Toolkit


Our Tools


Tool Kit

 

Covid-19 Information

 

Income Tax/CRA

 

2020/2021 tax brackets, combined British Columbia and Federal rates:

 

2021 Taxable Income Tax Rate 2020 Taxable Income Tax Rate
First $42,184 20.06% First $41,725 20.06%
over $42,184 up to $49,020 22.70% over $41,725 up to $48,535 22.70%
over $49,020 up to $84,369 28.20% over $48,535 up to $83,451 28.20%
over $84,369 up to $96,866 31.00% over $83,451 up to $95,812 31.00%
over $96,866 up to $98,040 32.79% over $95,812 up to $97,069 32.79%
over $98,040 up to $117,623 38.29% over $97,069 up to $116,344 38.29%
over $117,623 up to $151,978 40.70% over $116,344 up to $150,473 40.70%
over $151,978 up to $159,483 44.02% over $150,473 up to $157,748 43.70%
over $159,483 up to $216,511 46.12% over $157,748 up to $214,368 45.80%
over $216,511 up to $222,420 49.80% over $214,368 up to $220,000 49.80%
over $222,420 53.5% over $220,000 55.50%
BC Basic Personal Amount Tax Rate BC Basic Personal Amount Tax Rate
$11,070 5.06% $10,949 5.06%

 

Federal Basic Personal Amount Tax Rate Federal Basic Personal Amount Tax Rate
$13,808 15% $13,229 15%

 

« Back to top

 

Canada Pension Plan

 

The maximum pensionable CPP earnings level for 2021 has increased by $2,900 to $61,600. Contributors who earn more than the $61,600 ceiling on pensionable earnings in the year 2021 are not required or allowed to contribute more to the CPP.

 

The basic exemption remains at $3,500.

 

The employee and employer contribution rates for 2021 will be 5.45%—up from 5.25% in 2020, and the self-employed contribution rate will be 10.9%—up from 10.5% in 2020. 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 2021 will be $3,166.45 each and the maximum self-employed contribution will be $6,332.90. The maximums in 2020 were $2,898.00 and $5,796.00. (via Canada.ca)

 

« Back to top

 

Employment Insurance

 

The maximum EI earnings for 2021 have increased to $56,300. Contributors who earn more than the $56,300 ceiling on insurable earnings in the year 2021 are not required to contribute more to EI.

 

Employee contribution rates for the year 2021 will remain at 1.58%. The maximum employee contribution to the plan in 2021 is now $889.54, up from $856.36 in 2020.

 

« Back to top

 

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
2011 $22,450 $22,970
2012 $22,970 $23,820
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 TBD

« Back to top

 

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

« Back to top

 

TFSA (Tax-Free Savings Account)

 

  • Limits: $6,000 for 2021, remaining the same as 2019 and 2020.
  • 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.

« Back to top

 

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.

 

« Back to top