income brackets

2016 Tax changes

Below is a summary of some of the changes between your 2015 and 2016 tax returns. I have discussed some of the important changes in more depth in supplementary articles:
Federal changes:

  • Four of the child tax credits (arts, fitness, education and textbooks) have been eliminated
  • Tax on income between $ 45,282 and $ 90,563 decreases from 22% to 20.5%
  • Tax on income over $200,000 rises from 29% to 33%
  • Family Tax Cut, which allowed couples with children under 18 to transfer up to $ 50,000 to the lower-income-spouse has been eliminated
  • Universal Child Care Benefit (UCCB) will be replaced with the Canada Child Benefit (CCB) beginning in July 2016
  • The TFSA annual limit will be drop from $10,000 to $5,500 for 2016
  • A slight increase in EI and CPP taxes due to the difference between inflation and wage growth
  • The basic personal amount and some other credits will increase by 1.4% for 2017
  • Introduction of teacher and Early Childhood Educator School Supply Tax Credit

Ontario changes:

  • Ontario will double the first-time homebuyers’ maximum land transfer tax refund to $4,000
  • Ontarians will receive a rebate of 8% on rising hydro bills