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Press Releases/News
Personal Amounts and Personal Income Tax Brackets May 2009 FOR IMMEDIATE RELEASE Personal Amounts and Personal Income Tax Brackets How will the basic personal amount, the spouse or common-law partner amount, and the amount for an eligible dependant change? How have the personal income tax brackets changed for 2009? Will the income tax withheld from my paycheque be reduced by the changes to the basic personal amount and tax brackets proposed for 2009? How can I take advantage of the change to the maximum spouse or common-law partner amount and the maximum amount for an eligible dependant? Will the changes to the taxable income thresholds affect the Canada Child Tax Benefit (CCTB), the Child Disability Benefit (CDB), and the National Child Benefit (NCB) Supplement? -------------------------------------------------------------------------------- 1. How will the basic personal amount, the spouse or common-law partner amount, and the amount for an eligible dependant change? For 2009, the budget proposes to increase the basic personal amount, the maximum spouse or common-law partner amount, and the maximum amount for an eligible dependant from $10,100 to $10,320 (indexed after 2009). 2. How have the personal income tax brackets changed for 2009? For 2009, the budget proposes to increase the upper taxable income threshold of the 15% tax bracket from $38,832 to $40,726. You will be taxed at the higher rate of 22% only when your taxable income exceeds $40,726. Further more, the upper taxable income threshold of the 22% bracket will be increased from $77,664 to $81,452. You will be taxed at the higher rate of 26% only when your taxable income exceeds $81,452. The 29% bracket will continue to begin at $126,264. 3. Will the income tax withheld from my paycheque be reduced by the changes to the basic personal amount and tax brackets proposed for 2009? Yes. The Canada Revenue Agency will be issuing revised payroll tables to employers by April 1, 2009, to reflect the tax reductions resulting from the increase to the basic personal amount and the changes to the tax brackets. The revised tables will be adjusted so that the amount of the reduction in tax withheld over the remaining nine months of 2009 will be the same as if these measures had been in place for the entire year. 4. How can I take advantage of the change to the maximum spouse or common-law partner amount and the maximum amount for an eligible dependant? If you are eligible for the spouse or common-law partner amount or the amount for an eligible dependant, you may arrange for a reduction in tax withheld by filing the federal TD1 form with your employer. For more information, please see: Filing Form TD1, Personal Tax Credits Return. 5. Will the changes to the taxable income thresholds affect the Canada Child Tax Benefit (CCTB), the Child Disability Benefit (CDB), and the National Child Benefit (NCB) Supplement? Yes. Currently, the family net income threshold at which the CCTB and the CDB begin to be phased-out, and at which the NCB phase-out is complete for most families, is $38,832. For the 2009-2010 benefit year, the budget proposes to increase these thresholds to $40,726 (indexed after 2009). About R.D.M. Financial Consultants A Mortgage Centre franchise since 1990,we boast a staff of 12 Mortgage professionals serving Mississauga, Etobicoke, Burlington, Milton and surrounding areas. With the combined experience of our Mortgage Professionals we are able to deal with almost all mortgage and financing requirements. For more information, please visit us on the web at www.rdmmortgages.com or call us at (905) 337-7375. << Back to Press Releases |
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