How Will The New Tax Rates Affect You?

The Liberal government has introduced new federal marginal tax rates for 2016.

The tax rate has been reduced from 22.0% to 20.5% for the “middle class” income tax bracket representing income between $45,282 and $90,564.

A new 33.0% tax rate has been added for people who earn more than $200,000 each year.

Scroll down to the calculator below and see how the new tax rates affect you.

See also: 2016 Canadian Budget Infographic

tax-rates
See also: New Tax Rates Calculator (All Provinces)


Assumptions
Calculations use marginal tax rates as of June 2015 and January 2016. Rates take all federal and provincial taxes and surtaxes into account and the basic personal tax credit. The Average Tax Rate is calculated by dividing Taxes into Taxable Income and represents the percentage of your income paid in taxes.

Disclaimer
This calculator is for illustration purposes only. You should not rely on the results as an indication of your actual tax liability and we recommend that you seek out your own  financial, investment, tax, legal or accounting advice.

See also: New Tax Rates Calculator (All Provinces)