Legislative Roundup

Changes in payroll laws and regulations from across Canada
|Canadian Payroll Reporter|Last Updated: 12/01/2015


New income tax rates expected for 2016

Canada’s new Liberal government is proposing to implement new personal income tax rates next year.

During the recent federal election campaign, the Liberals promised to reduce the tax rate for the second tax bracket (meaning annual taxable income between $44,701 and $89,401) from 22 per cent to 20.5 per cent and to introduce a new tax rate of 33 per cent for individuals earning more than $200,000 a year. Currently, the highest tax rate, 29 per cent, applies to taxable income over $138,586.

Government House leader Dominic LeBlanc says one of the government’s first priorities will be to table a bill to implement the tax changes for 2016. Speaking to the media after the new government’s first cabinet meeting in early November, LeBlanc said he expects the income tax amendments to be tabled shortly after Parliament opens on Dec. 3.