Tax Changes in 2018

 

By Nerissa McNaughton

 

The new year brings new tax changes, starting with that always controversial carbon levy. Launched in 2017 as a way to combat climate change, the carbon tax started at $20 per tonne. As of January 1^st, that rose to $30 per tonne. This impacts the price of gas and diesel as well. However, along with the rate hike comes larger rebates for many Albertans. If you, as the first adult in the household, had a $200 rebate in 2017, you can expect $300 in 2018.

 

The rebates are good news for residential households, but the carbon levy hike is a sore spot for businesses, especially fleet-related industries that spend a good portion of their operating budget on fuel. There is, however, some good news for the hardworking small business sector – a rate drop.

 

This year Canadian small businesses can expect to pay a little less in taxes. The rate dropped from 10.5 per cent to 10 per cent. Employment insurance (EI) premiums are going up, however (employers can expect to pay an additional $6-$13 per employee), so this drop may be offset by the EI hike.

 

As of April 1, your “bad” habits may cost you a little extra. The excise tax on beer, wine and spirits will be adjusted for inflation. On the upside again, minimum wage is on the rise. On October 1^st, the rate goes up to $15 per hour.

 

Taxes: this year will see some go up, some go down, and some adjusted to keep pace with inflation and quality of life. For a full look at taxes in Alberta, please visit www.alberta.ca/taxes.