Saturday, November 7, 2009, 3:47PM ET - Canadian Markets Closed.
The following summary shows the various tax changes from the Federal and provincial budgets that will affect your 2007 tax return. Click on Federal for the changes that will impact all Canadians and on your province of residence as of December 31, 2007 for those that relate to your province only.
Federal
Newfoundland and Labrador
Prince Edward Island
Nova Scotia
New Brunswick
Quebec
Ontario
Manitoba
Saskatchewan
Alberta
British Columbia
Yukon
Northwest Territories
Nunavut
Federal
• The new tax rates and income brackets as shown on Schedule 1 are as follows:
• The personal basic amount is increased to $9,600.
• The age amount is increased to $5,177.
• The spousal amount and the amount for an eligible dependant are increased to $9,600.
• The maximum amount for an infirm dependant age 18 or older is increased to $4,019 per dependant.
• The maximum eligible earnings for CPP/QPP purposes is $43,700. The rate respecting CPP/QPP contributions is 4.95%.
• The maximum amount of eligible earnings for employment insurance purposes is $40,000. The employment insurance rate is now 1.8%.
• The maximum amount of eligible adoption expenses is increased to $10,445.
• The pension income amount remains unchanged at $2,000.
• The maximum amount eligible for the calculation of the caregiver amount is $4,019 per dependant.
• The disability amount is increased to $6,890, and may be increased by a maximum supplement of $4,019 (workchart 316).
• The maximum amount (3% of net income) deducted to calculate allowable medical expenses is increased to $1,926.
• The maximum amount for the new Canada employment non-refundable tax credit is increased to $1,000.
• A new $2,000-per-child tax credit for children under 18.
• A new tax credit in respect of up to $500 in eligible fees for the enrolment of a child under the age of sixteen years in an eligible program of physical activity.
• The education amount for part-time studies and the textbook amount remain unchanged at $120 and $20 per month.
• The education amount for full-time studies and the textbook amount remain unchanged at $400 and $65 per month.
• The maximum amount for the refundable medical expenses supplement (line 452) has been increased to $1,022.
• Eligible dividends are taxable at 145% with a federal dividend tax credit of 18.9655%. Dividends other than eligible dividends are taxable at 125% with a federal dividend tax credit of 13.3333%.
Newfoundland and Labrador
The new tax brackets and rates and the surtax are as follows:
• The personal basic amount is increased to $7,484.
• The age amount is increased to $3,517.
• The spousal amount and the amount for an eligible dependant are increased to $6,116.
• The maximum amount for an infirm dependant age 18 or older is increased to $2,377 per dependant.
• The amount of adoption expenses that can be claimed remains unchanged at $10,000.
• The maximum amount eligible for the calculation of the caregiver amount is increased to $2,377 per dependant.
• The disability amount is increased to $5,050, and may be increased by a maximum supplement of $2,377.
• The maximum amount (3% of net income) deducted to calculate allowable medical expenses remains unchanged at $1,630.
• The dividend tax credit for eligible dividends is set at 6.65%. The dividend tax credit for dividends other than eligible dividends is set at 5%.
Prince Edward Island
The new tax brackets and rates and the surtax are as follows:
• The personal basic amount is increased to $7,560.
• The age amount is increased to $3,691.
• The spousal amount and the amount for an eligible dependant are increased to $6,420.
• The maximum amount for an infirm dependant age 18 or older remains unchanged at $2,446 per dependant.
• The maximum amount eligible for the calculation of the caregiver amount remains unchanged at $2,446 per dependant.
• The disability amount remains unchanged at $6,890, and may be increased by a maximum supplement of $4,019.
• The maximum amount (3% of net income) deducted to calculate allowable medical expenses remains unchanged at $1,678.
• The amount for young children remains unchanged at $100 per month for each child under six years old.
• The dividend tax credit for eligible dividends is set at 10.5%. The dividend tax credit for dividends other than eligible dividends is set at 6.5%.
Nova Scotia
The tax brackets and rates and the surtax remain unchanged:
• The personal basic amount is increased to $7,481.
• The age amount is increased to $3,653.
• The spousal amount and the amount for an eligible dependant are increased to $6,352.
• The maximum amount for an infirm dependant age 18 or older is increased to $2,468 per dependant.
• The maximum amount eligible for the calculation of the caregiver amount is increased to $4,320 per dependant.
• The disability amount is increased to $4,441, and may be increased by a maximum supplement of $3,043.
• The maximum amount (3% of net income) deducted to calculate medical expenses is increased to $1,637.
• The tax credit for sport and recreational expenses for children is increased to $500.
• The amount for young children remains unchanged at $100 per month for each child under six years old.
• The dividend tax credit for eligible dividends is set at 8.85%.
• The dividend tax credit for dividends other than eligible dividends is set at 7.7%.
New Brunswick
The new tax rates and income brackets are as follows:
• The personal basic amount is increased to $8,239.
