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’d fall, you need to consider your Taxable Income and match that up with appropriate marginal Tax bracket.
NOTE:The Tax data used comprise the combined Federal & Provincial Tax brackets and Rates. This does not comprise any federal changes that could be introduced in 2016.
Accountable Business Services (ABS) ABSPROF a leading Accounting and Tax Services is providing the comparison of latest and previous Personal Income Tax (T1) Rate for Alberta.
| 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 due come April!
For your employees, you may need to communicate why you’re deducting additional Tax. This post is entailed to articulate that you are deducting the full -rate Tax from pay cheques from October 1, 2015 which will be comparatively 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 deducted by the employer.
If you are looking for Accounting and Tax expert, than Accountable Business Services (ABS) ABSPROF is the right firm for you. We are the leading Accounting and Tax Firm in Alberta offers Services in Edmonton, Calgary, Red Deer, St Albert, Strathcona County, Lethbridge, Medicine Hat, Fort Mcmurray, Grande Prairie, Airdrie, Banff Canmore, Lloydminster and all over Canada on a very affordable rates.
For you Accounting and Tax related matters we are the pocket friendly Firm in Alberta. Feel free to Contact Us on our Toll Free Number: 1 (888) 556-7864
Contact Details
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Local # 780-850-4786, 403-478-6441
Toll Free: 1 (888) 556-7864
Fax Number: 780-669-7960
E-Mail: info@absprof.com
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