Attention all Canadian immigrants! Every year, the Canada Revenue Agency adjusts personal tax-related indicators in accordance with the Consumer Price Index published by Statistics Canada. Tax rates for taxpayers at different income levels will be adjusted accordingly, and data such as pre-tax deductions will come into effect starting from January 1, 2016. The GST rebate adjustment will take effect from July 1, 2016.
The Canadian Parliament passed the Liberal Party's tax adjustment proposal by a vote of 230 to 95. According to the tax policy adjusted by the federal government, the increased tax rate is more favorable to low- and middle-income groups. For individuals with an annual income between $45,282 and $90,563, the personal federal income tax rate is 20.5%, a decrease from the previous 22%. For high-income earners (annual income greater than $200,000), the personal federal income tax rate has been increased from 29% to 33%.
In addition, the basic personal tax exemption has been slightly increased. The personal exemption for 2016 is $11,474, a slight increase from the $11,327 in 2015. At the same time, the lifetime capital gains exemption has also been adjusted upward; the exemption in 2015 was $813,600, while in 2016 it is $824,176.
Finally, the 2016 Tax-Free Savings Account (TFSA) limit has been adjusted back from $10,000 to the previous $5,500, officially taking effect on January 1, 2016.
Worldway Gentle Reminder: Canadian immigrants can check the various tax adjustment indicators for 2016 on the official Canada Revenue Agency website, and should carefully check them before filing taxes. Regarding the implementation of the new rules for tax rates and tax-free savings accounts, immigrants need to handle them carefully to ensure that tax planning aligns with their actual situation. As a leading immigration institution with 18 years of experience, Worldway has a comprehensive landing and settlement customer service team that will provide professional and thoughtful service, penetrating into every minute detail of the customer's immigration process to Canada, and striving to help new immigrants integrate into local life as soon as possible. Consultation Hotline: 400-138-2929
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