• The age amount is increased to $4,023.
• The spousal amount and the amount for an eligible dependant are increased to $6,996.
• The maximum amount for an infirm dependant age 18 or older is increased to $3,891 per dependant.
• The caregiver amount is increased to $3,891.
• The disability supplement is increased to $3,891.
• The disability amount and the amount transferred from a disabled person are increased to $6,670.
• The maximum amount (3% of net income) deducted to calculate allowable medical expenses is increased to $1,864.
• The dividend tax credit for eligible dividends is set at 12%.
• The dividend tax credit for dividends other than eligible dividends is set at 5.3%.
Quebec
The tax rates are unchanged but apply to new income brackets as follows:
• The basic amount is increased to $9,745.
• An additional complementary amount (line 356) is calculated if the total amount of Québec Pension Plan (QPP) contributions, Canada Pension Plan (CPP) contributions, Québec parental insurance plan (QPIP) premiums, employment insurance premiums, and contributions to the health services fund is higher than the complementary amount of $3,095.
• The amount for persons living alone is increased to $1,180.
• The amount for post-secondary studies is increased to $3,720.
• The amount for dependent child is increased to $2,705.
• The amount for a single-parent family is increased to $1,465.
The maximum amount of employment insurance premiums is $584.
• The maximum amount of Quebec parental insurance plan premiums is $245.44.
• The medical expenses tax credit has been increased to $1,020.
• The maximum contribution to the Quebec prescription drug insurance plan (Schedule K) for 2007 is increased to $547.50.
• The income threshold used in the calculation of the tax credit respecting the work premium (Schedule P) is increased to $14,982 for an individual with a spouse and $9,758 for an individual without a spouse.
• Dividends received before March 24, 2006, remain unchanged and will be taxable at 125% with a Quebec dividend tax credit of 10.83%. Dividends other than eligible dividends received after March 23, 2006, will be taxable at 125% with a Quebec dividend tax credit of 8%. Eligible dividends received after March 23, 2006, will be taxable at 145% with a Quebec dividend tax credit of 11.9%.
• The maximum amount for the new general deduction for workers is increased to $1,000.
Ontario
The tax rates are unchanged but apply to new income brackets and the new surtax as follows:
• The personal basic amount is increased to $8,553.
• The age amount is increased to $4,176.
• The spousal amount, the amount for an eligible dependant and the amount for an infirm dependant (age 18 or older) are increased to $7,262.
• The maximum amount for retirement income is increased to $1,183.
• The caregiver amount is increased to $4,031.
• The disability amount is increased to $6,910.
• The disability supplement is increased to $4,031.
• The maximum amount that can be deducted from medical expenses is increased to $1,936.
• The maximum Ontario Health Premium remains unchanged at $900.
• The maximum amount of eligible expenses related to the adoption of a child under 18 years of age has been increased to $10,435 per child.
• The maximum amount of allowable medical expenses for other dependants has been increased to $10,435.
• The dividend tax credit for eligible dividends is increased to 6.7%. The dividend tax credit for dividends other than eligible dividends remains unchanged at 5.13%.
Manitoba
New tax rates apply to unchanged income brackets as follows:
• The personal basic amount is increased to $7,834.
• The age amount remains unchanged at $3,728.
• The spousal amount and the amount for an eligible dependant remain unchanged at $6,482.
• The maximum amount for an infirm dependant age 18 or older remains unchanged at $3,605 per dependant.
• The maximum amount of allowable medical expenses for other dependants remains unchanged at $10,000.
• The caregiver amount remains unchanged at $3,605.
• The disability supplement remains unchanged at $3,605.
• The disability amount and the amount transferred from a disabled person remain unchanged at $6,180.
• The maximum amount (3% of net income) deducted to calculate allowable medical expenses remains unchanged at $1,728.
• The maximum amount of eligible expenses related to the adoption of a child under 18 years of age remains unchanged at $10,000 per child.
• The dividend tax credit for eligible dividends is set at 11%.
• The dividend tax credit for dividends other than eligible dividends is set at 3.67%.
Saskatchewan
The tax rates unchanged but apply to new income brackets as follows:
• The personal basic amount is increased to $8,778.
• The age amount is increased to $4,156.
• The maximum amount for an infirm dependant age 18 or older is increased to $4,019 per dependant.
• The maximum amount of allowable medical expenses for other dependants remains unchanged at $10,000.
• The caregiver amount and the disability supplement are increased to $4,019.
• The disability amount and the amount transferred from a disabled person are increased to $6,890.
• The maximum amount (3% of net income) deducted to calculate allowable medical expenses is increased to $1,926.
• The child amount is increased to $2,743 per child.
• The senior supplementary amount is increased to $1,097.
• The maximum Saskatchewan post-secondary graduate tax credit is increased to $1,000.
• The dividend tax credit for eligible dividends is set at 11%.
