- Income Tax/CCRA
- Canada Pension Plan
- Employment Insurance
- Permitted CCRA Withdrawals from an RRSP
- TFSA (Tax-Free Savings Account)
- RESP (Registered Education Savings Plan)
2018/2019 tax brackets, combined British Columbia and Federal rates:
|2019 Taxable Income||Tax Rate||2018 Taxable Income||Tax Rate|
|First $40,707||20.06%||first $39,676||20.06%|
|over $40,707 up to $47,630||22.70%||over $39,676 up to $46,605||22.70%|
|over $47,630 up to $81,146||28.20%||over 46,605 up to $79,353||28.20%|
|over $81,146 up to $93,476||31.00%||over $79,353 up to $91,107||31.00%|
|over $93,476 up to $95,259||32.79%||over $91,107 up to $93,208||32.79%|
|over $95,259 up to $113,506||38.29%||over $93,208 up to $110,630||38.29%|
|over $113,506 up to $147,667||40.70%||over $110,630 up to $144,489||40.70%|
|over $147,667 up to $153,900||43.70%||over $144,489 up to $150,000||43.70%|
|over $153,900 up to $210,371||45.80%||over $150,000 up to $205,842||45.80%|
|Over $210,371||49.80%||Over $205,842||49.80%|
|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 2019 has increased by $1,500 to $57,400. Contributors who earn more than the $57,400 ceiling on pensionable earnings in the year 2019 are not required or allowed to contribute more to the CPP.
2019 is the first year of the CPP enhancement initiative and both employee and employer contribution rates will increase from 4.95% up to 5.1%. The basic exemption remains at $3,500. The maximum employee and employer contributions to the plan will increase to $2,748.90 for a total of $5,497.80. (2018 amounts were $2,593.80 and $5,187.60)
The self-employed maximum contribution rate increases to 10.2%, up from 2018’s rate of 9.9%. The maximum self-employed contribution also increases to $5,187.60.
The maximum EI earnings for 2019 have increased to $53,100. Contributors who earn more than the $53,100 ceiling on insurable earnings in the year 2019 are not required to contribute more to EI.
Employee contribution rates for the year 2019 will decrease from $1.66 to $1.62. The maximum employee contribution to the plan in 2018 is now $860.22, up from $855.22 in 2018.
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: $25,000 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 will be subject to indexation.
- 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.