2016 tax rates
The following is important information concerning 2016 tax rates.
Canada Pension Plan
Maximum Pension Earnings $54,900.00
Yearly Basic Exemption $3,500.00
Maximum Contributory Earnings $51,400.00
Contribution rate $4.95%
Maximum Contribution $2,544.30
Employment Insurance
Maximum Insurable Earnings $50,800.00
Contribution Rate 1.88%
Maximum Contribution $955.04
Basic Tax Exemptions for 2016
Federal $11,474
NL Tax $8,802
New for 2016
The following are the new Federal personal income tax brackets effective Jan. 1, 2016 as announced by the Federal Government. These tax rates apply to a combined amount from all sources of income.
Annual Taxable Amount Tax Rate Effective Jan. 1, 2016
Up to $45,282 15% (no change from 2015)
Between $45,282 and $90,563 20.5% (reduced from 22%)
Between $90,563 and $140,388 26% (no change)
Between $140,388 and $200,000 29% (no change)
Over $200,000 33% (new tax bracket and rate)
If you have any questions regarding how these tax changes will impact you, please consult a tax advisor.