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%. |