ARCHIVED CD 2010-009: Information Notice to Employees
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Tax Changes -- Effective July 1, 2010
The purpose of this information notice to employees is to provide you with information relative to the tax legislation changes that are effective July 1, 2010.
The following provincial budgets contained changes to the respective tax legislation which will be effective July 1, 2010.
Newfoundland and Labrador
Newfoundland and Labrador has reduced the second and third personal income tax brackets from 12.8% to 12.5% and 15.5% to 13.3% respectively.
The following table provides the changes to the Newfoundland and Labrador tax rates effective July 1, 2010.
| Tax brackets and rates effective January1,2010 | Tax brackets and rates effectiveJuly 1, 2010 | ||
|---|---|---|---|
| Tax brackets | Tax rates | Tax brackets | Tax rates |
| More than - Not more than | More than - Not more than | ||
| $0 to $31,278 | 7.70% | $0 to $31,278 | 7.70% |
| $31,278 to $62,556 | 12.80% | $31,278 to $62,556 | 12.50% |
| Over $62,556 | 15.50% | Over $62,556 | 13.30% |
Personal Tax Credits
Newfoundland and Labrador is increasing the provincial Age amount tax credit to $5,000. The following table provides the changes to the Newfoundland and Labrador tax credit amounts effective July 1, 2010.
| Amount effective January1,2010 | Amount effectiveJuly 1, 2010 | |
|---|---|---|
| Age amount | maximum of $3,681 | maximum of $5,000 |
The "2010 Newfoundland and Labrador Personal Tax Credits Return" (TD1NL) form has been revised to include these changes.
Nova Scotia
The government of Nova Scotia has announced that the province will add a fifth tax bracket for personal taxable income in excess of $150,000.
The following table provides the changes to the Nova Scotia tax brackets and rates effective July 1, 2010.
| Nova Scotia Tax Brackets and Rates | |||
|---|---|---|---|
| Tax brackets and rates effective January1,2010 | Tax brackets and rates effectiveJuly 1, 2010 | ||
| Tax brackets | Tax rates | Tax brackets | Tax rates |
| More than - Not more than | More than - Not more than | ||
| $0 to $29,590 | 8.79% | $0 to $29,590 | 8.79% |
| $29,590 to $59,180 | 14.95% | $29,590 to $59,180 | 14.95% |
| $59,180 to $93,000 | 16.67% | $59,180 to $93,000 | 16.67% |
| Over $93,000 | 17.50% | $93,000 to $150,000 | 17.50% |
| Over $150,000 | 24.50% | ||
The current provincial surtax equal to 10% of individual provincial tax payable in excess of $10,000 will be suspended effective July 1, 2010.
Multiple Tax Adjustment Factors
The Canada Revenue Agency (CRA) has provided new rates for the Multiple Tax Adjustment Factors applicable to the province of Nova Scotia, effective July 1, 2010. The Multiple Tax Adjustment Factors effective July 1, 2010 will be as follows:
| Federal Tax Brackets | ||||
|---|---|---|---|---|
| Tax brackets and rates effective July 1, 2010 | ||||
| Tax brackets | Tax rates | Nova Scotia | New Brunswick | Ontario |
| More than - Not more than | ||||
| $0 to $40,970 | 15.00% | 90% | 94.00% | 61% |
| $40,970 to $81,941 | 22.00% | 103% | 93.00% | 73% |
| $81,941 to $127,021 | 26.00% | 103% | 89.00% | 86% |
| Over $127,021 | 29.00% | 103% | 88.00% | 89% |
All pay systems will be programmed to automatically reflect the new provincial tax rates for payments dated on or after July 1, 2010.
Effective July1,2010, employees who wish to obtain the additional credit for the Newfoundland and Labrador Age amount personal tax credit must file a revised "2010 Newfoundland and Labrador Personal Tax Credits Return" (TD1NL) form. This form is available at District Taxation Office (DTO) or on the Internet at the following address: Canada Revenue Agency - Forms listed by form number
Any inquiries on the information contained in this document should be addressed to your compensation advisor.
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