The 2018 edition of the ISTFM tables summarize data from initially assessed individual income tax and benefit returns for the 2015 tax year processed up to August 22, 2016.

Explanatory notes

The 2018 edition of the ISTFM tables summarize data based on 2015 tax year returns. This represents about 95% of the number of returns filed for the 2015 tax year. The initial assessment values are used to produce the tables. They do not include changes to the data resulting from an Agency or a tax filer initiated reassessment.

All of the numbers in this publication may be revised as more returns are processed and reassessed.

Individual Statistics by Tax Filing Method

The individual statistics by tax filing method (ISTFM) tables present statistics on the filing method of tax filers grouped by their demographic and economic characteristics. The information is presented at the census metropolitan area and census agglomeration (CMA/CA) level as defined by the 2011 census metropolitan categories by Statistics Canada.

Census metropolitan area and census agglomeration

Census metropolitan areas (CMA) and census agglomerations (CA) are the main labour market areas, formed by one or more adjacent municipalities centered on a large urban area (known as the urban core). A CMA must have a total population of at least 100,000 of which 50,000 or more live in the urban core. A CA must have an urban core population of at least 10,000. To be included in the CMA or CA, other adjacent municipalities must have a high degree of integration with the central urban area, as measured by commuting flows derived from census place of work data.

Data source

Data were taken from income tax returns and related schedules filed by individuals for the 2015 tax year, for the following type of returns:

• T1 Income Tax and Benefit Return

Confidentiality procedures

To ensure the protection of tax filer information, the data have been suppressed where warranted. As well, the counts have been rounded to the nearest multiple of 10. For example, 104 would be rounded to 100 and 105 would be rounded to 110.

Classification variables

The following variables are used in one or more of the tables in this publication:

• filing method
• major source of income
• total income range
• complexity of T1 return
• marital status
• children or no children status
• age range

Filing method

The filing method is determined by the information on record at the Canada Revenue Agency. Individual tax filers submit tax returns by one of the three available filing methods:

• EFILE,
• NETFILE, and
• paper (includes 2D barcode)

Major source of income

The major sources of income presented in the tables are based on the source of income with the largest share in the total income assessed. This corresponds to line 150 of the T1 Income Tax and Benefit Return and includes:

• employment income
• pension income
• investment income
• net self-employment income
• other income
• multiple sources of income
• no income

Employment income includes:

• Employment income (box 14 of all T4 slips) ─ line 101 of the return
  This is the amount, including commission income from line 102 of the return and from T4 slips.
• Other employment income ─ line 104 of the return
  This amount includes the following types of income:
  • tips and occasional earnings
  • net research grants
  • clergy’s housing allowance and/or an amount for eligible utilities
  • foreign employment income
  • income-maintenance insurance plans (wage-loss replacement plans)
  • veterans' benefits
  • certain goods and services tax/harmonized sales tax (GST/HST) and Quebec sales tax rebates
  • royalties
  • amounts received under a supplementary unemployment benefit plan (a guaranteed annual wage plan)
  • taxable benefits for premiums paid for a group term life-insurance plan
  • employees profit-sharing plan amounts (EPSP)
  • medical premium benefits
  • Wager Earner Protection Program

Pension income includes:

• Old age security pension ─ line 113 of the return
  This amount is a monthly benefit paid to people 65 years of age or over (box 18 of the T4A (OAS) slip).
• Canada Pension Plan or Quebec Pension Plan benefits ─ line 114 of the return
  This includes death and disability benefits, survivor benefits, and children’s benefits received by a child of a deceased or disabled contributor (box 20 on the T4A (P) slip).
• Other pensions and superannuation ─ line 115 of the return
  This includes income from registered pension plans, registered retirement income funds, deferred profit-sharing plans, foreign pensions, etc.
• Elected split-pension amount ─ line 116 of the return
  This is the amount from line G of Form T1032, Joint Election to Split Pension Income.

Investment income includes:

• Taxable amount of dividends (eligible and other than eligible) from taxable Canadian corporations ─ line 120 of the return
  This is the total dividend value, plus a 38% gross-up for the eligible dividends and a 25% gross-up for other than eligible dividends.
• Interest and other investment income ─ line 121 of the return
  This includes interest, foreign interest, dividend income, etc.
• Net partnership income: limited or non-active partners only ─ line 122 of the return
  This is the share of the net business income or loss from limited partnerships.
• Net rental income ─ line 126 of the return
  This is rental income after expenses.
• Taxable capital gains ─ line 127 of the return

Net self-employment income corresponds to the gross income, less any adjustments and expenses incurred. It includes the following:

• Net business income ─ line 135 of the return
  This is the income from businesses and partnerships. A business is an activity carried on with the intention to make a profit.
• Net professional income ─ line 137 of the return
  This is income only from an independent practice, such as earnings by self-employed accountants, doctors, dentists and lawyers. However, when a professionally qualified person is employed by a company, government or institution, the individual’s income is included in employment income.
• Net commission income ─ line 139 of the return
  This is net commission income for self-employed people, such as real estate agents, who are working in sales and earning commissions.
• Net farming income ─ line 141 of the return
  Self-employed farmers, including beekeepers and tree farmers, report their income on this line.
• Net fishing income ─ line 143 of the return
  This is net income from self-employed people fishing as boat owners or crew members, or fishing from shore.

