2006 Tax Changes     Friday, January 19, 2007. Toronto. Here are the major tax changes you need to know. This is not a complete list. To find out more, please visit Canada Revenue Agency website.   New Tax Rate Tax rate for the lowest tax bracket for 2006 is an average of 15.25% and 15.5% for 2007 and subsequent years.   Universal Child Care Benefit Starting July 2006, all families in Canada will be eligible to receive $100 per month for each child under 6. Age Amount There is a $1000 increase in the age related non-refundable tax credit. Age amount for 65+ is now $5,066.   RRSP Limit RRSP limit for 2006 is $18,000. In 2007 is it expected to be $20,000 and in 2008 = $21,000. In 2009 = $22,000 and after that RRSP limit will be indexed annually to reflect average wage growth.   Dividend Tax credit Eligible dividends from a Canadian corporation will have to gross-up 45% (previously 25%) and federal dividend tax credit has increased to approx 19% of the grossed-up amount (previously 13.33%).   Canada Child Tax Benefit The annual combined payment of Canada Child Tax Benefit (CCTB) and National Child Benefit Supplement (NCBS) increased to $3,200 (previously $2,950) for the first child and $2,975 (previously $2,730) for the 2nd child and $2,980 (previously $2,734) for each subsequent child.   New For Students If you are entitled to claim education amount, you might be eligible to be excluded from totally from certain scholarships, fellowships and bursaries income. Before 2006 - scholarships, fellowships and bursaries income after $3,000 was taxable. Also, starting 2006, full-time students may claim $65 monthly and part-time students may claim $20 monthly as text book credit in respect of the cost of textbooks. There was no textbook credit available before 2006.   Public Transit Passes Amount Starting June 30, 2006, you can claim the cost of public transit passes.