Last Updated: September 26, 2017 | Printable Version | 2015/2016 Handout

The information provided on this page is intended for general purposes only.  Care has been taken to ensure the information herein is accurate; however, no representation is made as to the accuracy thereof.  The information should not be relied upon to replace specific professional advice.

TAX RATES ON CORPORATE INCOME FOR 2017 AND 2016
CCPC Active Income Dec 2017 Dec 2016
  $           0—$   500,000 12.50% 13.50%
                 >  $  500,000 27.00% 27.00%
CCPC Investment Income Dec 2017 Dec 2016
Interest 50.67% 50.67%
Interest (net of refundable taxes) 20.00% 20.00%
Capital Gains 25.33% 25.33%
Capital Gains (net of refundable taxes) 10.00% 10.00%
PERSONAL TAX BRACKETS FOR SALARY AND DIVIDENDS IN 2017
Taxable Income Marginal Tax Rate on Salary Marginal Tax Rate on Ineligible Dividends Marginal Tax Rate on Eligible Dividends
$          0—$  45,916 25.00% 14.38% 0.00%
$ 45,916—$  91,831 30.50% 20.81% 7.56%
$ 91,831—$126,625 36.00% 27.25% 15.15%
$126,625—$142,353 38.00% 29.59% 17.91%
$142,353—$151,950 41.00% 33.10% 22.05%
$151,950—$202,600 42.00% 34.27% 23.43%
$202,600—$202,800 43.00% 35.44% 24.81%
$202,800—$303,900 47.00% 40.12% 30.33%
> $303,900 48.00% 41.29% 31.71%
RRSP LIMITS
RRSP Deduction Limit Prior Year Earned Income Required to Maximize RRSP
2018 $26,230 $145,722
2017 $26,010 $144,500
2016 $25,370 $140,944
CPP & EI Limits
Year CPP Limit Maximum Pensionable Earning EI—Employee  Limit EI—Employer Limit EI—Maximum Insurable Earnings
2017 $2,564.10 $55,300 $836.19 $1,170.67 $51,300
2016 $2,544.30 $54,900 $955.04 $1,337.06 $50,800
Note:  Employer and employees pay the same CPP amount.
Prescribed Interest Rates
Quarter 2017 2016 2015
1st quarter 5% 5% 5%
2nd quarter 5% 5% 5%
3rd quarter 5% 5% 5%
4th quarter 5% 5% 5%
(Note:  These rates are for overdue balances, refunds subtract 2%, corporate refunds and shareholder loans subtract 4%)
Automobile Amounts
Claim Description 2017 2016
Tax-exempt vehicle allowances
—first 5,000 km 54 cents/km 54 cents/km
—after 5,000 km 48 cents/km 48 cents/km
CCA threshold—Class 10.1 $30,000 $30,000
Interest expense limit $300/month $300/month
Leasing limit per month (subject to further limitations) $800/mo+taxes $800/mo+taxes
Operating expense benefit re: standby charge—general rate 25 cents/km 26 cents/km
PENSION SPLITTING WITH SPOUSES
65 or Older Under 65
Pension Annuity Payments Yes Yes
RRIF Payments Yes No *
RRSP Annuity Payments Yes No *
RRSP Lump-Sum Withdrawals No No
Canada Pension Plan Benefits No No
Old Age Security Benefits No No
* Except if received due to the death of a spouse
CLAWBACK OF OLD AGE SECURITY
Year Start of Clawback @ 15% of the amount by which Net income exceeds
2017 $74,788
2016 $73,756
COMMON PERSONAL TAX CREDITS
  Federal Alberta
2017 2016 2017 2016
Basic personal amount $11,635 $11,474 $18,690 $18,451
Spousal amount or eligible dependant amount (maximum) $11,635 $11,474 $18,690 $18,451
Age amount (maximum) $7,225 $7,125 $5,208 $5,141
Pension income amount (maximum) $2,000 $2,000 $1,439 $1,421
Disability amount $8,113 $8,001 $14,417 $14,232
Canada employment amount (maximum) $1,178 $1,161 $0 $0
*Note:  Above federal tax credits are applied at 15% and Alberta tax credits are applied at 10%.