It’s a New Year, what does it mean for your taxes?

April 30th will be here before we know it, trust us, we know.  The months of January through April 30th is a time warp where time speeds up in the ANR office.  We sit down at 8:30 and when we look up for the first time, it is 5:30.  No we do not work in the Delorean, nor does Doc Brown or Marty McFly work at the ANR office, but it is a perk associated with working in an accounting firm, the winter months fly by.

There have been some changes for 2016 that you should be aware of in respect of personal income taxes.  First, at the Federal level, the tax rate for income in the range of $45,282 and $90,562 will drop from 22% to 20.5%.

The tax rate for income in excess of $200,000 will be 33%.

The 2016 Personal Amount credit increased slightly to $11,474.  For 2015, the Child Tax Credit for each child under the age of 16 has been removed, which was part of the change in legislation in respect of the Universal Child Care Benefit.  The value of this credit was $338.25 per child.

In respect of Employment Insurance rates, these remain the same for 2016, however the insurable earnings maximum has increased to $50,800, from $49,500 in 2015.  In respect of Canada Pension, maximum pensionable earnings for 2016 has increased to $54,900, which means the maximum CPP employee contribution will be $2,544.30 for 2016

On the Provincial front in New Brunswick, there were changes to the tax rate for income over $250,000, which the new rate is 25.75%.

The New Brunswick Provincial Budget is to be tabled on February 2nd and we will provide full coverage of any changes to tax legislation here on our blog!

-Jason