Canada Announces Proposed Cut in the 22% Personal Income Tax Rate to 20.5% and New Top Rate

On 7 December 2015, the Canadian Department of Finance announced a government proposal to cut the federal personal income tax rate for the second bracket from 22% to 20.5%. The cut would be offset with the introduction of a new top bracket with a 33% rate for income over CAD 200,000, which will be adjusted for inflation. As proposed, the brackets and rates for 2016 would be as follows:

• up to CAD 45,282 - 15%
• over CAD 45,282 up to 90,563 - 20.5%
• over CAD 90,563 up to 140,388 - 26%
• over CAD 14…