Personal amounts, tax brackets changed in some provinces

Manitoba, New Brunswick, Nova Scotia and Saskatchewan impacted
|payroll-reporter.com|Last Updated: 07/04/2011

Tax changes for Manitoba, New Brunswick, Nova Scotia and Saskatchewan started July 1.

There are no changes to the federal tax rates, income thresholds or personal amounts required for July 1, but there are changes in those provinces.

In Manitoba, the province increased the basic personal amount to $8,384 from $8,134 effective January 1, 2011. Since $8,134 has been used for employees for the first six months of this year, a basic personal amount of $8,634 will be applied for the remaining six months starting with the first payroll in July. The Option 2 personal amounts will not be prorated. Effective July 1, 2011, the prorated amounts for Option 1 are:

· The basic personal amount is revised to $8,634 (previously $8,134)

· The spouse or common-law partner amount is revised to $8,634 (previously $8,134)

In New Brunswick the fourth income tax bracket to 14.3 per cent from 12.7 per cent effective January 1, 2011. Since employees in this income tax bracket have been taxed at 12.7 per cent for the first six months of 2011, a tax rate of 15.9 per cent will be applied starting with the first payroll in July. The Option 2 tax rate will not be prorated. Effective July 1 the rates and tax brackets for Option 1 are:

· 9.1 per cent on income less than or equal to $37,150

· 12.1 per cent on income greater than $37,150, but less than or equal to $74,300

· 12.4 per cent on income greater than $74,300, but less than or equal to $120,796

· 15.9 per cent (previously 12.7 per cent) on income greater than $120,796

In Nova Scotia the province increased the basic personal amount to $8,481 from $8,231 effective January 1, 2011. Since $8,231 has been used for employees for the first six months of this year, a basic personal amount of $8,731 will be applied starting with the first payroll in July. The Option 2 personal amounts will not be prorated. Effective July 1, 2011, the prorated amounts for Option 1 are:

· The basic personal amount is revised to $8,731 (previously $8,231)

· The spouse or common-law partner amount is revised to $7,413 (previously $6,989)

Saskatchewan announced changes to the provincial personal tax credits in the province’s budget in April. Effective July 1, 2011:

· The basic personal amount is revised to $14,535 (previously $13,535)

· The spouse or common-law partner amount is revised to $14,535 (previously $13,535)

· The child amount is revised to $5,514 (previously $5,014)

The form with the updated payroll deductions formulas for computer programs can be found at: http://www.cra-arc.gc.ca/E/pub/tg/t4127-jul/t4127-july-11e.pdf

The payroll deductions calculator can be found at: http://www.cra-arc.gc.ca/esrvc-srvce/tx/bsnss/pdoc-eng.html

Add Comment

  • *
  • *
  • *
  • *