Tax changes in DT Max (2011)

The following is a summary of the various tax changes from the 2011 budgets.

Federal
Newfoundland and Labrador
Prince Edward Island
Nova Scotia
New Brunswick
Quebec
Ontario
Manitoba
Saskatchewan
Alberta
British Columbia
Yukon
Northwest Territories
Nunavut

Federal

• The new tax rates and income brackets as shown on Schedule 1 are as follows:

  Tax Brackets		Rates
  $0	$41,544	15%
  $41,544	$83,088	22%
  $83,088	$128,800	26%
  more than $128,800		29%

  
  

• The personal basic amount is $10,527.

• The age amount is $6,537.

• The spousal amount and the amount for an eligible dependant are both $10,527.

• The amount for an infirm dependant age 18 or older is $4,282 per dependant.

• The maximum eligible earnings for CPP/QPP purposes is $48,300.

• The basic exemption for eligible earnings for CPP/QPP remains at $3,500.

• The rate for CPP/QPP contributions is 4.95%. The maximum CPP/QPP employee contribution is $2,217.60

• The maximum annual insurable earnings for Employment Insurance premiums (EI) is $44,200.

• The EI premium rates are 1.78% for residents of all provinces except Quebec, and 1.41% for Quebec residents.

• The maximum annual EI employee premium is $786.76 for residents of all provinces except Quebec, and $623.22 for Quebec residents.

• The maximum eligible adoption expense amount is $11,128.

• The pension income amount remains unchanged at $2,000.

• The maximum amount eligible for the calculation of the caregiver amount is $4,282 per dependant.

• The disability amount is $7,341.

• The disability supplement amount for taxpayers under 18 is $4,282.

• The maximum medical expense threshold (3% of net income) required to reduce total medical expenses is $2,052.

• The maximum amount for the Canada employment non-refundable tax credit has increased up to a maximum of $1,065.

• The non-refundable tax credit for children under 18 has increased to $2,131 per child.

• The children's fitness amount remains unchanged at $500, plus a $500 supplement for children under 18 with disabilities.

• The education amount for part-time studies and the textbook amount remain unchanged at $120 and $20 per month respectively.

• The education amount for full-time studies and the textbook amount remain unchanged at $400 and $65 per month respectively.

• The maximum amount for the refundable medical expenses supplement (line 452) has increased to up to a maximum of $1,089.

• The home buyers' amount remains unchanged at $5,000.

• The maximum Home Buyers' Plan (HBP) amount that can be withdrawn from an RRSP under the HBP is $25,000.

• Eligible dividends are now grossed-up at a rate of 141% instead of 144%. Non-eligible dividends remain grossed-up at a rate of 125%.

• Eligible dividends provide a federal dividend tax credit of 16.4354%. Dividends other than eligible dividends provide a federal dividend tax credit of 13.3333%.

• Budgetary changes

• Effective for 2011 and subsequent taxation years, the Children's Art Tax Credit will provide taxpayers with a non-refundable tax credit of up to 15% of eligible expenses (for a maximum amount of $500) related to children's artistic activities. Residents of Quebec will only benefit up to 12.53% due to the Quebec Abatement.

• It was proposed that, starting in 2011, the medical expense tax credit threshhold cap of $10,000 for other dependants be eliminated.

• Certain amendments have been proposed regarding the Registered Disability Savings Plan (RDSP) rules that would allow beneficiaries with shortened life expectancies to withdraw funds without being affected by the 10-year repayment rule relating to the Canada Disability Savings Grants (CDSG) and Canada Disability Savings Bonds (CDSB).

• The budget also proposes to provide more flexibility for RESP rules. For example, the new rules may allow individuals not related by blood or marriage (i. e. aunts and uncles) to save for a number of children through individual plans. The new rules will allow for transfers after 2010 among siblings without the threat of penalties.

• For the 2011 and subsequent taxation years, the budget proposes to expand the type of fees eligible for the Tuition Tax Credit. For example, certain trade or professional examination fees will now be eligible.

• Modifications to the rules relating to RRSPs have been proposed to address certain certain situations perceived as abusive, such as accessing RRSP funds without a corresponding income inclusion.

• With respect to Individual Pension Plans (IPPs), two changes have been proposed. First, an annual minimum amount will be required to be withdrawn from an IPP when a plan member reaches 72 years of age. Secondly, contributions to an IPP that relate to past years of employment will be required to be funded either through RRSP assets or a reduction of RRSP contribution room.

