While many Canadians are focused on filing their 2018 tax return, it is important to also remember to plan and strategize for the year ahead.
To do this, you must first make note of the applicable tax brackets, credit rates and limitations, contributions and premiums that will apply to you and your specific situation in 2019.
For your convenience, Koroll & Company has gathered the most popular tax related information and listed it below.
Federal Tax Rates and Brackets
The following are the tax rates individuals will have to pay based on their Taxable Income Level.
Income Levels and their Federal Tax Rate
- $12,069 to $47,630 - 15%
- $47,631 to $95,259 - 20.5%
- $95,260 to $147,667 - 26%
- $147,668 to $210,371 - 29%
- Above $210,371 - 33%
Federal Individual Tax Credits
The following non-refundable tax credits are available to taxpayers, who meet the eligibility requirements, in 2019. Note that the claimable tax credit is equal to 15% of the credit amount.
| Tax Credit | Credit Amount | Tax Credit |
| Basic Personal Amount | $12,069 | $1,810.35 |
| Spouse or Common Law Partner Amount | $12,069 | $1,810.35 |
| Eligible Dependent Amount | $12,069 | $1,810.35 |
| Age amount | $7,494 | $1,124.10 |
| Canada Employment Amount (max) | $1,222 | $183.30 |
| Disability Amount | $8,416 | $1,262.40 |
| Adoption Expense Credit | $16,255 | $2,438.25 |
Thresholds and Limitations
- Medical Expense Tax Credit Threshold - $2,352
- Maximum Refundable Medical Expense Supplement - $1,248
- Net Income Threshold for Erosion of Age Amount - $37,790
- Old Age Security Income Recovery Threshold - $77,580
Canada Pension Plan (CPP) Contributions
The Canada Pension Plan (CPP) is a pension program that provides partial replacement of earnings to contributors and their families during retirement, or in case of disability or death.
The CPP contribution rate for 2019 has increased from 4.95% to 5.1% of pensionable earnings, up to maximum earnings of $57,400 and is paid by both the employer and the employee.
The basic exemption amount, which is the amount at which CPP begins to be deducted, is unchanged at $3,500.
The maximum possible contribution for an employer and employee is $2,748.90 each ([$57,400-$3,500] x 5.1%). Self-employed individuals will have to contribute $5,497.80 (the aggregate of the employee and employer portions).
Employment Insurance (EI) Premiums
Employment Insurance (EI) provides temporary income support to unemployed Canadians. EI contributions are made by both the employee and the employer.
The 2019 EI premium for employees is 1.62% of earnings, up to a maximum of $53,100. This results in a premium of $860.22 ($53,100 x 1.62%).
The employer EI premium remains unchanged at 1.4 times the employee contribution, resulting in a maximum premium of $1204.31 ($860.22 x 1.4).
For more information on relevant 2019 tax rates, tax credits, EI premiums and CPP contributions, contact us today! We look forward to helping you strategize your 2019 tax return.
