“There are no dramatic income tax changes on the federal side,” said CTF Federal Director Aaron Wudrick. “Canadians can for the most part breathe easy, but they shouldn’t expect to have much more money in their pockets.”
As part of its annual New Year’s Tax Changes report, the CTF has calculated the tax impact for families for 2018 for 44 hypothetical Canadian households. Some highlights include:
- A two-child, single-income family in Ontario earning $60,000 per year will have no change in income taxes but will receive $65 less in CCB payments due to inflation.
- A two-child, two-income family in British Columbia earning $80,000 per year will pay $890 less in taxes and receive $88 less in CCB payments, while the same family in Newfoundland will pay $86 more in taxes and receive $150 less in CCB payments.
- A single person in Saskatchewan earning $100,000 will see a tax cut of $212.
- All families in Quebec with children will receive a payment of $100 per child aged 6 to 17, for the purposes of assisting with back to school costs.
Wudrick noted that while 2018 did not hold many large tax changes, Canadians can expect further changes in 2019.
“The Trudeau government has delayed imposing its national carbon tax until 2019, and Canada Pension Plan premiums will begin to rise annually as well,” said Wudrick. “There is still considerable uncertainty on the business tax front, both with respect to the Trudeau government’s controversial small business tax proposals, and due to recent dramatic tax cuts south of the border which will impact Canada’s competitiveness.”
CTF calculations for the tax changes that will be occurring on January 1st for 44 different income and family scenarios can be found
here.
