2016 Tax Rates

Posted Jan 15th, 2016 in News

2016 Tax Rates

Federal personal income tax rate changes for middle and high-income earning individuals.


Middle Class

For the 2016 and subsequent tax years, the federal personal income tax rate on taxable income of $45,282 to $90,563 (the second income tax bracket) will be reduced by 1.5% from 22% to 20.5%. The income tax threshold amounts will continue to be indexed annually as under the existing rules.

High-Income Earners

For 2016 and subsequent tax years, a new federal personal income tax bracket and rate has been proposed. Taxable income over $200,000 will be subject to a federal income tax rate of 33%. This income tax threshold amount will be indexed annually for years after 2016.

The 2016 federal income tax brackets and rates for individuals are:
  • 15% on taxable income of $0 to $45,282
  • 20.5% (proposed) on taxable income above $45,282 but not more than $90,563
  • 26% on taxable income above $90,563 but not more than $140,388
  • 29% on taxable income above $140,388 but not more than $200,000
  • 33% on taxable income above $200,000 (proposed)


These income tax threshold amounts will be indexed annually for years after 2016.

For more info on tax rates, please follow this link http://www.cra-arc.gc.ca/gncy/bdgt/2015/qa13-eng.html

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