- Income Tax/CRA
- Canada Pension Plan
- Employment Insurance
- Permitted CRA Withdrawals from an RRSP
- TFSA (Tax-Free Savings Account)
- RESP (Registered Education Savings Plan)
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|
|Federal Basic Personal Amount||Tax Rate||Federal Basic Personal Amount||Tax Rate|
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)
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.
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|
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
- 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.
- 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.