Income Splitting
See how income splitting can reduce the overall tax bill.
Income splitting involves transferring income from an individual with a higher marginal tax rate
to an individual with a lower marginal tax rate.
Results
|
Alberta
|
| Name of taxpayer |
Jenna
|
Jalen
|
| Taxable income |
|
|
Total
|
| BEFORE splitting income |
100,000
|
0
|
100,000
|
| AFTER splitting income |
50,000
|
50,000
|
100,000
|
| No income splitting |
|
|
Total
|
| Income |
$100,000
|
$0
|
$100,000
|
| Taxes |
$22,128
|
$0
|
A
$22,128
|
| Marginal tax rate |
33.89%
|
0.00%
|
|
| Income splitting |
|
|
Total
|
| Income |
$100,000
|
$0
|
$100,000
|
| Taxes |
$22,128
|
$0
|
B
$22,128
|
| Marginal tax rate |
33.89%
|
0.00%
|
|
| Taxes saved by splitting income |
|
(A minus B)
|
|
Results
Total Taxes
No Income Splitting
Income Splitting
Tax Savings
Assumptions
Calculations use marginal tax rates as of . Rates take all federal and provincial taxes and surtaxes into account and the basic personal tax credit.
Disclaimer
Calculations use marginal tax rates as of . Rates take all federal and provincial taxes and surtaxes into account and the basic personal tax credit.
Disclaimer
