Canada has a graduated income tax system that increases the amount of income tax you pay as your income gets higher. Income splitting is a strategy to that individuals can use to try and shift income from a high income earner to a lower income earner in order to reduce the overall tax of the family group.
Over the years, I have published a number of articles on income splitting and pension income splitting that have generated quite a bit of traffic. I have brought these articles together on a single page and I hope you find it helpful.
Introduction To Income Splitting
- What is income splitting?
- Learn about the income splitting or attribution rules – Attribution means that income is attributed to the original person.
- The right way and wrong way to split income – This is a must read for anyone who has a joint account or other income splitting strategy!
Pension Income Splitting
- What is pension income splitting? – If you receive pension income, you might be able to split up to 1/2 of your pension income with your spouse or common law partner.
- What is eligible pension income?
- How to split your pension income with your spouse.
- Why pension splitting does not kill the spousal RRSP. With the introduction of pension splitting many feel the spousal RRSP is dead. Not so!
- What is a spousal RRSP?
Income Splitting Opportunities
- 12 Income splitting opportunities for Canadians
- Use a loan to your spouse and income split – Make sure it is worth the effort!
- Reverse income split with your spouse using dividends!
- Top 5 Myths About Income Tax
- Small business owners and income splitting
Income Splitting & Estate Planning
- Can you income split your inheritance? With the right planning you can allow your children to benefit from lower tax rates.
- Avoid probate and split income using trusts.
Suggest A Tax Topic
If you have a suggestion for an income splitting article, please feel free to suggest an income tax topic.
You can also find plenty of income tax help articles on a variety of topics including: TFSA, Estate Planning & Wills, RRSP’s, Investing, and Small Business. This site is organized to provide you with the help you need.
- Try our tax search function in top right hand side of the page.
- You can also find tax help by categories on our search page.
- You can look through our financial planning pages or look through our RRSP resource guide or the income splitting guide.