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Source Deduction Limits Toolkit

Income Tax/CRA

2022/2023 tax brackets, combined British Columbia and Federal rates:

 

2023 Taxable Income Tax Rate 2022 Taxable Income Tax Rate
First $45,654 20.06% First $43,070 20.06%
over $45,654 up to $53,359 22.70% over $43,070 up to $50,197 22.70%
over $53,359 up to $91,310 28.20% over $50,197 up to $86,141 28.20%
over $91,310 up to $104,835 31.00% over $86,141 up to $98,901 31.00%
over $104,835 up to $106,717 32.79% over $98,901 up to $100,393 32.79%
over $106,717 up to $127,299 38.29% over $100,393 up to $120,094 38.29%
over $127,299 up to $165,430 40.70% over $120,094 up to $155,625 40.70%
over $165,430 up to $172,602 44.08% over $155,625 up to $162,382 44.08%
over $172,602 up to $235,675 46.18% over $162,382 up to $221,708 46.18%
over $235,675 up to $240,716 49.80% over $221,708 up to $227,091 49.80%
over $240,716 53.5% over $227,091 53.5%
BC Basic Personal Amount Tax Rate BC Basic Personal Amount Tax Rate
$11,981 5.06% $11,302 5.06%

 

Federal Basic Personal Amount Tax Rate Federal Basic Personal Amount Tax Rate
$15,000 15% $14,398 15%

Canada Pension Plan

The maximum pensionable CPP earnings level for 2023 has increased by $1,100 to $66,600. Contributors who earn more than the $66,600 ceiling on pensionable earnings in the year 2023 are not required or allowed to contribute more to the CPP.

The basic exemption for 2023 remains at $3,500.

The employee and employer contribution rates for 2023 will be 5.95%—up from 5.70% in 2022, and the self-employed contribution rate will be 11.9%—up from 11.4% in 2022. The increase in contribution rate is due to the continued implementation of the CPP enhancement.

The maximum employer and employee contribution to the plan for 2023 will be $3,754.45 each and the maximum self-employed contribution will be $7,508.90. The maximums in 2022 were $3,499.80 and $6,999.60. (via Canada.ca)

Employment Insurance

The maximum EI earnings for 2023 have increased from $60,300to $61,500. Contributors who earn more than the $61,500 ceiling on insurable earnings in the year 2023 are not required to contribute more to EI.

Employee contribution rates for the year 2023 will increase to 1.63% per $100. The maximum employee contribution to the plan in 2023 is now $1,002.45, up from $952.74 in 2022.

RRSP

How much can you contribute?

 

The historical limits and increases for registered retirement savings plans (RRSPs) and Defined Contribution (also known as Money Purchase) Registered Pension Plans (RPPs) are as follows:

 

Year RRSP Defined Contribution RPP
2013 $23,820 $24,270
2014 $24,270 $24,930
2015 $24,930 $25,370
2016 $25,370 $26,010
2017 $26,010 $26,230
2018 $26,230 $26,500
2019 $26,500 $27,230
2020 $27,230 $27,830
2021 $27,830 $29,210
2022 $29,210 $30,780
2023 $30,780 $31,560
2024 $31,560 TBD

Permitted CCRA Withdrawals from an RRSP

Home Buyers’ Plan (HBP)

  • Limits: $35,000 per participant
  • Eligibility: ‘First time home owners’
  • Repayment: Within a period of no more than 15 years following the withdrawal

Lifelong Learning Plan (LLP)

  • Limits: $10,000 per year to a maximum of $20,000 over four years
  • Eligibility: either you or your partner must be enrolled in a qualifying educational program, minimum of three months duration
  • Repayment: Within a period of no more than 10 years following the withdrawal

TFSA (Tax-Free Savings Account)

  • Limits: $6,500 for 2023, a $500 increase after remaining the same from 2019 through 2022.
  • Any unused contribution room can be carried forward. There is no lifetime limit on total contributions.
  • TFSA contribution room is tracked by CRA and reported on your Notice of Assessment. An income tax return MUST be filed each year to qualify for your annual amount. Even in years without reported income a tax return should be filed to qualify for your annual TFSA contribution entitlement.
  • Contributions can be made by made by Canadian residents aged 18 and over.
  • Contributions can also be made by a spouse or common-law partner, with no applicable attribution rules to either spouse.

RESP (Registered Educational Savings Plan)

  • Limits: No annual limits; Lifetime contribution limit of $50,000
  • CESG (Canadian Education Savings Grant) will contribute 20% on the first $2,500 of annual RESP contributions per beneficiary; lifetime maximum of $7,200
  • An RESP terminates after year 35 of inception.