As widely reported, the McGuinty government has agreed to implement a “2% surtax” on individuals with incomes over $500,000. A press release issued by the Premier’s Office on April 23, 2012, provides further details:
The new tax will be eliminated when Ontario’s budget is balanced (scheduled for 2017-2018).
Our understanding is that Ontario’s existing 56% surtax will apply to the 12.16% rate in 2012 and the 13.16% rate in 2013. As a result, the tax increase will actually exceed 2%. Read our Tax memo to learn more.