less than $5,000.00 • 20% if payment is between $5,000.00 and $15,000.00 • 30% if payment is greater than $15,000.00 Residents of the province of Quebec are taxed at a combined federal and provincial rate of 19%, 22% and 22% for the same amounts. Monthly payments are taxed at source at the rate in accordance with the applicable provincial and federal rate required for the amount paid and any tax credits the payee may have taken advantage of.
