TAX & RESOURCE CENTRE

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.

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

TFSA contribution limit:

An overview of what you can contribute to your Tax Free Savings Account, including the annual TFSA dollar limit.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account/contributions.html#tfscntbtnrm

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 (2017)

The federal government’s budget was released on March 22, 2017. Refer to the attached commentary on the tax impacts of the budget.

Federal Budget Commentary 2017

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.

Ontario Budget Commentary 2017

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

https://www.cpacanada.ca/en/connecting-and-news