The federal budget is a complex and ever-changing document that can have a significant impact on our lives. With the release of Budget 2020, it’s important to understand how the changes will affect you and your family.
Key Changes in Budget 2020
Budget 2020 includes a number of key changes that will affect Canadians, including:
- Personal income taxes: The basic personal amount will increase to $13,229, up from $12,069 in 2019. This means that you will pay less tax on your first $13,229 of income.
-
Tax brackets: The tax brackets for 2020 will be as follows:
- 15% on the first $48,535 of taxable income
- 20.5% on the next $48,534 of taxable income
- 26% on the next $53,304 of taxable income
- 29% on the next $63,895 of taxable income
- 33% on the next $216,511 of taxable income
- 35% on any taxable income over $216,511
- Canada Child Benefit: The maximum monthly benefit for the Canada Child Benefit will increase to $569 for children under 6 years old, and $469 for children aged 6 to 17.
- Old Age Security: The maximum monthly OAS pension will increase to $614.21.
- Guaranteed Income Supplement: The maximum monthly GIS benefit will increase to $946.65.
How Will Budget 2020 Affect Me?
The impact of Budget 2020 on you will depend on a number of factors, including your income, family situation, and province of residence. However, most Canadians will see some benefit from the changes in the budget.
Personal Income Taxes
If you are a taxpayer, you will benefit from the increase in the basic personal amount and the changes to the tax brackets. These changes will result in a tax savings of up to $208 for single taxpayers and up to $416 for families.
Families
Families will benefit from the increase in the Canada Child Benefit. The maximum monthly benefit will increase by $50 for children under 6 years old, and by $38 for children aged 6 to 17. This will provide families with more financial support to help them raise their children.
Seniors
Seniors will benefit from the increase in the OAS pension and the GIS benefit. The maximum monthly OAS pension will increase by $6.75, and the maximum monthly GIS benefit will increase by $9.75. This will provide seniors with more financial security in their retirement.
Conclusion
Budget 2020 includes a number of changes that will benefit Canadians of all ages. The increase in the basic personal amount, the changes to the tax brackets, and the increases to the Canada Child Benefit, OAS pension, and GIS benefit will provide Canadians with more financial support and security.
Tables
Table 1: Personal Income Tax Brackets
Taxable Income | Tax Rate |
---|---|
$0 – $48,535 | 15% |
$48,535 – $97,069 | 20.5% |
$97,069 – $150,473 | 26% |
$150,473 – $214,368 | 29% |
$214,368 – $430,879 | 33% |
Over $430,879 | 35% |
Table 2: Canada Child Benefit
Age of Child | Maximum Monthly Benefit |
---|---|
Under 6 | $569 |
6 to 17 | $469 |
Table 3: Old Age Security Pension
Age of Pensioner | Maximum Monthly Benefit |
---|---|
65 and over | $614.21 |
Table 4: Guaranteed Income Supplement
Age of Pensioner | Maximum Monthly Benefit |
---|---|
65 and over | $946.65 |