• The Tax on Split Income (form T1206) is now expected to apply to certain types of capital gains realized on or after March 22, 2011.

• The Mineral Exploration Tax Credit has been extended again for one year for agreements entered into on or before March 31, 2012.

• The new Volunteer Firefighters Tax Credit is a non-refundable tax credit that will allow a maximum of $450 to be claimed by volunteer firefighters who perform at least 200 hours of volunteer firefighting services in a taxation year.

• Starting in 2011, the non-refundable Child Tax Credit will no longer be restricted to one single credit per household. When two families or more share the same residence, each eligible parent may claim the credit ($2,131 in 2011).

• The 2011 budget proposes a complex new set of tax rules designed to limit the benefit attained by donating flow-through shares to registered charities. These rules aim to limit the capital gains exemption with respect to these types of donations.

• For options granted after March 22, 2011, it is proposed that the charitable donations tax credit or deduction will not be available until the donee actually acquires the property of the taxpayer that is the subject of the option.

Newfoundland and Labrador

• The new tax brackets and rates and the surtax are as follows:

  Tax Brackets		Rates
  $0	$31,904	7.7%
  $31,904	$63,807	12.5%
  more than $63,807		13.3%

  
  

• The personal basic amount is $7,989.

• The age amount is $5,100.

• The spousal amount and the amount for an eligible dependant are $6,528 each.

• The amount for an infirm dependant age 18 or older is $2,537.

• The maximum amount of adoption expenses that can be claimed is $10,782.

• The amount eligible for the calculation of the caregiver amount is $2,537 per dependant.

• The disability amount is $5,391.

• The disability amount supplement for taxpayers under 18 is $2,537.

• The maximum medical expense threshold (3% of net income) required to reduce total medical expenses is $1,740.

• The dividend tax credit for eligible dividends is 11%. The dividend tax credit for dividends other than eligible dividends was set at 5%.

• Budgetary changes

• A new non-refundable tax credit for child care expenses of up to $539 per child will be available, in addition to amounts already deductible.

• A new non-refundable volunteer firefighter's tax credit of up to $231 for firefighters who perform at least 200 hours of service per year.

• Effective October 1, 2011, Newfoundland will introduce the "Residential Energy Rebate" equal to the provincial portion (8%) of the HST for residential energy generated by various energy sources.

Prince Edward Island

• The tax brackets and rates and the surtax remain unchanged:

  Tax Brackets		Rates	Surtax rate	Threshold
  $0	$31,984	9.8%	10%	(over) $12,500
  $31,984	$63,969	13.8%
  more than $63,969		16.7%

  
  

• The personal basic amount is $7,708.

• The age amount is $3,764.

• The spousal amount is $6,546.

• The amount for an eligible dependant is $6,294.

• The amount for an infirm dependant age 18 or older is $2,446 per dependant.

• The amount eligible for the calculation of the caregiver amount remains unchanged at $2,446 per dependant.

• The disability amount remains unchanged at a maximum of $6,890, and the supplement for taxpayers under 18 is $4,019.

• The maximum medical expense threshold (3% of net income) required to reduce total medical expenses has increased to $1,678.

• The amount for young children remains unchanged at $100 per month for each child under six years old up to a maximum of $1,200 per year.

• The dividend tax credit for eligible dividends is 10.5%. The dividend tax credit for dividends other than eligible dividends was set at 1.0%.

• Budgetary changes

• No new personal tax changes were announced.

Nova Scotia

• The new tax brackets and rates and the surtax are as follows:

  Tax Brackets		Rates	Surtax rate	Threshold
  $0	$29,590	8.79%	0%	NIL until a balanced budget is achieved
  $29,590	$59,180	14.95%
  $59,180	$93,000	16.67%
  $93,000	$150,000	17.50%
  more than $150,000		21%

  
  

• The personal basic amount is $8,481.

• The age amount is $4,141.

• The spousal amount and the amount for an eligible dependant are set at $7,201.

• The amount for an infirm dependant age 18 or older is $2,798 per dependant.

• The amount eligible for the calculation of the caregiver amount is $4,898 per dependant.

• The disability amount is $5,035.

• The disability supplement for taxpayers under 18 is $3,449.

• The maximum medical expense threshold (3% of net income) required to reduce total medical expenses is $1,637.

• The tax credit for sport and recreational expenses for children is $500.

• The amount for young children under six years old is $1,200.

• The refundable tax credit for volunteer firefighters residing in Nova Scotia remains at $500.

