What’s new

  • Section 1 - Tax System

    – Since 2016, for federal purposes, the tax rate applicable to the second tax bracket is reduced from 22% to 20.5% and a new 33% tax bracket applies to taxable income over $200,000.

    – Since 2016, in New Brunswick, the top marginal tax rate of 25.75% is eliminated and the rate applicable to taxable income over $150,000 has been decreased from 21% to 20.3%.

  • Section 2 – Individuals and Families

    – In Ontario, the tax credit for children’s activities will be eliminated as of January 1, 2017.
    – In New Brunswick, low and middle-income families can benefit from a new HST refundable tax credit.
    – The deduction for residents of remote areas was increased in 2016.
    – The capital gain on certain donations involving private corporation shares or real estate will not be tax-exempt in 2017, as this measure was cancelled.

    Federal

    – The UCCB and CCTB were cancelled and replaced by the new CCB, payable as of July 2016.
    – The family tax cut is eliminated as of 2016.
    – The tax credits for fitness and artistic activities for children were reduced in 2016 and will be eliminated as of 2017.
    – Since 2016, individuals subject to a marginal tax rate of 33% benefit from an enhanced tax credit for charitable donations.

    Quebec

    – A temporary tax credit is offered for eco-friendly home renovation.
    – The tax shield is effective in 2016 and its base is broadened.
    – Since April 1, 2016, a new supplement is added to the child assistance payment for handicapped children with exceptional care needs.
    – The tax credit for charitable donations is increased for 2016 and 2017.

  • Section 3 - Education

    – For federal purposes, the education and textbook tax credits will be eliminated as of 2017.
    – In Ontario, the education and tuition tax credits will be eliminated for courses starting after September 4, 2017.

  • Section 4 - Health, Seniors and Caregivers

    – A new federal tax credit for home accessibility for seniors and persons with disabilities is effective since 2016.
    – Since 2016, in Quebec, the age required to be eligible for the age amount tax credit has gradually increased, and will reach 70 years in 2020.
    – Since 2016, in Quebec, some seniors may be compensated for the increase in municipal taxes resulting from a significant review of the assessment roll.
    – The Ontario healthy homes renovation tax credit will be eliminated as of January 1, 2017.

  • Section 5 - Employees

    – Since 2016, a new federal school supply tax credit is available for teachers and early childhood educators.
    – The eligibility age for the tax credit for experienced workers will be decreased annually, reaching 62 years in 2018 and, since 2016, this tax credit is reducable according to work income.
    – Since 2016, in Quebec, households without children benefit from an enhanced work premium.

  • Section 6 - Businesses

    – In Quebec, forest producers benefit from an income-averaging mechanism for activities in respect of a private forest.

  • Section 7 - Investments

    – Since January 1, 2016, the annual ceiling for contributing to the TFSA is $5,500.
    – The gradual adjustment to taxation parameters for eligible dividends planned for 2017 and subsequent years has been cancelled such that the federal tax credit rate and rate of increase applicable to these dividends remains unchanged after 2016.
    – In New Brunswick, the credit rate applicable to ordinary dividends has been progressively reduced in 2016 and 2017 while the credit rate applicable to eligible dividends has progressively increased in 2016 and 2017.
    – In Ontario, the tax credit rate for ordinary dividends was reduced as of January 1, 2016.

    Federal

    – The federal mineral exploration tax credit for flow-through shares has been extended.
    – Since 2016, the tax credit for a labour-sponsored venture capital corporation has been re-established to a 15% rate.

    Quebec

    – The increased credit rate for acquiring Fondaction shares will be maintained until June 2018.
    – The tax credit rate relating to the purchase of Capital régional et coopératif Desjardins shares has been reduced for shares acquired after February 29, 2016.
    – Since 2016, owners of rental buildings must provide an RL-31 slip for tenants who are present as at December 31.

  • Section 8 - Retirement Assistance Programs

    – The process for enrolling in the Ontario Retirement Pension Plan should begin in January 2017 and the first contributions should be collected starting in 2018.

  • Section 12 - Social Programs and Benefits

    – A lower HSF contribution rate applies to all SMEs as of 2017.
    – The gradual reduction of the Quebec health contribution has been sped up given that it will be abolished in 2018.