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Tax Implications of the New Year

Canadians can contribute a little more to their Tax Free Savings Accounts in the new year. The T-F-S-A account contribution limit is going up to 55-hundred dollars for 2013 from five-thousand in previous years. Meantime, the richest in Ontario and Quebec will see their income taxes jump again next week. The top rate for Ontario's biggest earners -- those earning more than 500-thousand dollars -- will move to 49.53 per cent on New Year's Day. In Quebec, the marginal tax rate will also edge up to 49.9 per cent on those earning just 100-thousand dollars or more a year. Overall, Canadians will see certain income tax and benefit amounts increase by two per cent for inflation.

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