Now that the new year has come, it is time to start planning for the tax year ahead. That means you need to be aware of the applicable tax brackets, credit rates, contributions and premiums that will apply to you and your specific situation in Ontario in 2022.
For your convenience, we’ve gathered the most important tax-related information for 2022 and listed it below.Federal tax rates and brackets
The following are the 2022 tax rates that individuals will have to pay based on their Taxable Income Level:
Income Level |
Federal Tax Bracket |
$14,398 - $50,197 |
15% |
$50,198 - $100,392 |
20.5% |
$100,393 - $155,625 |
26% |
$155,626 - $221,708 |
29% |
Above $221,708 |
33% |
Federal individual tax credits
The following non-refundable tax credits are available to taxpayers who meet the eligibility requirements in 2022. Note that the claimable tax credit is equal to 15% of the credit amount.
Tax Credit |
Credit Amount |
Tax Credit |
Basic Personal Amount |
$14,398 |
$2,160 |
Spouse or Common Law Partner Amount |
$14,398 |
$2,160 |
Eligible Dependent Amount |
$14,398 |
$2,160 |
If you have an income over $155,625, the above amounts may be different.
Tax Credit |
Credit Amount |
Tax Credit |
Age Amount |
$7,898 |
$1,185 |
Canada Employment Amount (max) |
$1,287 |
$193 |
Disability Amount |
$8,870 |
$1,331 |
Disability Supplement for taxpayers under 18 |
$5,174 |
$776 |
Adoption Expense Credit |
$17,131 |
$2,569.65 |
Caregiver Credit – under 18 |
$2,350 |
$353 |
Caregiver Amount – over 18 |
$7,525 |
$1,129 |
Thresholds and limitations
Maximum RRSP Contribution Limit: $29,210
TFSA Limit: $6,000
Maximum Pensionable Earning for CPP: $64,900 with a basic exemption of $3,500
Maximum Insurable Earnings for EI: $60,300
Lifetime Capital Gains Exemption: $913,630
Medical Expense Tax Credit Threshold: $2,479
Net Income Threshold for Erosion of Age Amount: $39,826; Eliminated at $92,479
Child Care/Attendant Care Threshold for Erosion of Disability Supplement for Taxpayers Under 18: $3,030; Eliminated at $8,204
Net Income Threshold for Erosion of Caregiver Amount: $17,670; Eliminated at $25,195
Old Age Security Income Recovery Threshold: $81,761
We hope this helps you better plan your 2022 tax year. For more information on 2022 tax credits, please contact the Koroll & Company team of chartered professional accountants today. We would be happy to answer any questions that you may have.