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Things Every Tax Payer Should Know
Measures concerning individuals
* The basic personal amount, the spousal and common-law partner amount,
and eligible dependent amount increase from $9,600 in 2008 to $10,320 in 2009;
* The upper limit of the first personal income tax bracket (15% income tax rate)
increases from $37,885 in 2008 to $40,726 in 2009;
* The upper limit of the second personal income tax bracket (22% income tax rate)
increases from $75,769 in 2008 to $81,452 in 2009;
* the increased amounts and bracket thresholds will be indexed to account for
inflation in the 2010 and subsequent tax years.
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A new Home Renovation Tax Credit (HRTC) is being introduced. The HRTC is a 15% non-refundable tax credit for eligible expenditures made in respect of eligible dwellings which would generally be considered to be an individual's principal residence. Eligible expenditures include labour and building materials for a renovation that is of an enduring nature. The HRTC applies to expenditures, in excess of $1,000 but not more than $10,000, made after January 27, 2009 and before February 1, 2010 pursuant to an agreement entered into after January 27, 2009.
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The withdrawal limit under the Home Buyers' Plan increases to $25,000 from $20,000 in respect of withdrawals made after January 27, 2009
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A new First-Time Home Buyers' Tax Credit is being introduced which is based on an amount of $5,000 for first time home buyers who acquire a qualifying home after January 27, 2009. The non-refundable tax credit is calculated by reference to the lowest personal income tax rate for the year. The credit will also be available for certain acquisitions of a home by or for the benefit of an individual who is eligible for the disability tax credit.
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