Corporate income tax rates:
The 2017 and 2018 Canadian corporate income tax rates table shows the corporate tax rate on various types of income earned within a Canadian corporation.
TAX & RESOURCE CENTRE
| General income | ||
| 2017 | 2018 | |
| Federal | 15.00% | 15.00% |
| Ontario | 11.50% | 11.50% |
| Combined | 26.50% | 26.50% |
| Income eligible for small business deduction | ||
| 2017 | 2018 | |
| Federal | 10.50% | 10.00% |
| Ontario | 4.50% | 3.50% |
| Combined | 15.00% | 13.50% |
| Investment income | ||
| 2017 | 2018 | |
| Federal | 38.67% | 38.67% |
| Ontario | 11.50% | 11.50% |
| Combined | 50.17% | 50.17% |
Personal income tax rates:
The 2018 personal marginal income tax rate for various types of income shows the additional tax you will pay on each dollar of income earned when you already have income over a certain threshold.
| Taxable Income Greater than | Salary & Interest | Actual Capital Gains | Actual Canadian Dividends (ineligible) | Actual Canadian Dividends (eligible) |
| $220,000 | 53.53% | 26.76% | 46.84% | 39.34% |
| $205,842 | 51.97% | 25.98% | 45.03% | 37.19% |
| $150,000 | 47.97% | 23.98% | 40.39% | 31.67% |
| $144,489 | 46.41% | 23.20% | 38.58% | 29.52% |
| $93,208 | 43.41% | 21.70% | 35.10% | 25.38% |
| $89,131 | 37.91% | 18.95% | 28.72% | 17.79% |
| $85,923 | 33.89% | 16.95% | 24.06% | 12.24% |
| $75,657 | 31.48% | 15.74% | 21.26% | 8.92% |
| $46,605 | 29.65% | 14.83% | 19.14% | 6.39% |
| $42,960 | 24.15% | 12.08% | 12.76% | 0.00% |
| $11,809 | 20.05% | 10.03% | 5.76% | 0.00% |
| $10,354 | 5.05% | 2.53% | 0.00% | 0.00% |
Payroll deduction information
The 2017 and 2018 payroll deduction information shows the rates, maximums and exemptions to be used when calculating payroll deductions.
| 2017 | 2018 | |
| Employment Insurance (EI) | ||
| Employee withholding rate | 1.63% | 1.66% |
| Employer contribution rate | 2.28% | 2.32% |
| Maximum earnings subject to EI | $51,300 | $51,700 |
| Canada Pension Plan (CPP) | ||
| Employee withholding rate | 4.95% | 4.95% |
| Employer contribution rate | 4.95% | 4.95% |
| Maximum earnings subject to CPP | $55,300 | $55,900 |
| Annual exemption | $3,500 | $3,500 |
| Workers Safety and Insurance Board (WSIB) | ||
| Maximum earnings subject to WSIB | $88,500 | $90,300 |
| Employer Health Tax (EHT) | ||
| Maximum employer contribution rate | 1.95% | 1.95% |
| Maximum payroll exemption available | $450,000 | $450,000 |
| Personal Tax Exemptions | ||
| Federal | $11,635 | $11,809 |
| Ontario | $10,171 | $10,354 |
SALES TAX RATES BY PROVINCE
| Province | Type of Sales Tax | Federal Rate (GST) | Provincial Rate (PST / RST / QST) | Harmonized Rate (HST) |
| Alberta | GST | 5% | – | – |
| British Columbia | GST + PST | 5% | 7% | – |
| Manitoba | GST + RST | 5% | 8% | – |
| New Brunswick | HST | – | – | 15% |
| Newfoundland and Labrador | HST | – | – | 15% |
| Northwest Territories | GST | 5% | – | – |
| Nova Scotia | HST | – | – | 15% |
| Nunavut | GST | 5% | – | – |
| Ontario | HST | – | – | 13% |
| Prince Edward Island | HST | – | – | 15% |
| Quebec | GST + QST | 5% | 9.975% | – |
| Saskatchewan | GST + PST | 5% | 6% | – |
| Yukon | GST | 5% | – | – |
| Last updated: January 3, 2018 | ||||
The provinces of Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island have harmonized their provincial sales tax with the federal Goods and Service Tax (“GST”) with the resulting sales tax being referred to as the Harmonized Sales Tax (“HST”). Many of the other provinces administer their own retail sales tax regime. While the HST is a value added tax, many of the provincial retail sales taxes are not. Refer to the attached current sales tax rates by Canadian province.
The General Guide for GST / HST Registrants is published by Canada Revenue Agency and provides answers to many general sales tax questions. https://www.canada.ca/content/dam/cra-arc/migration/cra-arc/E/pub/gp/rc4022/rc4022-17e.pdf
Minimum wage (Ontario)
The minimum wage is the lowest wage rate an employer can pay an employee. An overview of the minimum wage rate in Ontario is located here. https://www.ontario.ca/document/your-guide-employment-standards-act/minimum-wage#section-0
RRSP contribution limit:
An overview of what you can contribute to an RRSP.. https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/contributing-a-rrsp-prpp/contributions-affect-your-rrsp-prpp-deduction-limit.html
The annual RRSP limits are provided. https://www.canada.ca/en/revenue-agency/services/tax/registered-plans-administrators/pspa/mp-rrsp-dpsp-tfsa-limits-ympe.html
TFSA contribution limit:
An overview of what you can contribute to your Tax Free Savings Account, including the annual TFSA dollar limit.
Foreign exchange rates (Bank of Canada)
The Bank of Canada maintains a database of foreign exchange rates, which can be accessed here. http://www.bankofcanada.ca/rates/exchange/
Interest rates (Bank of Canada)
The Bank of Canada maintains a database of interest rates, which can be accessed here. http://www.bankofcanada.ca/rates/interest-rates/
Federal budget commentary (2018)
The federal government’s budget was released on February 27, 2018. Refer to the attached commentary on the tax impacts of the budget.
Ontario budget commentary (2017)
The Ontario government’s budget was released on April 27, 2017. Refer to the attached commentary on the tax impacts of the budget.
Accounting Forms and Links
Accounting Standards Board (AcSB) updates
The Accounting Standards Board (AcSB) is an independent body with the authority to establish accounting standards for use by all Canadian entities outside the public sector. The AcSB serves the public interest by establishing standards for financial reporting by all Canadian private sector entities and by contributing to the development of internationally accepted financial reporting standards.
http://www.frascanada.ca/accounting-standards-board/index.aspx
Auditing and Assurance Standards Board (AASB) updates
The Auditing and Assurance Standards Board (AASB) establishes standards for assurance and related services engagements. The AASB contributes to the development of International Standards on Auditing (ISAs), which it adopts as Canadian Auditing Standards (CASs), by participating in consultations and activities of the International Auditing and Assurance Standards Board (IAASB) to ensure Canadian entities’ auditing needs are considered.
http://www.frascanada.ca/auditing-and-assurance-standards-board/index.aspx
Accounting Standards for Not-for-Profit Organizations updates
http://www.frascanada.ca/standards-for-not-for-profit-organizations/index.aspx
Canadian Auditing Standards (CASs) updates
http://www.frascanada.ca/canadian-auditing-standards/index.aspx
CPA Canada Magazine, Connecting and News