Payroll Taxes Increase July 1 in Three Provinces and the Yukon

Payroll deduction tables have been adjusted as of July 1 for BC, NB, NL and YK as a result of changes announced in the 2015 provincial and territorial budgets.

The February 17, 2015, British Columbia budget announced that the BC Tax Reduction amount would be increased from $412 to $432 for the 2015 year. Increases in the phase-out rate and threshold are also reflected in the new payroll tables. Taxpayers earning less than about $31,000 will see a slight decrease in their withholdings for July to December

The March 31, 2015, New Brunswick budget announced an increase in tax rates for taxpayers with income over $150,000, effective July 1, 2015. Any employees earning more than $150,000 will see an increase in withholding as of July 1.

The April 30, 2015, Newfoundland and Labrador budget announced an increase in tax rates for taxpayers earning over $125,000, effective July 1, 2015. Any employees earning more than $125,000 will see an increase in withholding as of July 1.

The April 2, 2015, Yukon budget announced a reduction in tax rates for taxpayers earning under $138,586 and an increase in tax rates for those earning more. These rates are retroactive to January 1, 2015, so the rates being applied to taxpayers for July to December will be prorated so that the average for the year matches the new rates.