Much has been made about the new 33% tax bracket for high-income earners (those making more than $200,000), but keep in mind that it doesn’t apply to your 2015 taxes. Still, you should start thinking about next year. While big earners could end up owing more in 2016, Doug Carroll, vice-president of tax and estate planning at Invesco Canada, notes that with the 2016 rate falling by 1.5% for the $45,000 to $90,000 income range, you can clear $216,000 before you pay more. So make sure you’re planning with the right numbers.
The bottom line: Hefty paycheque? Talk to your accountant to see how to avoid paying more to the tax man next year.
More tax tips here.