New Taxes and Price Hikes coming

A new year means a fresh start for everyone. Here in Ontario, 2019 will also bring higher gas prices, more Canadian Pension Plan contributions and another wave of tax changes.

Be prepared for your first paycheck of 2019 to be slightly lower as Ottawa increases Canadian Pension Plan contributions from 4.95% to 5.1%. It’s the beginning of a four-year increase that’ll cap off at 5.95%.

While it doesn’t seem like a lot of money now, accountant Alan Rowell says a looming 4% surtax in 2024 will definitely leave a mark.

According to Marvin Ryder, the biggest hike will come in April after the federal government imposes its new carbon tax. That means prices at the pump will increase by 4.42 cents a litre.

So while Canadians continue to enjoy lower-priced fuel, Ryder foresees gas prices increasing well before then.

Additionally, while Ottawa is lowering the small business tax rate from 10 to 9%, it’s also applying pressure on small business to re-invest in themselves. Starting tomorrow, businesses with passive income from investments or even rent exceeding $50,000 could face higher taxes.