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Tax return changes for 2018 in Canada

Tax rules change every year and 2018 tax year is no exception. We have consolidated all the tax changes by province for your easy consumption. Review the federal change and the province specific changes applicable to you. If you have any questions, you can Contact Us with subject 'new tax changes'.

Federal Alberta British Columbia Manitoba New Brunswick Newfoundland and Labrador Nova Scotia Ontario Prince Edward Island Quebec Saskatchewan

Federal tax changes in 2018

Employee home relocation loan deduction (line 248 of the return)

Starting 2018 tax year, this deduction has been eliminated.

First-time donor’s super credit (S1 : line 349 )

Starting 2018 tax year, first-time donor’s super credit has been eliminated.

Investment tax credit (S1 : line 412)

Eligibility for the mineral exploration tax credit has been extended to flow-through share agreements entered into before April 2019.

Medical expenses (S1: line 330 and 331)

Eligible medical expenses have been expanded to include a variety of expenses relating to service animals specially trained to perform specific tasks for a patient with a severe mental impairment.

Alberta tax changes in 2018

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more income tax savings and a bigger tax refund for you. Here is the summary of changes:

  • Basic personal amount increased to 18,915 ;
  • Maximum age amount increased to 5,271 ;
  • Spouse amount increased to 18,915 ;
  • Amount for an eligible dependent increased to 18,915;
  • Maximum caregiver amount for dependent increased to 10,949 ;
  • Maximum amount for infirm dependent increased to 10,949 ;
  • Maximum disability amount increased to 14,590 ;
  • Maximum adoption amount for eligible child increased to 12,936 ;

Dividend tax credit

The rate that applies to “other than eligible dividends” has changed to 2.07% for 2018.

British Columbia tax changes in 2018

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

  • Basic personal amount increased to 10,412 ;
  • Maximum age amount increased to 4,669 ;
  • Maximum spouse amount is now 8,915 ;
  • Maximum amount for an eligible dependent is now 8,915 ;
  • Maximum BC caregiver amount for dependent increased to 4,556 ;
  • Maximum disability amount increased to 7,809 ;
  • Maximum adoption amount for eligible child increased to 15,905 ;

BC caregiver amount - replacing old caregiver and infirm dependent amount

The former amount for infirm dependants age 18 or older and caregiver amount have been replaced by the new British Columbia caregiver amount.

Children credit - removed

The children’s fitness amount, children’s fitness equipment amount, children’s art amount and the education coaching amount have been discontinued

Manitoba tax changes in 2018

Change in provincial non-refundable tax credit

  • Basic personal amount increased to 9,382 ;
  • Maximum age amount remains at 3,728 ;
  • Maximum spouse amount is now 9,134 ;
  • Maximum amount for an eligible dependent is now 9,134 ;
  • Maximum caregiver amount for dependent is 3,605 ;
  • Maximum amount for infirm dependent is 3,605 ;
  • Maximum disability amount is 6,180 ;
  • Maximum adoption amount for eligible child is 10,000 ;

Climate action incentive - new

Manitoba residents may be eligible to claim the new federal refundable credit for the climate action incentive. Remember to claim this in Credit tab.

Tuition fee credit - removed

The tuition fee income tax rebate and the advance tuition fee income tax rebate have been eliminated.

Change in political contribution tax credit

The maximum eligible contribution to the political contribution tax credit has increased from 1,275 to 2,325 resulting in a credit of upto 1,000.

New Brunswick tax changes in 2018

Climate action incentive - new

New Brunswick residents may be eligible to claim the new federal refundable credit for the climate action incentive. Remember to claim this in Credit tab.

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

  • Basic personal amount increased to 10,043 ;
  • Maximum age amount increased to 4,904 ;
  • Maximum spouse amount and amount for an eligible dependent increased to 8,528 ;
  • Maximum caregiver amount for dependent increased to 4,743 ;
  • Maximum amount for infirm dependent increased to 4,743 ;
  • Maximum disability amount increased to 8,131 ;

Change in dividend tax credit rate

The rate used to calculate the dividend tax credit has decreased to 2.853% for other than eligible dividends.

