Budget 2018: Only a Few Tax Changes for Individuals

The 2018 Federal Budget was released on February 27 and was rather light on personal tax changes. There are no changes to personal tax rates.

Furthermore, contribution limits previously in place for RRSPs, TFSAs, RESPs, and RDSPs also remain unchanged. That said, there are some important points to be aware of:

Passive Investment Income Earned in a Corporation

The budget has refined some of the proposals that were first announced in the Summer of 2017. Specifically, if a corporation earns more than $50,000 in passive investment income, it will serve to reduce the amount of income that qualifies for the small business tax rate.

Medical Expense Tax Credit

The credit has been expanded to include expenses related to an animal trained to assist someone with a severe mental impairment.

Registered Disability Savings Plans (RDSPs)

If the capacity of an adult to enter an RDSP contract is in doubt, a temporary measure had previously been in place to allow a qualified family member to be the plan holder. This has been extended to 2023.