FEDERAL BUDGET SUMMARY – 2017
To provide consistent treatment between mutual fund trusts and segregated
funds, Budget 2017 proposes to allow insurers to effect tax-deferred mergers of
segregated funds such that these rules parallel the mutual fund merger rules.
B. Personal Tax Measures
PERSONAL TAX RATES
No new personal income tax rate changes have been announced in this year’s
Budget, including the speculated changes to the capital gains inclusion rate. The
current marginal income tax rates are outlined below:
2017 Marginal Tax Rates
First $45,916 15.00% 7.50% -0.03% 5.24%
20.50% 10.25% 7.56% 11.67%
26.00% 13.00% 15.15% 18.11%
29.00% 14.50% 19.29% 21.62%
Over$202,800 33.00% 16.50% 24.81% 26.30%
DISABILITY TAX CREDIT – NURSE PRACTITIONERS
The disability tax credit is a 15% non-refundable tax credit that recognizes the
impact of non-itemizable disability related costs on an individual’s ability to pay
tax. An eligible medical practitioner must certify that the effects of an individual’s
impairment result in the individual meeting the requirements to qualify for the
disability tax credit.
Budget 2017 proposes to add nurse practitioners to the list of medical
practitioners that can certify eligibility for the disability tax credit.
MEDICAL EXPENSE TAX CREDIT – ELIGIBLE EXPENDITURES
Taxpayers in Canada are entitled to claim a 15% non-refundable tax credit with
respect to qualifying medical expenses. Currently, the cost of reproductive
technologies are eligible as qualifying medical expenses only where the
procedures are medically indicated because an individual has an existing illness or
The Budget proposes to clarify the application of the medical expense tax credit
allowing individuals to claim the cost of reproductive technologies where medical
intervention is required in order to conceive a child, even in the absence of an
existing illness or condition.