• The dividend tax credit for dividends other than eligible dividends is set at 6%.
Alberta
• The income tax rate remains unchanged at 10%.
• The personal basic amount is increased to $15,435.
• The age amount is increased to $4,301.
• The spousal amount is increased to $15,435.
• The maximum amount for an infirm dependant age 18 or older is increased to $4,160 per dependant.
• The maximum amount for retirement income is $1,189.
• The maximum amount of allowable medical expenses for other dependants has been increased to $10,557.
• The caregiver amount and the disability supplement are increased to $4,160.
• The disability amount and the amount transferred from a disabled person are increased to $7,131.
• The maximum amount (3% of net income) deducted to calculate allowable medical expenses is increased to $1,994.
• The maximum amount of eligible adoption expenses is increased to $10,557.
• The dividend tax credit for eligible dividends is increased to 8%. The dividend tax credit for dividends other than eligible dividends is reduced to 5.5%.
British Columbia
The tax rates are unchanged but apply to new income brackets as follows:
• The personal basic amount is increased to $9,027.
• The age amount is increased to $4,048.
• The spousal amount and the amount for an eligible dependant are increased to $7,729.
• The maximum amount for an infirm dependant age 18 or older is increased to $3,949 per dependant.
• The maximum amount of allowable medical expenses for other dependants remains unchanged at $10,000.
• The caregiver amount is increased to $3,949.
• The disability supplement is increased to $3,950.
• The disability amount and the amount transferred from a disabled person are increased to $6,770.
• A new non-refundable tax credit for British Columbia parents has been introduced. They can claim up to $10,445 in expenses incurred in the adoption of a child less than 18 years of age.
• The maximum amount (3% of net income) deducted to calculate allowable medical expenses is increased to $1,877.
• The basic reduction amount is increased to $375.
• The dividend tax credit for eligible dividends is set at 12%.
• The dividend tax credit for dividends other than eligible dividends is set at 5.1%.
Yukon
The unchanged tax rates and new brackets and the surtax are:
• The personal basic amount is increased to $9,600.
• The age amount is increased to $5,177.
• The spousal amount and the amount for an eligible dependant are increased to $9,600.
• The maximum amount for an infirm dependant age 18 or older is increased to $4,019 per dependant.
• The pension income amount remains unchanged at $2,000.
• The maximum amount of allowable medical expenses for other dependants remains unchanged at $10,000.
• The caregiver amount is increased to $4,019.
• The disability supplement is increased to $4,019.
• The disability amount and the amount transferred from a disabled person are increased to $6,890.
• The maximum amount (3% of net income) deducted to calculate allowable medical expenses is increased to $1,926.
• The dividend tax credit for eligible dividends is set at 11%.
• The dividend tax credit for dividends other than eligible dividends is set at 4.45%.
Northwest Territories
The new tax brackets and rates are:
• The personal basic amount is increased to $12,125.
• The age amount is increased to $5,931.
• The spousal amount and the amount for an eligible dependant are increased to $12,125.
• The maximum amount for an infirm dependant age 18 or older is increased to $4,019 per dependant.
• The caregiver amount is increased to $4,019.
• The disability supplement is increased to $4,019.
• The disability amount and the amount transferred from a disabled person are increased to $9,833.
• The maximum amount (3% of net income) deducted to calculate allowable medical expenses is increased to $1,926.
• The dividend tax credit for eligible dividends is set at 11.5%.
• The dividend tax credit for dividends other than eligible dividends is set at 6%.
Nunavut
The tax rates are unchanged but apply to new income brackets as follows:
• The personal basic amount is increased to $11,149.
• The age amount is increased to $8,361.
• The spousal amount and the amount for an eligible dependant are increased to $11,149.
• The maximum amount for an infirm dependant age 18 or older is increased to $4,019 per dependant.
• The caregiver amount is increased to $4,019.
• The disability supplement is increased to $4,019.
• The disability amount and the amount transferred from a disabled person are increased to $11,149.
• The maximum amount (3% of net income) deducted to calculate allowable medical expenses is increased to $1,926.
• The amount for young children is increased to $1,200 for each child less than six years old of age.
• The dividend tax credit for eligible dividends is set at 6.2%.
• The dividend tax credit for dividends other than eligible dividends is set at 4%.
Copyright Dr Tax-UFile.ca 2008
Rates provided by 
| Mortgages Type | Rate |
|---|---|
| 1-yr Closed | 3.59% |
| 3-yr Closed | 4.22% |
| 5-yr Closed | 5.07% |
| GICs Type | Rate |
|---|---|
| 1-yr Annual | 0.98% |
| 3-yr Annual | 2.16% |
| 5-yr Annual | 2.80% |
| RRSP Type | Rate |
|---|---|
| 1-yr | 0.97% |
| 3-yr | 2.13% |
| 5-yr | 2.78% |
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