Other income includes:

• Universal child care benefit (UCCB) ─ line 117 of the return
  The taxable amount of the UCCB from January to June, 2015. Beginning in July 2015 the UCCB was replaced by the non-taxable Canada Child Benefit (CCB).
• Employment insurance and other benefits ─ line 119 of the return
  This is the amount of benefits from the Employment Insurance Plan (box 14 on the T4E slip).
• Registered disability savings plan income ─ line 125 of the return
  This is income from a registered disability savings plan and is shown in box 28 of the T4A slip.
• Support payments received ─ line 128 of the return
  This is the taxable part of support payments received.
• RRSP income ─ line 129 of the return
  This is income from a registered retirement savings plan.
• Other income ─ line 130 of the return
  This includes the income reported on line 130 of the return:
  • scholarships, fellowships, bursaries and artists' project grants
  • apprenticeship incentive grant
  • apprenticeship completion grant
  • lump-sum payments from pensions and deferred profit-sharing plans when leaving a plan
  • retiring allowances (severance pay)
  • death benefits (other than Canada Pension Plan or Quebec Pension Plan death benefits)
  • other kinds of income (see the General Income Tax and Benefit Guide - 2015 for more details)
• Workers' compensation benefits ─ line 144 of the return
  This is the amount of compensation paid in respect to an injury, disability, or death to an employee, or surviving spouse/common-law partner, under the law of Canada or a province or territory. These amounts are shown on a T5007, Statement of Benefits slip.
• Social assistance payments ─ line 145 of the return
  This item shows the social assistance payments made to beneficiaries or third parties as reported on a T5007, Statement of Benefits slip.
• Net federal supplements ─ line 146 of the return
  This is the net amount of any Allowance, Allowance for the survivor, or Guaranteed Income Supplement received in the tax year, box 21 of the T4A (OAS) slip.

A tax filer for whom no single source of income accounts for the largest share of the total income assessed is classified as having multiple sources of income.

Income range

The income range classification is determined by the ‘total income assessed’ reported on line 150 of the T1 General Income Tax and Benefit Return in the 2015 tax year. There are four defined income ranges:

• less than $25,000
• between $25,000 and $49,999
• between $50,000 and $99,999
• $100,000 and above

Complexity of T1 return

A T1 return is considered complex if at least one of the following conditions applies:

• positive gross self-employment income (lines 162, 164, 166, 168, or 170 from the T1 return)
• positive net partnership income (line 122 from the T1 return)
• positive taxable amounts of dividends or capital gains (line 120 from the T1 return)
• positive taxable amounts of interest income over $1,000 (line 121 from the T1 return)
• positive rental income (line 160 from the T1 return)
  
• the tax filer has declared bankruptcy
• the tax filer is deceased

All other T1 returns are considered simple. This definition is established by the same criteria that is used to determine a tax filer’s eligibility for the Community Volunteer Income Tax Program.

Marital status

The marital status of the tax filer is as reported on page 1 of the T1 return. The marital status is defined as:

• married or living common law
• single, divorced or widowed
• unstated

Tax filers who did not declare a marital status are classified as ‘unstated’. They represent approximately 0.12% of the tax filers in the ISTFM publication.

Children or no children status

Tax filers with children are those who are recipients of Canada Child Tax Benefit (CCTB) payments, or are the spouse or the common-law partner of a CCTB recipient.

Tax filers without children are those who are not recipients of CCTB payments and are not a spouse or a common-law partner of a CCTB recipient.

Age range

The age of the tax filer is determined using the reported year of birth on page 1 of the T1 General Income Tax and Benefit Return. Individuals with no reported date of birth are included in the total. There are four age ranges:

• less than 18 years
• between 19 and 25 years
• between 26 and 64 years
• 65 years and older

Description of ISTFM tables

Each table presents the number of tax filers. All tables include statistics for all returns. These tables are available in comma-separated values (CSV) format.

CSV format (raw data, with single row header)

• Table 1 – ISTFM for All Returns Filed – Economic Characteristics – 2015 tax year
• Table 2 – ISTFM for All Returns Filed – Demographic Characteristics – 2015 tax year