PERSONAL TAX RATES
PERSONAL TAX CREDITS
CORPORATE TAX RATES
CAPITAL GAINS EXEMPTION
RRSP
CANADA PENSION PLAN (CPP) & EMPLOYMENT INSURANCE (EI)
PRESCRIBED RATES FOR AUTOMOBILES
TAX CUTS AT YOUR FINGERTIPS
While Tax facts and figures provide a wealth of information, it is not meant to be all-encompassing, and should not be used as a sole basis for specific action. Seeking professional advice is always prudent when making or considering significant decisions.
The table shows the combined federal and provincial marginal tax rates – the percentage of tax you pay on your last dollar of income, or on additional income.
Income Bracket
Marginal Federal Tax
Marginal BC Tax
Marginal Income Tax Rate
Tax Year 2011
$0 to $10,527
0.00%
$10,528 to $11,088
15.00%
$11,089 to $36,146
5.06%
20.06%
$36,147 to $41,544
7.70%
22.70%
$41,545 to $72,293
22.00%
29.70%
$72,294 to $83,001
10.50%
32.50%
$83,002 to $83,088
12.29%
34.29%
$83,089 to $100,787
26.00%
38.29%
$100,788 to $128,800
14.70%
40.70%
$127,022 & Over
29.00%
43.70%
Tax Year 2010
$0 to $10,382
$10,383 to $11,000
$11,001 to $35,859
$35,860 to $40,970
$40,971 to $71,719
$71,720 to $81,941
$81,942 to $82,342
36.50%
$82,343 to $99,987
$99,988 to $127,021
Tax Year 2009
$0 to $9,373
$9,373 to $10,320
$10,321 to $35,716
$35,717 to $40,726
$40,726 to $71,433
$71,434 to $81,452
$81,453 to $82,014
$82,014 to $99,588
$99,589 to $126,264
$126,265 & Over
[BACK TO TOP]
All credits are non-refundable unless otherwise noted. Non-refundable credits reduce or eliminate tax. Unless there is tax liability they have no value.
YEAR 2010
Federal Amounts
Federal Credit
BC Amounts
BC Credit
General factor
15%
Charitable donations:
29%
Non-eligible dividend tax credit:
13.33%
3.40%
Eligible dividend tax credit:
17.97%
10.83%
Basic
$10,382
$1,557
$9,373
$557
Spouse and equivalent to spouse
$8,026
$488
Child
$2,101
$315
-
Age 65
$6,446
$967
$4,229
$214
Disability
$7,239
$4,223
$1,086
$633
$7,055
$4,101
$357
$208
Infirm dependant – age 18 and over
Adoption
$10,975
$1,646
10,968
$555
Children’s fitness
$500
$75
Caregiver
Pension income
$2,000
$300
$1,008
$51
CPP
$2,163
$324
$2,154
$109
Employment insurance (EI)
$747
$112
$751
$38
Canada employment
$1,051
$158
Education and textbook (per month)
$465
$140
$70
$21
$200
$57
$10
$3
Personal tax credits for other provinces and territories can be found at the following CCRA Website
Active Business Income up to $500,000
Investment
Income
Federal rate (before deductions)
38.00%
Deductions
-17.00%
-10.00%
N/A
6.67%
Federal rate
11.00%
34.67%
Prov
Fed+ Prov
Provincial rate
2.50%
13.50%
45.17%
Federal Small Business Limit
Federal small business rates apply only to the first $500,000 of active business income earned in Canada by associated CCPC’s. The $500,000 limit is reduced on a straight-line basis for CCPC’s that, in the preceding year, had taxable capital employed in Canada between $10 million and $15 million. This claw back applies to all provincial and territorial small business deductions except Ontario.
There is a $750,000 lifetime capital gains exemption (LCGE), which equates to a $375,000 lifetime capital gains deduction (1/2 of the $750,000 LCGE). The deduction can be claimed against taxable capital gains on the disposal by an individual of:
o qualified small business corporation (SBC) shares
o qualified farm property, and
o for dispositions occurring after May 1, 2006, qualified fishing property
The maximum LCGE that can be claimed by any individual was increased from $500,000 to $750,000, effective March 19, 2007, as a result of the 2007 Federal budget. This includes exemptions for small business corporation shares, farm property, fishing property, and any capital gains exemptions used in 1994 or earlier.
The rules relating to the capital gains exemption are complex, and professional advice should be obtained for anyone who is hoping to take advantage of this deduction. [BACK TO TOP]
An RRSP is a savings contract registered with the CCRA between you and a financial institution such as a bank, trust company, credit union, or life insurance company. Your contributions, and the income they earn, compound tax-free while sheltered in the RRSP. Thus you accumulate a larger investment fund. Investment decisions can be made by you through a self-directed RRSP.
Registered retirement savings plan limits will increase as follows.
YEAR
RRSP (*)
Income Level (+)
2011
$22,450
$124,722
2010
$22,000
$122,223
2009
$21,000
$116,667
The amount that can be contributed in a year is limited by:
(*) RRSP Contribution Limit for a year is the lesser of the dollar limit for that year and 18% of the prior year’s earned income, less any pension adjustment for the prior year.
(+) Earned income needed in prior year for maximum contribution.
CPP PREMIUMS
Maximum pensionable earnings
$48,300
$47,200
46,300
- Basic exemption
$3,500
= Maximum contributory earnings
$44,800
$43,700
42,800
Employer/employee rate
4.95%
Maximum employer/employee contribution
$2,218
$2,119
Self-employed contribution rate
9.9%
Maximum self-employed contribution (note 1)
$4,435
$4,326
$4,237
EI PREMIUMS
Maximum annual insurable earnings
$44,200
$43,200
$42,300
Premium rate per $100 insurable earnings
$1.78 $2.50
$1.73 $2.42
Annual maximum contribution
$787 $1,101
$747 $1,046
$732 $1,025
Note 1: Self-employed individuals are permitted to deduct half of CPP premiums paid for their own coverage. The non-deductible half qualifies for a tax credit. Self-employed individuals do not pay EI premiums.
2010 Prescribed rates
Deduction limits
Owned cars
Maximum capital cost on which capital cost allowance (CCA) can be claimed
$30,000 + GST & PST
Maximum monthly interest
Leased cars
Thresholds used to determine maximum deduction for lease payments
Lease cost limit
Monthly lease limit
$800 + GST & PST
Manufacturer’s list price limit
$35,294 + GST & PST
Automobile allowances
Per-kilometre allowance
Same limits as tax-exempt allowances, below
Taxable Benefits
Tax-exempt allowances
Kilometres driven in the Yukon, NWT, or Nunavut
First 5,000
56˘
Each additional
50˘
Kilometres driven in all other locations
52˘
46˘
Operating cost benefit
Persons employed principally in selling or leasing automobiles
21˘
All other employees
24˘