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THE CANADIAN PRESS

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OTTAWA - Unlike recent years, there was no gift box of tax savings from Ottawa under the Christmas tree this year.

But thanks to provincial changes, some Canadians - especially Albertans - will be able to realize significant savings in 2009 starting New Year's Day.

Alberta is eliminating the health care premium, saving individuals $528 and families $1,056 on average this year, as well as introducing other tax savings.

Most other Canadians will have to wait until the Jan. 27 federal budget to see if their tax burden - as large as 44 per cent of income on average - will be significantly lightened in a multi-billion stimulus package being planned by Ottawa.

So far, Canadians have gotten little more than a lump of coal from Ottawa.

Starting today, the basic income tax personal exemption increases by $500 to $10,100, which the Canadian Taxpayers Federation calculates will save most taxpayers about $39 for the year.

But the lobby group notes the minor gain will be eclipsed by payroll tax changes - for both employment insurance and the Canada Pension Plan premiums - that will result in an increase of $90 for most workers.

The net impact? Minus $51.

That's quite a change from 2008, when most Canadian families were expected to gain well over $1,000 during the year as a result of lower income taxes and the cut to the GST from six per cent to five per cent.

Businesses will also be paying higher payroll taxes for employees in 2009, but will realize gains from the corporate income tax rate shrinking from the current 19.5 per cent to 19 per cent. The rate is scheduled to fall to 15 per cent by 2012.

Whether Canadians wind up paying more or less taxes in 2009 largely depends on whether they take advantage of the new Tax-Free Savings Account that allows them to invest $5,000 a year starting Jan. 1 without paying taxes on future growth.

Hennig says the ability to earn profits in a tax-free account could potentially be a boon for Canadians.