Classification of income sources

1 - Market income

This category refers to the sum of employment income (wages, salaries and commissions, net self-employment income from farm or non-farm unincorporated business and/or professional practice), investment income, private retirement income (retirement pensions, superannuation and annuities, including those from registered retirement savings plans [RRSPs] and registered retirement income funds [RRIFs]) and other income from market sources during the reference period. It is equivalent to total income minus government transfers. It is also referred to as income before transfers and taxes.

1.1 - Employment income

This category refers to all income received as wages, salaries and commissions from paid employment and net self-employment income from farm or non-farm unincorporated business and/or professional practice during the reference period.

1.2 - Investment income

This category refers to income received during the reference period in the form of interest from deposits in banks, trust companies, co-operatives, credit unions, caisses populaires, etc., interests on savings certificates, bonds and debentures, dividends from both Canadian and foreign stocks, net rental income from real estate, mortgage and loan interest received, regular income from an estate or trust fund, interest from insurance policies, and net partnership income for a limited or non-active partner. This variable does not include net capital gains or losses as they are not part of the standard income definition.

1.3 - Private retirement income

This category refers to all regular income received during the reference period associated with employer or personal retirement pensions, benefits or savings plans. It includes payments received from all annuities, including payments from employer's registered retirement plans (RPP), pooled registered pension plans (PRPP) and matured registered retirement savings plans (RRSP) in the form of a life annuity, a fixed-term annuity, a registered retirement income fund (RRIF) or an income-averaging annuity contract; pensions paid to widow(er)s or other relatives of deceased pensioners; pensions of retired civil servants, Canadian Forces personnel and Royal Canadian Mounted Police (RCMP) officers; annuity payments received from the Canadian Government Annuities Fund, an insurance company, etc. It does not include lump-sum death benefits, lump-sum benefits or withdrawals from a pension plan or RRSP or refunds of over-contributions. Income from a tax-free savings account (TFSA) is not considered retirement income but rather investment income.

1.4 - Market income not included elsewhere

This category refers to regular cash income from market sources that are not included in any of the other market income sources during the reference period. For example, severance pay and retirement allowances, alimony or child support received, periodic support from other persons not in the household, any income from abroad that is not investment income, scholarships, bursaries, fellowships and study grants, and artists' project grants are included.