Posts

Increases to Climate Action Tax Credits

Gradual increases are planned for the provincial Climate Action Tax Credit for eligible taxpayers.

In July of this year, the maximum amount of the annual credit was increased to $155 per adult from $135. This will increase to $174 per adult in July 2020, and $194 per adult in July 2021.

The annual credit per child increased to $46 from $40 on July 1, and will increase to $51 per child in July 2020, and $57 per child in July 2021.

These credits are primarily targeted at helping low income families. Most of these families will receive dill credit if their qualifying income is less that $40,689.

TAXES RAISED FOR HIGHEST EARNERS IN ONTARIO

A recent global trend in taxation has been to increase the tax rates of the highest income earners.

An addition more localized trend has been for the BC government to change provincial tax rates soon after similar changes in Ontario.

Recently, the BC Ministry of Finance added a temporary tax bracket for people who earn over $150,000, at 45.8%. This was announced soon after the Ontario government introduced their own tax for high income earners, at 49.53% for income above $514.090.

This summer, the Ontario government again increased taxes at the highest bracket. The top tax bracket of 49.53% now starts at $220,000, instead of $514,090. In addition, a new tax bracket was created for taxable income between $150,000 and $220,000, to be taxed at 47.97% up from 46.41%.

It will be interesting to see if the BC government does the same with their own tax rates in the coming years.