Category Archives: Taxes

Canadian Marginal Tax Rates – 2017

Canadian Marginal Tax Rates - 2017 OntarioThis post provides the 2017 combined marginal and average tax rates as tables, charts and a downloadable spreadsheet for the Canadian federal government and all the provinces and territories. It now includes some of the hidden taxes that are not shown on the income tax forms rate tables. More

Claiming the RRIF Re-Contribution on your 2015 Tax Return

If you received a 2015 T4RIF form with an amount using the old minimum withdrawal rate and you have re-contributed the difference between it and the new rate, how do you make sure that you only pay taxes on the new withdrawal rate? More

Canadian Marginal Tax Rates – 2016

Canadian Marginal Tax Rates - 2016 OntarioThis post provides the 2016 combined marginal and average tax rates as tables, charts and a downloadable spreadsheet for the Canadian federal government and all the provinces and territories. The Marginal Tax Rate is mentioned a lot when discussing incremental and retirement income. It is defined as the amount of tax paid on an additional dollar of income. It is sometimes difficult to determine this value as it changes by province and using a standard rate without regard to your province of residence can lead to erroneous results if you are not careful. More

Impact of Tax Credits on Average Tax Rate

Impact of Tax Credits on Average Tax RateEach additional dollar you earn is taxed at the marginal tax rate. However, the tax credits to which everyone is entitled significantly reduces the amount of taxes you actually pay compared to the tax bracket values and the marginal tax rates. For example, for income close to the top of the first tax bracket and the basic personal tax credit, the actual average rate is just 72% of the marginal tax rate. More

Estimating Canadian Income Taxes

If you need to estimate your Canadian income taxes during the year before making an investment decision, use the simplified spreadsheet provided in this post. For example, you may have to decide the impact of taking capital gains this year, selling stocks or taking out an RRSP. More

Determining the Elected Split-Pension Amount

The Elected Split-Pension Amount for retired spouses results in a lower combined Canadian income tax if income can be moved from one spouse’s higher tax bracket to the other spouse’s lower tax bracket. Depending on the incomes, this can be a little hard to determine. This post describes how to determine the best splitting for you and your spouse, provides a spreadsheet to help in the analysis and determines the savings. Be careful when using any optimized amount provided by some of the tax preparation software or the maximum amount permitted as it may not be what you want relative to how much each person pays or receives. More

Canadian Marginal Tax Rates – 2014

This post provides the 2014 combined tax rates as tables and charts for the Canadian federal government and all the provinces and territories. The Marginal Tax Rate is mentioned a lot when discussing retirement income. It is defined as the amount of tax paid on an additional dollar of income. It is sometimes difficult to determine this value as it changes by province. This post shows the marginal and average rates for each tax bracket and provides a downloadable spreadsheet which also contains the charts for each province. More