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Koroll & Company Blog

Tax Brackets and Non-Refundable Tax Credits: What Individuals Need to Know for 2020

[fa icon="calendar"] Mar 3, 2020 10:58:00 AM / by Allen Koroll

We are three months into 2020 and while many Canadians are still concerned with their 2019 tax return, we must also remember how important it is to plan and strategize our taxes for the year ahead. 

The first step in this process is determining the applicable tax brackets, credit rates, contributions and premiums that will apply to you and your specific situation in 2020.

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 Level 

Federal Tax Bracket

$12,298 - $48,535

15%

$48,536 - $97,069

20.5%

$97,070 - $150,473

26%

$150,474 - $214,368

29%

Above $214,368

33%

 

Federal individual tax credits 

The following non-refundable tax credits are available to taxpayers, who meet the eligibility requirements, in 2020. Note that the claimable tax credit is equal to 15% of the credit amount.

Tax Credit Credit Amount Tax Credit
Basic Personal Amount $12,298 $1,844.70
Spouse or Common Law Partner Amount $12,298 $1,844.70
Eligible Dependent Amount $12,298 $1,844.70
Age Amount $7,637

$1,145.55

Canada Employment Amount (max) $1,245 $186.75
Disability Amount $8,576 $1,286.40
Adoption Expense Credit $16,563 $2,484.45

 

Thresholds and limitations

  • Medical Expense Tax Credit Threshold $2,397
  • Net Income Threshold for Erosion of Age Amount $38,508
  • Old Age Security Income Recovery Threshold $79,054

For more information on 2020 Tax Credits not listed here, please contact our team of chartered professional accountants today. We would be happy to answer any questions that you may have. 


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The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.



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Topics: CRA

Allen Koroll

Written by Allen Koroll