Minimum Wage and Tax Rates in Canada from 2018

It is time to explore what the new laws and wage rules in Canada are going to implement in 2018. One of the firsts is reducing the tax rate for small Canadian businesses from 10.5 to 10 percent annually. The Liberal government had promised this drop for a while and finally implemented it in 2018. Even though the drop is valid from January 1, 2018, it is applicable for tax returns that will file in 2019. There is a slight increase in the EI premiums. According to Canadian Taxpayers Federation, it will be CAD 6 for employees and CAD 13 for employers. The federal government also announced that excise tax would increase on spirits, wine, and beer but not until April 1, 2018. 2018 also marks the comeback of sponsorship for parents and grandparents after it was out of the scene for a while. Ontario increased its minimum wage per hour from $11.60 to $14. The wage crosses Alberta’s minimum wage of $13.60 to become the highest in the country. However, the government of Alberta is planning to increase its minimum hourly wage to CAD 15 from October 1st, 2018 onward. Ontario will increase it to CAD 15 from January 2019 onward. Also, youth younger than 25 years of age don’t have to pay for their medical prescriptions in Ontario. Changes to the carbon tax Alberta has increased its carbon tax from CAD 20 to CAD 30. It won’t affect the public much as they will only have to pay two cents more per liter. New Brunswickers has marked third Monday every February as a Family Day and will be a paid off. There is no salary hike in that province. Quebec’s is having lowest income tax bracket, and it reduced from 16 percent to 15 percent per annum, which is a major relief.

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