Newfoundland and Labrador tax changes in 2018

Change in personal income levels for tax rate

Provincial income levels have changed for tax rate. Here is the summary of changes:

  • From $0 to $36,926, tax rate is 8.7%
  • From $36,926 to $73,852, tax rate is 14.5%
  • From $73,852 to $131,850, tax rate is 15.8%
  • From $131,850 to $184,590, tax rate is 17.3%
  • For income more than $184,590, tax rate is 18.3%

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings and bigger tax refund you. Here is the summary of changes:

  • Basic personal amount increased to $9,247 ;
  • Maximum age amount increased to $5,903 ;
  • Maximum spouse amount and amount for an eligible dependent increased to $7,556 ;
  • Maximum caregiver amount for dependent and amount for infirm dependent increased to $2,936 ;
  • Maximum disability amount increased to $6,240 ;
  • Maximum adoption amount for eligible child increased to $12,479 ;

Nova Scotia tax changes in 2018

Change in provincial non-refundable tax credit

The age amount, the basic personal amount, the spouse or common-law partner amount, and the amount for an eligible dependant have increased for individuals with a taxable income of $25,000 or less. The increase is phased out for taxable income between $25,000 and $75,000. Here is the summary of changes:

  • Basic personal amount can vary from $8,481 to $11,481 ;
  • Maximum age amount can vary from $4,141 to $5,606 ;
  • Maximum spouse amount and amount for an eligible dependent can vary from $8,481 to $11,481 ;
  • Maximum amount for infirm dependent increased to $2,798;
  • Maximum caregiver amount for dependent increased to $4,898;
  • Maximum disability amount increased to $7,341 ;

Change in dividend tax credit rate

The rate used to calculate the dividend tax credit has decreased to 3.16% for other than eligible dividends.

Ontario tax changes in 2018

Climate action incentive - new

Ontario residents may be eligible to claim the new federal refundable credit for the climate action incentive. Remember to claim this in Credit tab.

Change in tuition and education credit

The Ontario tuition and education tax credits have been discontinued. Students can continue to carry forward unused amounts to claim in a future year.

Ontario seniors’ public transit tax credit

Eligible seniors (65 years or older) can claim this credit for amount paid for public transit pass .

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

  • Basic personal amount increased to $10,354 ;
  • Maximum age amount increased to $5,055 ;
  • Maximum spouse amount and amount for an eligible dependent increased to $8,792 ;
  • Maximum caregiver amount for dependent and amount for infirm dependent is $4,881 ;
  • Maximum disability amount increased to $8,365 ;
  • Maximum adoption amount for eligible child increased to $12,632 ;

Prince Edward Island tax changes in 2018

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings and a bigger tax refund for you. Here is the summary of changes:

  • Basic personal amount increased to $9,160 ;
  • Maximum spouse amount and amount for an eligible dependent increased to $7,780 ;

Change in dividend tax credit rate

The rate used to calculate the dividend tax credit has decreased to 2.9% for other than eligible dividends.

Quebec tax changes in 2018

Senior assistance tax credit

If you were 70 or over on December 31, 2018, you may be entitled to the senior assistance tax credit. The maximum tax credit is $400 if you had a spouse on December 31, 2018, or $200 if you did not.

Automatic payment of certain tax credits

You no longer have to claim the solidarity tax credit (basic amount and spouse's portion of the QST component), the work premium or the tax shield. However, to make sure that you receive the full amount you are entitled to, you should complete Schedule D or P.

Home buyers' tax credit

If you bought a qualifying home in 2018, you may be entitled to the home buyers' tax credit.

RénoVert tax credit

The period of eligibility for the RénoVert tax credit has been extended to March 31, 2019.

Tax credit for experienced workers - line 391

The age of eligibility for the tax credit for experienced workers has been lowered from 63 to 61, and the maximum eligible work income on which the credit is calculated has been increased from $8,000 to $11,000 for workers 65 or over. The maximum tax credit is $1,650.

