Taxes can be confusing at the best of times - even without updates and changes. Making sure you’re aware of changes and yearly allowances can really help you stay on top of your financial situation. We’ve put together this easy to use chart to help.
|
|
2018 | 2019 |
|---|---|---|
|
Federal Small Business Tax |
10.0% | 9.0% |
|
Max RRSP Contribution |
$26,230 | $26,500 |
|
Max TFSA Limit |
$5,500 | $6,000 |
|
Canada Child Limit - under 6 yrs |
$6,496 | $6,639 |
|
Canada Child Limit - 6 to 17 yrs |
$5,481 | $5,602 |
|
Child Care Expense Deductions - under 7 yrs |
$8,000 | $8,000 |
|
Child Care Expense Deductions - 7 to 16 yrs |
$5,000 | $5,000 |
|
Child Care Expense Deductions - Children eligible for disability tax credit |
$11,000 | $11,000 |
|
Max EI Insurable Earnings |
$51,700 | $53,100 |
|
Lifetime Capital Gains Exemption |
$848,252 | $866,912 |
|
Medical Expenses Threshold |
3.0% of net income to a max of $2,302 | 3% of net income to a max of $2,352 |
|
Age Amount (for people 65 yrs or older December 31) |
$7,333 | $7,494 |
|
Disability Amount |
$8,235 | $8,416 |
|
Univeral Child Care Benefit, Children's Fitness Tax Credit, and Children's Arts Tax Credit have all been phased out. |
You can see from the chart below that federal income tax bracket amounts have changed but the rates for each bracket have not.
| 2019 Federal Income Tax Brackets | Tax Rate |
|---|---|
| $0 - $47,630 | 15.0% |
| $47,631 - $95,259 | 20.5% |
| $95,260 - $147,667 | 26.0% |
| $147,668 - $210,371 | 29.0% |
| $210,372 + | 33.0% |
Corporate tax incentives
- There are no corporate tax cuts in Canada, instead there is a new package of tax write-offs. Here are the highlights: Manufacturers and processors that acquire new machinery and equipment after Nov. 20, 2018, will immediately be eligible to write-off the full cost in their tax returns for the year that new equipment is put into use.
- Businesses buying certain kinds of clean energy equipment after Nov. 20, 2018, will also be eligible to fully write off those costs as part of a push to get more businesses investing in clean technology.
- Companies can deduct triple the amount from their tax returns for capital investments in their first year of use through what will be known as the Accelerated Investment Incentive.
We hope you find this collection of information helpful. Not everything here will be relevant to you. Please speak with your accountant about your personal tax situation.
Looking for more information on taxes? Check out our article Minimize Your Tax Footprint.
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