Recent Personal And Corporate Tax Developments

On December 7th, 2015, the federal government tabled a Notice of Ways and Means Motion that proposes several personal and corporate tax changes to be effective January 1st, 2016. Some of these changes were originally proposed in the Liberal Party Tax Platform (see our previous Tax Letter: Liberal Party Platform).

Personal tax rates

The tax rate for the second lowest tax bracket ($45,282 to $90,563 of taxable income) will decrease from 22% to 20.5%, which can result in tax relief of up to $679 per person. There will also be a new top federal tax rate of 33% for individuals with taxable income in excess of $200,000. For 2015, the top federal tax rate is 29% on taxable income over $138,586.