With 2010 arriving, we are now under the 2010 tax levels. The following are a few Federal tax numbers you may want to know about:
- Basic Personal Income Exemption Amount of $10,382 (increase of $62)
- Tax rate of 15% from $10,382 to $49,970 (increase of $244)
- Tax rate of 22% from $49,970 to $81,941 (increase of $489)
- Tax rate of 26% from $81,941 to $127,021 (increase of $757)
- Tax rate of 29% on above $127,021
CPP maximum premium increases by $44.55 from last year to $2,163.15 for employer and employee each.
EI maximum premium increases by $15.57 to the employee to $747.36 for 2010, and by $21.79 to the employer to a maximum of $1,046.30.
RRSP contribution room for 2010 is a maximum of 18% of income up to $129,722 earned in 2009, minus pension adjustment.
The Home Renovation Tax Credit applies to work and materials done before Feb 1, 2010. This can give you back up to 15% back on work done over $1,000 to a maximum of $10,000 of renovations.
Alberta’s personal income exemption amount rises by $50 to $16,825. After that a flat tax of 10% applies.
Good luck for your financial planning. Jerry
Looking at those tax percentages is just depressing. When do I get to keep my own money that I have worked for?
ReplyDeleteShell, many of us feel the same way. We work hard to pay our mortgage/rent and other bills, all contributing to the economy, but it seems like a lot goes to the government. If you are able to invest, there are ways to grow your money without taxes constantly taking a bite out of your wallet. RRSPs and TFSAs both grow your investments without tax interference. TFSAs in particular save you taxes when they grow because they do not get taxed upon withdrawal, no matter how much they have grown.
ReplyDeleteThere are other options as well that can help your money grow with less of a tax burden than your paycheque has. Talk to a financial professional to make sure you get the best advice to protect and grow your money. Jerry