Individual Taxation Tax Planning Guide

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2 Taxable Income TABLE I1 ONTARIO (2014) TAX TABLE Tax Effective Marginal Rate Federal Ontario Total Rate Federal Ontario Total $ $ $ $ 10, , , , , , , , , , ,000 1, , ,000 1, , ,000 1, , ,000 1, , ,000 1, , ,000 1, , ,000 1, , ,000 2, , ,000 2, , ,000 2, , ,000 2, , ,000 2, , ,000 2,829 1,027 3, ,000 2,979 1,077 4, ,000 3,129 1,128 4, ,000 3,279 1,178 4, ,000 3,429 1,229 4, ,000 3,579 1,279 4, ,000 3,729 1,330 5, ,000 3,879 1,380 5, ,000 4,029 1,431 5, ,000 4,179 1,481 5, ,000 4,329 1,532 5, ,000 4,479 1,618 6, ,000 4,629 1,710 6, ,000 4,779 1,801 6, ,000 4,933 1,893 6, ,000 5,153 1,984 7, ,000 5,373 2,076 7, ,000 5,593 2,167 7, ,000 5,813 2,259 8, ,000 6,033 2,350 8, ,000 6,253 2,442 8, ,000 6,473 2,533 9, ,000 6,693 2,625 9, ,000 6,913 2,716 9, ,000 7,133 2,808 9, ,000 7,353 2,899 10, ,000 7,573 2,991 10, ,000 7,793 3,082 10, ,000 8,013 3,174 11, ,000 8,233 3,265 11, ,000 8,453 3,357 11, ,000 8,673 3,448 12,

3 Taxable Income TAX TABLE Tax Effective Marginal Rate Federal Ontario Total Rate Federal Ontario Total $ $ $ $ 62,000 8,893 3,540 12, ,000 9,113 3,631 12, ,000 9,333 3,723 13, ,000 9,553 3,814 13, ,000 9,773 3,906 13, ,000 9,993 3,997 13, ,000 10,213 4,089 14, ,000 10,433 4,180 14, ,000 10,653 4,272 14, ,000 10,873 4,370 15, ,000 11,093 4,479 15, ,000 11,313 4,589 15, ,000 11,533 4,699 16, ,000 11,753 4,809 16, ,000 12,853 5,358 18, ,000 13,953 6,092 20, ,000 15,136 6,963 22, ,000 16,436 7,833 24, ,000 17,736 8,704 26, ,000 19,036 9,574 28, ,000 20,336 10,445 30, ,000 21,636 11,315 32, ,000 22,936 12,186 35, ,000 24,236 13,056 37, ,000 25,536 13,927 39, ,000 28,248 15,668 43, ,000 31,148 17,409 48, ,000 34,048 19,306 53, ,000 36,948 21,203 58, ,000 39,848 23,100 62, ,000 42,748 24,997 67, ,000 45,648 26,893 72, ,000 60,148 36,846 96, ,000 74,648 47, , ,000 89,148 57, , , ,648 67, , Marginal rate applies on each dollar of additional income. Federal 1) Basic personal credit of $1,671. 2) Indexation rate of 0.9. Ontario 1) This table takes into account the 20 surtax on tax over $4,331 and additional 36 surtax on tax over $5,543. 2) This table does not take into account the low income tax reduction. 3) Basic personal credit of $488. 4) Indexation rate of 1.

