Financial Services

Financial Services

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2021 Tax Rate Changes

Canada Pension Plan (CPP) restarts each year in January 

Description 2021 2020 2019 2018

Maximum pensionable earnings

61,600.00

58,700.00

57,400.00

55,900.00

Basic exemption amount

3,500.00

3,500.00 3,500.00 3,500.00

CPP employee contribution rate

5.45%

5.25%

5.10%

4.95%

CPP maximum employee contribution

 3,166.45

 2,898.00

 2,748.90

2,593.80

Canada Pension Plan (CPP) Enhancements 2019 to 2023

From 2019 to 2023, the contribution rate for employees will gradually increase by one percentage point (from 4.95% to 5.95%) on earnings between $3,500 and the original earnings limit.

2018: 4.95%

2019: 5.10%

2020: 5.25%

2021: 5.45%

2022: 5.70%

2023: 5.95%

For more information, please refer to the Canada Revenue Agency website: 

https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-enhancement.html

 

Employment Insurance (EI) restarts each year in January

Description 2021 2020 2019 2018
Maximum annual insurable earnings 

56,300.00

54,200.00

53,100.00

51,700.00

EI employee rate

1.58% 1.58% 1.62% 1.66%

EI maximum employee premium

889.54

856.36

860.22

858.22

 

Personal Tax Credits Return (TD1 Federal)

Description 2021

Oct to Dec 2020

Jan to Sept 2020

2019

2018

TD1 Federal Basic exemption

13808 *

13229

12298

12069

11809

    

* Basic personal amount – Every resident of Canada can enter a basic personal amount of $13,808. However, if your net income from all sources will be greater than $151,978 and you enter $13,808, you may have an amount owing on your income tax and benefit return at the end of the tax year. If your income from all sources will be greater than $151,978, you have the option to calculate a partial claim. To do so, fill in the appropriate section of Form TD1-WS, Worksheet for the 2021 Personal Tax Credits Return

 

Personal Tax Credits Return (TD1 Ontario)

Description 2021 2020 2019 2018

TD1 ON  basic exemption

10880

10783

10582

10354

 

CRA Federal Personal Tax Credit Return (TD1 Federal)

https://www.canada.ca/en/revenue-agency/services/forms-publications/td1-personal-tax-credits-returns/td1-forms-pay-received-on-january-1-later/td1.html

CRA Personal Tax Credit Return (TD1- WS Worksheet)

https://www.canada.ca/en/revenue-agency/services/forms-publications/td1-personal-tax-credits-returns/td1-forms-pay-received-on-january-1-later/td1-ws.html

CRA Provincial Personal Tax Credit Return (TD1 ON)

https://www.canada.ca/en/revenue-agency/services/forms-publications/td1-personal-tax-credits-returns/td1-forms-pay-received-on-january-1-later/td1on.html