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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

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