4 TABLE I2 NON-REFUNDABLE TAX CREDITS (2014) Federal (15) Ontario (5.05) $ $ Basic 11,138 9,670 Spouse and eligible dependent 11,138 1, 2 8,211 3 Dependent child under 18 years of age 2,255 2 n/a Full-time / Part-time post-secondary studies: Education amount (per month) Textbook amount (per month) 400 / / / 156 n/a Disabled dependent aged 18 and older 6, ,558 5 Fitness for children (- 16 years of age) n/a 7 Artistic, cultural and recreational activities for children under (- 16 years of age) n/a 7 Employment amount 1,127 8 n/a Public transit passes Cost 9 n/a Age amount 6, , Retirement income 2,000 1,337 Person suffering from a disability Supplement (less than 18 years of age) 7,766 7,812 4, , Caregiver 4,530 2, 14 4, Adoption fees 15, ,797 6 Volunteer firefighters 3,000 n/a Search and rescue volunteer 3,000 n/a Purchase of first home 5,000 n/a Reduced by net income of spouse or dependent. Potential $2,058 additional amount if eligible for family caregiver credit. Reduced for each $1 exceeding $821 (nil at $9,032). Reduced for each $1 exceeding $6,607 (nil at $13,196). Reduced for each $1 exceeding $6,478 (nil at $11,036). Maximum amount of expenses eligible for the credit. Refundable tax credit available in Ontario. Amount equal to taxpayer s employment income for the year (max. $1,127). Cost of public transit passes valid for at least one month. Reduced by 15 for each $1 exceeding $34,873 (nil at $80,980). Reduced by 15 for each $1 exceeding $35,146 (nil at $66,620). Reduced by child care and caregiver expenses exceeding $2,654 (nil at $7,184). Reduced by child care and caregiver expenses exceeding $2,668 (nil at $7,225). Reduced for each $1 exceeding $15,472 (nil at $20,002). Reduced for each $1 exceeding $15,593 (nil at $20,150).

5 TABLE I2 NON-REFUNDABLE TAX CREDITS (2014) (CONTINUED) Federal Ontario Medical expenses 15 of expenses which exceed the lesser of $2,171 or 3 of applicant s net income No limit 5.05 of expenses which exceed the lesser of $2,188 or 3 of applicant s net income Maximum medical expenses for dependent of $11,797 Charitable donations Max. donations: 75 of net income 15 on the first $200 and 29 on excess amount Additional 25 credit for first-time donation not exceeding $1,000 Max. donations: 75 of net income 5.05 on the first $200 and on excess amount Tax Brackets TABLE I3 MARGINAL RATES (2014) Other Income ONTARIO Capital Gain Eligible 2 Dividends 1 Ordinary 3 $12,000 $40, $40,121 $43, $43,954 $70, $70,596 $80, $80,243 $83, $83,194 $87, $87,908 $136, $136,271 $150, $150,001 $220, $220,001 and over ALL PROVINCES Federal For all provinces, except Québec Québec only Provincial 4 Alberta British Columbia Manitoba New Brunswick Newfoundland and Labrador Northwest Territories Nova Scotia Nunavut Ontario Prince Edward Island Quebec Saskatchewan Yukon Rates applicable to actual dividends received (not grossed-up). 38 gross-up. 25 gross-up since January 1, 2014 (25 before that date). Combined rates, federal and provincial. Since July 1, 2014.

6 TABLE I4 TAX BRACKETS FEDERAL 2014 $43,953 or less 15 $43,954 $87,907 $6, on next $43,954 $87,908 $136,270 $16, on next $48,363 $136,271 and over $28, on excess 15 rate used for AMT. Indexation rate of 0.9 for ONTARIO 2014 $40,120 or less 5.05 $40,121 $80,242 $2, on next $40,122 $80,243 $150,000 1 $5, on next $69,758 $150,001 $220,000 1 $13, on next $70,000 $220,001 and over 1 $21, on excess AMT of of federal AMT. 20 surtax on tax over $4,331 and additional 36 surtax on tax over $5,543. Indexation rate of 1 for TAX CREDIT FOR DIVIDENDS FROM CANADIAN CORPORATIONS Eligible Dividends 3 Ordinary Dividends 4 Federal Ontario Since January 1, 2014 (11.16 in 2013 for income between $79,499 and $509,000; on excess income). Rates applicable to grossed-up dividends. 38 gross-up. 25 gross-up since January 1, 2014 (25 before that date). Since January 1, 2014 (13.33 before that date). Since January 1, 2014 surtax applies before the dividend tax credits. Since January 1, 2014 (6.4 before that date).

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