When you have personal income it is a good idea to know what your personal tax rate is...mostly your marginal tax rate. This helps you do some simple tax planning and also helps to determine which type of investments may be best for you or if you will gain some credits from CRA. Note****this schedule only includes the federal tax rate; your provincial tax rate needs consideration.
Why is it important? Here is a simple example. Sam is a small business owner and our Padgett office is helping to determine what his final personal income tax is going to be and how we can mitigate some taxes. We take a look at his marginal tax rate and it is 45% and he currently has some taxes payable. With a scenario like this we may suggest that he purchase some RRSPs for the current reporting period. So Sam considers buying $3,000 of RRSPs and would immediately get a tax savings of about $3,000 x 45% = $1,350. Once we know what the savings vs costs will be we can help to give Sam the best information and he can make a better informed decision.
If you are not getting this information from your tax preparer then it leaves room for improvement. Every year that your tax return is prepared it would be worth asking when you are reviewed your tax return.