Canada has a progressive tax system. Every Canadian is required to file their income tax annually. Canadians can get their income tax completed with the help of an accountant or even with support from the Canada Revenue Agency. The idea is the more you earn the more you will pay in tax. The Canadian tax system has different credit and deductions that can be avail to help reduce your taxable income. If these credits and deduction are used in an effective and responsible manner, they can sometimes lead to income reduction and tax saving. When you pay tax in Canada it helps to build and grow the Canadian economy.