Tax Brackets and Personal Amounts Will Increase in 2014
Increases to tax bracket thresholds, amounts relating to non-refundable credits, and most other amounts will take effect on January 1, 2014 based on an indexation increase of 0.9%, CRA has announced.
The Basic Personal Amount will rise to $11,138 and the top of the lowest federal tax bracket (15% rate) will rise to $43,953. The top federal tax bracket, to which a 29% tax rate applies, will be pegged at $136,270.
Increases to the Canada child tax benefit (including the national child benefit supplement and the child disability benefit) and the goods and services tax credit will take effect on July 1, 2014, to coincide with the beginning of the program year for payment of these benefits.