Tax rates, contribution limits, deduction rates, and more are constantly changing (thanks Canada Revenue!). Lucky for you we’ve created a handy guide for you to follow, complete with all of 2018s rates.
Federal Income Tax Brackets & Tax Rates |
Alberta Personal Income Tax Brackets & Tax Rates |
|||
2018 Taxable Income |
2018 Tax Rates |
2018 Taxable Income |
2018 Tax Rates |
|
| first $46,605 | 15% | first $128,145 | 10% | |
| over $46,605 up to $93,208 | 21% | over $128,145 up to $153,773 | 12% | |
| over $93,208 up to $128,145 | 27% | over $153,773 up to $205,031 | 13% | |
| over $128,145 up to $144,489 | 30% | over $205,031 up to $307,547 | 14% | |
| over $144,489 up to $153,773 | 33% | over $307,547 | 15% | |
| over $153,773 up to $205,031 | 35% | |||
| over $205,031 up to $205,842 | 36% | |||
| over $205,842 up to $307,547 | 40% | |||
| over $307,547 | 42% | |||
Note: Determine which bracket you fall under and combine your rates to determine your total tax rate.
Corporate Tax Rates |
|
Active Business Income |
Rate |
| Up to $500,000 | 12.5% |
| Over $500,000 | 27% |
| Investment income | 50.7% |
CRA Prescribed Interest Rates
Rates calculated on interest free and low-interest loans to employees and shareholders:
CRA Interest Rates |
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Quarter |
2017 |
2018 |
| Q1 | 1% | 1% |
| Q2 | 1% | 2% |
| Q3 | 1% | |
| Q4 | 1% |
Note: CRA pays interest at the prescribed rate, plus 2% and charges interest at the prescribed rate, plus 4%.
Contribution Rates and Limits
- RRSP: $26,500 for 2018
- TFSA: $5,500 with a lifetime limit of $57,500 as of January 1, 2018
- EI:
- $858.22 total premium for employees
- $51,700 maximum insurable earnings
- $1,021.51 employer maximum
- CPP:
- $55,900 maximum pensionable earnings, with a
- $2,593.80 total maximum contribution for employees, and
- $5,187.60 for self-employed
Old Age Security
The new claw back rate is set to 15%.
You must repay part of your OAS if net income exceeded $75,910 in 2018 ($74,788 in 2017).
Vehicle Rates
- Mileage:
- 2018: $0.55/km on first 5,000 km driven, $0.49/km thereafter
- 2017: $0.54/km on first 5,000 km driven, $0.48/km thereafter
- Purchase Ceiling:
- Passenger vehicles maximum claim cost: $30,000 plus sales tax
- Leasing:
- Deductible: $800/month plus sales tax
- Interest:
- Maximum interest deduction: $300/month on loans of vehicles bought after 2015
For questions directly concerning your business contact a KBH business specialist: info@kbh.ca