PERSONAL
TAXATION FAMILY TAXES
Individuals are taxed on a graduated income tax amount set by the federal and provincial government Top marginal tax rate varies from 39% to 50% based on each province
Combined federal and provincial personal
INCOME TAX RATES INCOME
RATE ON EXCESS
$ – to $ 11,138 11,139 to 14,086 14,087 to 18,502 18,503 to 40,120 40,121 to 43,953 43,954 to 70,648 70,649 to 80,242 80,243 to 83,236 83,237 to 87,907 87,908 to 136,270 136,271 to 150,000 150,001 to 220,000 220,001 and up
0.00% 15.00% 25.10% 20.05% 24.15% 31.15% 32.98% 35.39% 39.41% 43.41% 46.41% 47.97% 49.53%
ELIGIBLE DIVIDEND 0.00% 0.00% 0.00% 0.00% 0.00% 9.63% 10.99% 14.31% 19.86% 25.38% 29.52% 31.67% 33.82%
2014
OTHER
CAPITAL
DIVIDEND
GAINS
0.00% 4.70% 6.00% 5.35% 10.19% 18.45% 20.61% 23.45% 28.19% 32.91% 36.45% 38.29% 40.13%
0.00% 7.50% 12.55% 10.03% 12.08% 15.58% 16.49% 17.70% 19.70% 21.70% 23.20% 23.98% 24.76%
INCOME SPLITTING TIPS FOR YOU TO CONSIDER
Between spouse and partner have the higher income earner incur the living expenses to save Contribute into the spousal RRSP who is in the lower tax bracket Share your CPP/QPP retirement pension payments with your spouse Lend funds for investment purposes to the lower-income spouse or partner or using a formal trust to minor children at the prescribed rate. Transfer property to a spouse or partner or your children so they’ll be taxed on the eventual income on income Transfer property or lend funds to your children so they can earn capital gains Deposit child tax benefit payments into your child’s bank account Contribute to RESP upto $2,500 per child per year which gets you $500 grant per child Contribute to TFSA and earn income tax free in yours or spouses account Make gifts to your children over 18 for RRSP and TFSA purposes 15