• The dividend tax credit for eligible dividends was set at 8.85%. The dividend tax credit for dividends other than eligible dividends was set at 7.7%.

• Budgetary changes

• Nova Scotia is one of the two provinces that does not index its personal income tax brackets. These brackets are not scheduled to be indexed for 2011

• Senior citizens who receive the Guaranteed Income Supplement (GIS) are scheduled to receive rebate cheques equal to the amount of provincial income tax paid by the seniors.

New Brunswick

• The new tax rates and income brackets are as follows:

  Tax Brackets		Rates
  $0	$37,150	9.1%
  $37,150	$74,300	12.1%
  $74,300	$120,796	12.4%
  more than $120,796		14.3%

  
  

• The personal basic amount is $8,953.

• The age amount is $4,371.

• The spousal amount and the amount for an eligible dependant are $7,602.

• The amount for an infirm dependant age 18 or older is $4,228 per dependant.

• The caregiver amount is $4,228.

• The disability amount and the amount transferred from a disabled person are increased to $7,248.

• The disability supplement for a disabled person under 18 is increased to $4,228.

• The maximum medical expense threshold (3% of net income) required to reduce total medical expenses has increased to $2,026.

• The dividend tax credit for eligible dividends was set at 12%. The dividend tax credit for dividends other than eligible dividends was set at 5.3%.

• Budgetary changes

• The previously announced income tax rate reduction scheduled to be enacted on January 1, 2012 has been postponed.

Quebec

• The tax rates are unchanged but apply to new income brackets as follows:

  Tax Brackets		Rates
  $0	$39,060	16%
  $39,060	$78,120	20%
  more than $78,120		24%

  
  

• The basic amount is $10,640.

• The amount for persons living alone is $1,245.

• The amount for a single-parent family is $1,545.

• The age amount is $2,290.

• The pension income amount is $2,035.

• The amount for children under 18 engaged in full-time training or post-secondary studies is $3,930.

• The amount for children over 17 engaged in full-time training or post-secondary studies is $7,015.

• The amount respecting other dependants is $2,855.

• The maximum amount of EI premiums is $623.22.

• The maximum amount of Quebec parental insurance plan premiums is $343.68, and the maximum insurable earnings are $64,000.

• The maximum refundable tax credit for medical expenses is $1,074.

• The maximum contribution to the Quebec prescription drug insurance plan (Schedule K) for 2011 is $581.50 per spouse.

• The deduction for workers has increased to a maximum of $1,045.

• The Quebec health contributions amount for every eligible adult resident of Quebec is $100 per adult for 2011, and will be $200 per adult for 2012.

• For the first six months of 2012, the Solidarity Tax Credit will consist of the following components:
  
  

  Solidarity Tax Credit components
  I - Amounts for QST
  - Basic amount	$265
  - Amount for spouse	$265
  - Additional amount for person living alone	$128
  II - Amount for Housing
  - Amount for a couple	$625
  - Amount for a person living alone	$515
  - Amount for each dependant child	$110
  III - Amounts for individuals living in a northern village
  - Amount per adult	$790
  - Amount for each dependant child	$339
  Solidarity tax credit reduction threshold	$31,695

• Dividends other than eligible dividends received will be grossed-up at 125% with a Quebec dividend tax credit of 8%. Eligible dividends will be grossed-up at 141% with a Quebec dividend tax credit of 11.9%.

• Budgetary changes

• There is a new tax credit for volunteer firefighters.

Ontario

• The tax rates are unchanged but apply to new income brackets and the new surtax as follows:

  Tax Brackets		Rates	Surtax rates	Thresholds
  $0	$37,774	5.05%	20% 36%	$4,078 $5,219
  $37,774	$75,550	9.15%
  more than $75,550		11.16%

  
  

• The personal basic amount is $9,104.

• The age amount is $4,445.

• The spousal amount and the amount for an eligible dependant are $7,730 each.

• The amount for an infirm dependant age 18 or older is $4,292 per dependant.

• The amount for pension income is $1,259.

• The caregiver amount is $4,291.

• The disability amount is $7,355.

• The disability supplement for taxpayers under 18 is $4,290.

• The maximum medical expense threshold (3% of net income) required to reduce total medical expenses is $2,061.

• The maximum Ontario Health Premium remains unchanged at $900.

• The maximum amount of eligible expenses related to the adoption of a child under 18 years of age is $11,107 per child.

• The maximum amount of allowable medical expenses for other dependants is $11,107.

