What will my tax bill be under the Liberals?

With a majority government in hand, Liberal leader Justin Trudeau has all the political power he needs to implement his party platform unimpeded.

By Staff | October 21, 2015 | Last updated on October 21, 2015

2 min read

With a majority government in hand, Liberal leader Justin Trudeau has all the political power he needs to implement his party platform unimpeded.

Trudeau and his Cabinet will be sworn in on November 4, and it will likely be months before the new government releases its budget or starts passing legislation.

Here’s what you can expect from the Liberals once Parliament gets into full swing:

How will personal tax rates change, if at all?

Rate for taxable income between $44,700 and $89,401 would drop from 22% to 20.5%, for tax savings worth up to $670 a year per person.
Tax rate for income above $200,000 would increase from 33% to 29%. On a $250,000 income, this would mean paying up to $1,329.50 more.

Will any tax credits or deductions change?

The Liberals have promised to:

Replace the Universal Child Care Benefit with the Canada Child Benefit, a tax-free monthly benefit for the middle class. Families would receive up to $6,400 a year per child under six, and up to $5,400 a year per child aged six to 17. The amount would decrease as family income rises. Families with incomes of $200,000 or above wouldn’t get a benefit.
Keep the labour-sponsored venture capital corporation tax credit, which is slated to be phased out. It’s a 15% federal tax credit for investments of up to $5,000 a year into labour-sponsored retirement funds.
Reform EI eligibility and cut premiums.
Create a Teachers School Supply Tax Benefit, a refundable credit worth up to $150 for teachers and educational assistants who buy their own classroom supplies.
Allow Canadians to put RRSP money toward buying a house more than once.
Return TFSA contribution rates to $5,500 from $10,000.