OTTAWA – Some of the Liberal government’s marquee tax changes take effect today and your paycheque could be affected.
Starting today, the income tax rate for those earning between about 45- and 90-thousand dollars annually drops to 20.5 per cent, from 22.
If you’re earning the maximum, that means a savings of about 650 dollars a year.
The news isn’t as good for Canada’s highest earners.
The tax rate on all income above 200-thousand dollars will tick up four percentage points, to 33 per cent.
And if you have a Tax Free Savings Account, your annual contribution limit has been sliced nearly in half, to 55-hundred dollars.
The tax changes will siphon about 1.2 billion dollars annually from the treasury over the next five years.
The Liberals had estimated the combined fiscal impacts of the tax-rate hike and reduction would basically offset each other.