New BC Tax Rates in effect for 2016
As promised by Justin Trudeau, a new tax bracket has been introduced for individuals earning greater than $200,000 of taxable income in a given year. Check out the new rates table here which shows a compariosn between the 2015 and 2016 rates. The top rate has been increased from 45.8% to 47.7% for 2016 – however we note that several of the intermediate tax bracket rates have decreased. Overall this fits with the liberals theme of decreasing the tax burden on the middle class. This shift in rates will benefit a large segment of the population. Individuals that are part of the highest tax bracket typically have the means to defer or split income in other ways (if you are interested in this, ask me how).
If you have any questions on personal income tax matters, or business taxes, please do not hesitate to contact our offices at 604-985-0123 or send a message through the website.