Tax System Indexation
On January 1, 2016, all indexed personal income tax amounts, including tax bracket thresholds and amounts used to calculate non-refundable tax credits, were adjusted by 1.3%. The Canada Child Tax Benefit and the goods and services tax credit will take effect July 1, 2016.
For 2016 the federal tax bracket thresholds are:
- 15% for taxable income between $0.00 and $45,282
- 20.5% for taxable income above $45,282
- 26% for taxable income above $90,563
- 29% for taxable income above $140,388; and,
- 33% for taxable income above $200,000
CPP/QPP Rates and Maximums
Year’s Maximum Pensionable Earnings $54,900.00
Year’s Basic Exemption (by pay period type):
- Annual $3,500.00
- Monthly (12) $291.66
- Semi-Monthly (24) $145.83
- Bi-Weekly (26) $134.61
- Weekly (52) $67.30
Maximum Contributory Earnings $51,400.00
- Contribution Rate — Employee/Employer 4.95%
- Contribution Rate — Self-Employed 9.9%
- Maximum Contribution — Employee/Employer $2,544.30
- Maximum Contribution — Self-Employed $5,088.60
Employment Insurance Rates and Maximums
Maximum Annual Insurable Earnings $50,800.00
- Premium Rate (Employee) 1.88%*
- Premium Rate (Employer, 1.4 x Employee) 2.632%*
- Annual Maximum Premium (Employee) $955.04*
- Annual Maximum Premium (Employer) $1,337.06*
*Unless a reduced premium rate applies
TD1—Personal Tax Credit Return (Federal) Rates and Maximums
Basic Personal Amount $11,474.00
- Eligible Dependant or Spouse or Common-Law Partner Amount $11,474.00
- Canada Child Tax Benefit-Base Benefit $1,471.00
- Pension Income Amount $2,000.00
- Age 65 Amount $7,125.00
- Disability Amount $8,001.00
- Caregiver Amount $4,667.00
- Education Amount—Full Time $400.00/month
- Education Amount—Part Time $120.00/month
RRSP Contribution Deadline The RRSP Contribution Deadline is February 29, 2016.
TFSA Limit The Tax Free Savings Account limit is $5,500 for 2016.
To discuss your 2016 tax planning, please talk to your Padgett Business Services’ representative.