Alberta Personal Income Tax Rate Changes:
On October 1, 2015, the Alberta government released new tax rates to be brought in. In 2015, the change results in a pro-rated tax rate applied to all income for the tax year and in 2016 will be the full tax rates. We have prepared a table to illustrate the changes.
To see where you would fall, you need to consider your taxable income and match that up with appropriate marginal tax bracket.
NOTE:The tax information used represent the combined Federal & Provincial tax brackets and rates. This does not represent any federal changes that could be presented in 2016.
| Tax Brackets | 2014 – Rate | 2015 – Rate | 2015 – Extra Tax | 2016 – Rate | 2016 – Extra Tax |
| First $44,701 | 25.00% | 25.00% | $0.00 | 25.00% | $0.00 |
| over $44,701 – $89,401 | 32.00% | 32.00% | $0.00 | 32.00% | $0.00 |
| over $89, 401 – 125,000 | 36.00% | 36.00% | $0.00 | 36.00% | $0.00 |
| over $125,000 – $138,586 | 36.00% | 36.50% | $67.93 | 38.00% | $271.72 |
| over $138,586 – 150,000 | 39.00% | 39.50% | $85.61 | 41.00% | $228.28 |
| over $150,000 – 200,000 | 39.00% | 39.75% | $375.00 | 42.00% | $1,500.00 |
| over $200,000 – $300,000 | 39.00% | 40.00% | $1,000.00 | 43.00% | $4,000.00 |
| over $300,000 | 39.00% | 40.25% | >$1,000.00 | 44.00% | >$4,000.00 |
You may want to consider reviewing your discretionary tax saving vehicles such as RRSP’s and charitable donations in order to defer or reduce your tax owing come April!
For your employees, you may need to communicate why you are deducting additional tax. This post is meant to articulate that you are deducting the full -rate tax from pay cheques from October 1, 2015 which will be relatively close to the weighted average rates for the year. For example, if you have an employee with an income of $165,000, you will be deducting the full rate as if it was 42.00% to “catch-up” on the total tax withheld by the employer.
Are you looking for an accountant to do your Personal Taxes? Give us a call today at
(403) 509-3290 or contact us and we’ll get you set-up as a client!!