Tax credit for childcare expenses - line 455

The limit on childcare expenses for a child with a severe and prolonged impairment of mental or physical functions has been increased from $11,000 to $13,000, while the limit for a child born after December 31, 2011, has been increased from $9,000 to $9,500.

Dividend tax credit - line 128 and 415

The gross-up percentage for ordinary dividends went from 17% to 16%. the rate of the dividend tax credit applicable to the actual amount of ordinary dividends went from 8.2485% (the rate for 2017) to 8.178%, for the period from January 1 to March 27, 2018; and 7.2848%, for the period from March 28 to December 31, 2018. The rate of the tax credit applicable to the actual amount of eligible dividends went from 16.422% to 16.3668% for the period from March 28 to December 31, 2018.

Tax credits for Capital régional et coopératif Desjardins shares - line 422

The rate of the tax credit for the acquisition of Capital régional et coopératif Desjardins shares has been reduced from 40% to 35% for shares acquired after February 28, 2018. You can claim a non-refundable tax credit equal to 10% of the value of exchanged Capital régional et coopératif Desjardins shares.

Amount for a person living alone - line 361

Grandparents and great-grandparents living with their grandchildren or great-grandchildren who are full-time students aged 18 or older are eligible for the amount for a person living alone now.

Independent living tax credit for seniors - line 462 point 24

The ineligible portion of expenses paid to acquire eligible equipment or fixtures has been reduced from $500 to $250. In addition, alert systems for the hearing-impaired, hearing aids, non-motorized wheelchairs and other equipment and fixtures are now eligible.

Tax credit for caregivers - line 462 point 2

This tax credit is now open to a fourth type of caregiver—those who support an eligible relative whom they regularly and continuously assist in carrying out a basic activity of daily living.

Volunteer respite services - line 462 point 20

The minimum number of hours of service you must provide to a caregiver has been reduced from 400 to 200.

Tax credit for taxi drivers - line 462 point 3

The maximum tax credit for taxi drivers has been increased from $1,069 to $1,074.

Tax credit for a large cultural donation - line 395

The eligibility period for the tax credit for a large cultural donation has been extended to 2023.

Income splitting rules changes

Under new rules that came into effect in 2018, the special tax on split income now applies to individuals 18 or older and to other types of income. You can deduct split income on line 295.

Quebec prescription drug insurance plan

On July 1, 2018, the contribution rates for the Québec prescription drug insurance plan were decreased. Consequently, the maximum premium has been reduced from $667 to $616. However, the maximum premium payable for 2018 is $641.50.

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

  • Deduction for workers increased to $1,150 ;
  • Basic personal amount increased to $15,012 ;
  • The amount for a person living alone increased to $1,721 on schedule B ;
  • Age amount increased to $3,158 on schedule B ;

Saskatchewan tax changes in 2018

Change in provincial income tax rate

The personal income tax rates have been reduced for all taxable income levels. Here is the summary of changes:

  • From $0 to $45,225, tax rate is 10.5%
  • From $45,225 to $129,214, tax rate is 12.5%
  • For income more than $129,214, tax rate is 14.5%

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings and a bigger tax refund for you. Here is the summary of changes:

  • Basic personal amount increased to $16,065 ;
  • Maximum age amount increased to $4,894 ;
  • Maximum spouse amount and amount for an eligible dependent increased to $16,065 ;
  • Maximum caregiver amount for dependent and amount for infirm dependent increased to $9,464 ;
  • Maximum disability amount increased to $9,464 ;

Rate reduced

The charitable donations rate, tax on split income rate, and excess EPSP rate have all been reduced.

Climate action incentive

Saskatchewan residents may be eligible to claim the new federal refundable credit for the climate action incentive. Remember to claim it in Credit tab.

Labour-sponsored venture capital tax credit reduced

The labour-sponsored venture capital tax credit rate has changed. The maximum credit that can be claimed by an individual has also changed from $1,000 to $875.

Change in dividend tax credit rate

The rate used to calculate the dividend tax credit for eligible dividends has changed to 11% and rate for other than eligible dividends has changed to 3.333%.

Tuition and education tax credits - discontinued

The tuition and education tax credits have been discontinued.