Chapter 1 – Help for the Middle Class

Changes to the Canada Child Tax Benefit (CCTB) took effect in July, 2016. I recommend clicking on the link to read the announcement and policy in full. Click here to learn more and see more graphics.

 

Chart 1.3A - Personal Income Tax Rate Changes, 2016. For details, see the previous paragraphs.

Notes: Benefits received under the current system are illustrative and reflect federal and provincial/territorial taxes paid on the Universal Child Care Benefit. The actual after-tax amounts would depend on the family’s province or territory of residence. It is assumed that the single parent includes the Universal Child Care Benefit in the child’s income. The family income referred to in this chart is known as “adjusted family net income.” This income is a family’s net income (the net income of the individual and the individual’s spouse or common-law partner reported on line 236 of the income tax return) minus any Universal Child Care Benefit and Registered Disability Savings Plan income received plus any Universal Child Care Benefit and Registered Disability Savings Plan amounts repaid. Adjusted family net income will be used to determine entitlement to the Canada Child Benefit. NCBs = National Child Benefit supplement; CCTB = Canada Child Tax Benefit; and UCCB = Universal Child Care Benefit.

Source: Department of Finance.

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