Changes to Personal Tax Rates
The Liberal Party has proposed to reduce the tax rate for the
second lowest tax bracket ($44,700 to $89,401 of taxable income)
from 22% to 20.5%, stating that this can result in tax relief of up
to $670 per person. The Liberal Party has also proposed 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.
The table below provides the top marginal tax rates for 2015 and
2016. The rates include the Alberta rate increases announced in
June of 2015. However, please note that the Alberta tax rates for
eligible and ineligible dividends do not account for upcoming
changes to the calculation of Alberta dividend tax credits which we
expect the Alberta Government to announce in the near future
(please see our comments on the 2015 Alberta Budget
here).
