New Government, New Tax Changes. Here’s What You Need to Know About Tax in 2017.

Personal tax rates have changed. The tax rate on income between $45,282 and $90,563 has dropped to 20.5 per cent from 22 per cent. Conversely, on income over $200,000, the rate has increased to 33 per cent from 29 percent.

TFSA contribution limits are lower. The TFSA contribution limit has dropped back to $5,500 in 2016 from $10,000 in 2015,  If you have not maxed out your contributions every year since TFSAs were introduced, you may have up to $46,500 in contribution room.

Donation credits have changed. For those earning over $200,000, there’s now a 33 per cent donation credit rate – up from 29 per cent. According to Deloitte, “for any donations made in excess of $200 where the individual’s taxable income is less than $200,000, a 29 per cent credit will continue to apply.” That’s good news for higher-net-worth individuals: “

A new child benefit. The Trudeau government replaced the Child Tax Credit, the Universal Child Care Benefit and the Canada Child Tax Benefit with a new Canada Child Benefit that better helps families with lower net. The Children’s Fitness Tax Credit and Children’s Arts Tax Credit, worth up to $150 and $75 per child, respectively, are also being cut in half in 2016 and then eliminated

Eligible capital property will be taxed differently. Capital gains are taxed in a corporation at essentially the same rate an individual is taxed at, says Mr. Cameron. In the 2016 federal budget, the government introduced changes to the way eligible capital property is taxed in a corporation.

The beginning of the year is a good time to look at  the impact of these changes and start planning now.

—Jackie Porter (@askjackieporter)