• The dividend tax credit for eligible dividends is 6.4%. The dividend tax credit for dividends other than eligible dividends remains unchanged at 4.50%.

• Budgetary changes

• The Ontario government has proposed to introduce the Ontario Trillium Benefit, which will combine the Ontario Sales Tax Credit, the Ontario Energy and Property Tax Credit, and the Northern Energy Credit into one single amount to be delivered on a monthly basis sometime after July 2012.

Manitoba

• The new tax rates and income brackets are as follows:

  Tax Brackets		Rates
  $0	$31,000	10.8%
  $31,000	$67,000	12.75%
  more than $67,000		17.4%

  
  

• The personal basic amount is $8,384.

• The age amount is $3,728.

• The spousal amount, and the amount for an eligible dependant are $8,384 each.

• The amount for an infirm dependant age 18 or older is $3,605 per dependant.

• The $10,000 limit for the allowable amount of medical expenses for other dependants has been eliminated.

• The caregiver amount is $3,605.

• The disability supplement for taxpayers under 18 is $3,605.

• The disability amount is $6,180.

• The maximum medical expense threshold (3% of net income) required to reduce total medical expenses is $1,728.

• The maximum amount of eligible expenses related to the adoption of a child under 18 years of age is $10,000 per child.

• The dividend tax credit for eligible dividends is set at 11%. The dividend tax credit for dividends other than eligible dividends has remained at 1.75%.

• Budgetary changes

• Commencing in 2011, the basic amount for the Education Property Tax Credit has increased from $650 to $700.

• The maximum amount for Senior's Education Property Tax Credit is scheduled to increase from $800 to $950 in 2011. Subsequently, it will increase to $1,012 in 2012 and to $1,100 in 2013.

• The children’s fitness amount has been changed to the fitness amount. It can now be claimed for young adults under 25 years of age.

• Manitoba has introduced the Children's Arts and Cultural Activity Tax Credit, which is a non-refundable tax credit that can provide tax savings of up to $54 ($500 x 10.8%).

• Starting in 2011, the Primary Caregiver Tax Credit increased by 25% to $1,275 instead of $1,020.

• The mineral exploration tax credit has been extended to cover investments in flow-through shares of qualifying mineral exploration companies made before April 1, 2015. This tax credit is equal to 30% of qualifying investments.

• The Community Enterprise Development Tax credit is extended to December 31, 2014. This non-refundable tax credit provides an investor with a 30% tax credit up to a maximum credit of $9,000 based on maximum annual investments of no more than $30,000.

Saskatchewan

• The tax rates are unchanged but apply to new income brackets as follows:

  Tax Brackets		Rates
  $0	$40,919	11%
  $40,919	$116,911	13%
  more than $116,911		15%

  
  

• The personal basic amount has increased to $14,535.

• The age amount has increased to $4,428.

• The spousal amount and the amount for an eligible dependant are $14,535 each.

• The amount for an infirm dependant aged 18 or older is $8,563 per dependant.

• The $10,000 limit for the allowable amount of medical expenses for other dependants has been eliminated.

• The caregiver amount and the disability supplement for taxpayers under 18 are $8,563 each.

• The disability amount and the amount transferred from a disabled person are $8,563 each.

• The maximum medical expense threshold (3% of net income) required to reduce total medical expenses has increased to $2,052.

• The child amount has increased to $5,514 per child.

• The senior supplementary amount has increased to $1,169.

• The dividend tax credit for eligible dividends was set at 11%. The dividend tax credit for dividends other than eligible dividends remains at 5%.

• Budgetary changes

• No major personal income tax changes were announced.

Alberta

• The income tax rate remains unchanged at a flat rate of 10%.

• The personal basic amount has increased to $16,977.

• The age amount has increased to $4,731.

• The spousal and eligible dependant amounts are $16,977 each.

• The amount for an infirm dependant aged 18 or older has increased to $9,827 per dependant.

• The amount for retirement income has inceased to $1,307.

• The limit for the allowable amount of medical expenses for other dependants has been eliminated.

• The caregiver amount and the disability supplement for children are $9,827 each.

• The disability amount is $13,095.

• The maximum medical expense threshold (3% of net income) required to reduce total medical expenses has increased to $2,194.

• The maximum amount of eligible adoption expenses for any child under 18 is increased to $11,611.

• The dividend tax credit for eligible dividends is 10%. The dividend tax credit for dividends other than eligible dividends is 3.5%.

• Budgetary changes

• No major personal income tax changes were announced.

