Tax Brackets and Personal Amounts Will Increase in 2014

Increases to tax bracket thresholds, amounts relating to non-refundable credits, and most other amounts will take effect on January 1, 2014 based on an indexation increase of 0.9%, CRA has announced.

The Basic Personal Amount will rise to $11,138 and the top of the lowest federal tax bracket (15% rate) will rise to $43,953. The top federal tax bracket, to which a 29% tax rate applies, will be pegged at $136,270.

Increases to the Canada child tax benefit (including the national child benefit supplement and the child disability benefit) and the goods and services tax credit will take effect on July 1, 2014, to coincide with the beginning of the program year for payment of these benefits.

Personal tax indexation, clawbacks, and optimization planning for families will be the subject of the Personal Tax Bootcamp being held in January 2014 in Winnipeg, Toronto, Calgary, and Vancouver.

Knowledge Bureau is pleased to announce its 2014 Income Tax Estimator is now available for year end tax planning purposes. Click here for a free trial and subscription information.