Welcome to 2013 and a new, indexed set of tax numbers.
Each year, nearly all personal income tax and benefit amounts are indexed to inflation, effective January 1. Some increases, however, such as increases to the Canada child tax benefit and the GST/HST credit only take effect on July 1, which coincides with the start of the program year for payment of these benefits. That’s because these benefits are income-tested based on the prior year’s net income as reported on your tax return, which is generally assessed by that date.
The indexation increase for 2013 is 2%. Here are some of the new numbers for this year:
2013 federal tax brackets
We have four federal tax brackets: zero to $43,561 (15%), $43,561 to $87,123 (22%), $87,123 to $135,054 (26%), with anything above that being taxed at 29%.
Each province (other than Alberta which has a 10% flat provincial tax) also has its own set of provincial tax brackets, which have been also been indexed to inflation, but at the appropriate provincial indexation factors.
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