British Columbia

• The tax rates are unchanged but apply to new income brackets as follows:

  Tax Brackets		Rates
  $0	$36,146	5.06%
  $36,146	$72,293	7.7%
  $72,293	$83,001	10.5%
  $83,001	$100,787	12.29%
  more than $100,787		14.7%

  
  

• The personal basic amount is increased to $11,088.

• The age amount has increased to $4,254.

• The spousal amount and the amount for an eligible dependant are $9,730 each.

• The amount for an infirm dependant age 18 or older is $4,151 per dependant.

• The amount of allowable medical expenses for other dependants remains unchanged at $10,000.

• The caregiver amount is $4,150.

• The disability supplement for taxpayers under 18 is $4,151.

• The disability amount is $7,114.

• The maximum amount of eligible adoption expenses is $11,128.

• The maximum medical expense threshold (3% of net income) required to reduce total medical expenses is $1,972.

• The dividend tax credit for eligible dividends was reduced to 10.31%. The dividend tax credit for dividends other than eligible dividends is 3.4%.

• Budgetary changes

• No major personal income tax changes were announced

Yukon

• The unchanged tax rates and new brackets and the surtax are:

  Tax Brackets		Rates	Surtax rate	Threshold
  $0	$41,544	7.04%	5%	$6,000
  $41,544	$83,088	9.68%
  $83,088	$128,800	11.44%
  more than $128,800		12.76%

  
  

• The personal basic amount has increased to $10,527.

• The age amount has increased to $6,537.

• The spousal amount and the amount for an eligible dependant are $10,527 each.

• The amount for an infirm dependant aged 18 or older is $4,282 per dependant.

• The amount for each child who has under 18 years of age at the end of the year is $2,131.

• The pension income amount remains unchanged at $2,000.

• The $10,000 limit for the allowable amount of medical expenses for other dependants has been eliminated.

• The sport and recreation amount remains unchanged at $500 per child under the age of sixteen years. Furthermore, a supplement of $500 is available for children who are eligible to the disability amount and are under the age of 18 at the beginning of the year.

• The caregiver amount is $4,282.

• The disability supplement for taxpayers under 18 is $4,282.

• The disability amount is $7,341.

• The maximum medical expense threshold (3% of net income) required to reduce total medical expenses is $2,052.

• The dividend tax credit for eligible dividends was set at 15.08%. The dividend tax credit for dividends other than eligible dividends was set at 4.51%.

• Budgetary changes

• No major personal income tax changes were announced.

Northwest Territories

• The new tax brackets and unchanged rates are:

  Tax Brackets		Rates
  $0	$37,626	5.9%
  $37,626	$75,253	8.6%
  $75,253	$122,345	12.2%
  more than $122,345		14.05%

  
  

• The personal basic amount is $12,919.

• The age amount is $6,319.

• The spousal amount and the amount for an eligible dependant are $12,919 each.

• The amount for an infirm dependant aged 18 or older is $4,282 per dependant.

• The caregiver amount is $4,282.

• The disability supplement for taxpayers under 18 is $4,282.

• The disability amount is $10,476.

• The maximum medical expense threshold (3% of net income) required to reduce total medical expenses is $2,052.

• The amount of allowable medical expenses for other dependants remains unchanged at $5,000.

• The dividend tax credit for eligible dividends is 11.5%. The dividend tax credit for dividends other than eligible dividends is 6%.

• Budgetary changes

• No major personal income tax changes were announced.

Nunavut

• The tax rates are unchanged but apply to new income brackets as follows:

  Tax Brackets		Rates
  $0	$39,612	4%
  $39,612	$79,224	7%
  $79,224	$128,800	9%
  more than $128,800		11.5%

  
  

• The personal basic amount is $11,878.

• The age amount is $8,909.

• The spousal amount and the amount for an eligible dependant are $11,878 each.

• The amount for an infirm dependant aged 18 or older is $4,282 per dependant.

• The caregiver amount is $4,282.

• The disability supplement for taxpayers under 18 is $4,282.

• The pension income amount remains unchanged at $2,000.

• The disability amount is $11,878.

• The maximum medical expense threshold (3% of net income) required to reduce total medical expenses is $2,052.

• The $10,000 limit for the allowable amount of medical expenses for other dependants has been eliminated.

• The amount for young children remains unchanged at $1,200 for each child under six years of age.

• The dividend tax credit for eligible dividends is 5.8%. The dividend tax credit for dividends other than eligible dividends is 4%.