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