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%. | ||||