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Before making a major financial decision you
should consult a qualified professional.
Personal income tax changes effective July 1,
2007:
tax rates to be reduced
lowest tax bracket rates from 10.57% to
8.7% (2007 average = 9.64%)
middle tax bracket rates from 16.16% to 13.8% (2007 average
= 14.98%), and
highest tax bracket rates from 18.02% to
16.5% (2007 average = 17.26%)
9% surtax eliminated (resulting in 4.5% surtax for 2007)
personal income tax system will be indexed
to inflation, including tax brackets, tax
credits, and benefits for low-income
families. Indexation will then occur
annually.
effective January 1, 2007, the Low Income Tax
Reduction will be adjusted from $12,000 to $13,000
for individuals and from $19,000 to $21,000 for
families.
Seniors' Benefit for married seniors increased
as a result of adjustments to the income threshold
range.
small business threshold under the corporate
income tax increased from $300,000 to $400,000,
effective for 2007
retail sales tax rate applicable to private sale
of used motor vehicles reduced from 15% to 14%
effective midnight April 26, 2007.
Federal income tax measures affecting taxable
income that automatically affect provincial
taxable income in all provinces and territories
except Quebec:
effective January 1, 2007, eligible pension
income can be split between spouses. See
the article on pension
splitting.
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