As another year draws to a close, now is a good time to take stock and consider ways to improve your tax position for 2016.
The top federal tax rate has gone up from 29% to 33% and if you are in the top tax bracket, you should bear in mind that while 2016 tax rates are higher than in previous years, the flip side is that tax deductions can be more valuable. Similarly, the value of charitable donation tax credits have also increased for 2016, (see KPMG’s TaxNewsFlash-Canada 2016-48, “Making the Most of Your Charitable Gifts for 2016” [PDF 126 KB] for more about tax savings on donations to charities). If you pay tax at the new top marginal tax rate, you may qualify for a 33% federal charitable donation tax credit—or up to a 54% combined federal and provincial credit, depending on your province of residence.
Download this edition of the TaxNewsFlash to learn more.