Tax Facts

Payroll Costs

Benefits and allowances

Many taxable allowances and benefits are subject to CPP and EI deductions. Furthermore, GST/HST has to be included in the value of the taxable benefit for income tax purposes.

Payroll Remittance Due Dates

Generally, payroll remittance due on or before the 15th of the following month after wages are paid except the following two accelerated payroll remitters:

1. Threshold 1

   Employers, including those with associated companies and multiple payroll accounts, who had a total average monthly withholding amount of $15,000 to $49,999.99 two calendar years ago must remit payroll remittance by the following dates:

   • for remuneration paid before the 16th day of the month, by the 25th day of the same month.
   • for remuneration paid after the 15th day of the month but before the first day of the following month, by the 10th day of the following month.
2. Threshold 2

   Employers, including those with associated companies and multiple payroll accounts, who had a total average monthly withholding amount of $50,000 over more two calendar years ago must remit payroll remittance to a Canadian financial institution no later than the 3rd working day (excluding Saturdays, Sundays and public holidays) after the end of the following periods:

   • from the 1st through the 7th day of the month;
   • from the 8st through the 14th day of the month;
   • from the 15th through the 21st day of the month;
   • from the 22nd through the last day of the month.

Federal/British Columbia Base Amount and Maximum RRSP Contribution Limit

The threshold column above contains a lower limit and a upper limit (separated by a slash "/"). Within the range defined by these limits, the amount of spouse amount will be reduced by the amount of income the spouse or the dependent earned. Under the lower limit, there is no reduction of spouse amount, whereas the spouse amount ceases to exist once the upper limit is exceeded.

The maximum RRSP contribution limit is created by 18% of the earned income. At the point of writing, there is no limit restricting the deduction of accrued unused RRSP limit from taxable income in a year.

Federal and B.C. Corporate Income Tax Rates, Filing and Payment Due Date

Both federal and provincial/territorial governments levy tax on worldwide income earned by individuals and corporations at different marginal tax rates for various taxable income level. In this progressive tax regime, marginal income tax rates and taxable income brackets could change each year after the budgets are announced. Starting from 2009, these rates (British Columbia's only) are summarized in the following table.

Personal Income Tax Rates	Corporate Income Tax Rates
Federal and provincial income taxes are subject to exemption of the base amounts indicated in the table under the heading "Federal/British Columbia Base Amount and Maximum RRSP Contribution Limit". Please click the year below to view rates in that year. 2009 Federal tax rates effective April 1, 2009, taxable income under $10,375 is tax exempt 15% on the portion of taxable income between $10,376 and $40,726, + 22% on the next $40,726 of taxable income (on the portion of taxable income between $40,726 and $81,452), + 26% on the next $44,812 of taxable income (on the portion of taxable income between $81,452 and $126,264), + 29% of taxable income over $126,264. British Columbia taxable income under $9,373 is tax exempt 5.06% on the first $35,716 of taxable income, + 7.7% on the next $35,717, + 10.5% on the next $10,581, + 12.29% on the next $17,574, + 14.7% on the amount over $99,588 2010 Federal tax rates 15% on the first $40,970 of taxable income, + 22% on the next $40,971 of taxable income (on the portion of taxable income between $40,970 and $81,941), + 26% on the next $45,080 of taxable income (on the portion of taxable income between $81,941 and $127,021), + 29% of taxable income over $127,021. British Columbia 5.06% on the first $35,859 of taxable income, + 7.7% on the next $35,860, + 10.5% on the next $10,623, + 12.29% on the next $17,645, + 14.7% on the amount over $99,987 2011 Federal tax rates 15% on the first $41,544 of taxable income, + 22% on the next $41,544 of taxable income (on the portion of taxable income between $41,544 and $83,088), + 26% on the next $45,712 of taxable income (on the portion of taxable income between $83,088 and $128,800), + 29% of taxable income over $128,800. British Columbia 5.06% on the first $36,146 of taxable income, + 7.7% on the next $36,147, + 10.5% on the next $10,708, + 12.29% on the next $17,786, + 14.7% on the amount over $100,787 2012 Federal tax rates 15% on the first $42,707 of taxable income, + 22% on the next $42,707 of taxable income (on the portion of taxable income over $42,707 up to $85,414), + 26% on the next $46,992 of taxable income (on the portion of taxable income over $85,414 up to $132,406), + 29% of taxable income over $132,406. British Columbia 5.06% on the first $37,013 of taxable income, + 7.7% on the next $37,015, + 10.5% on the next $10,965, + 12.29% on the next $18,212, + 14.7% on the amount over $103,205 2013 Federal tax rates 15% on the first $43,561 of taxable income, + 22% on the next $43,562 of taxable income (on the portion of taxable income over $43,561 up to $87,123), + 26% on the next $47,931 of taxable income (on the portion of taxable income over $87,123 up to $135,054), + 29% of taxable income over $135,054. British Columbia 5.06% on the first $37,568 of taxable income, + 7.7% on the next $37,570, + 10.5% on the next $11,130, + 12.29% on the next $18,486, + 14.7% on the amount over $104,754 2014 Federal tax rates 15% on the first $43,953 of taxable income + 22% on the next $43,954 of taxable income (on the portion of taxable income between $43,954 and $87,907) + 26% on the next $48,363 of taxable income (on the portion of taxable income between $87,908 and $136,270) + 29% of taxable income over $136,270. British Columbia 5.06% on the first $37,568 of taxable income, + 7.7% on the income between $37,569 to $75,138 + 10.5% on the income between $75,139 to $86,268, + 12.29% on the income between $86,269 to $104,754, + 14.70% on the income between $104,755 to $150,000, + 16.80% on the amount $150,001 and above.   2015 Federal tax rates 15% on the first $44,701 of taxable income, + 22% on the next $44,700 of taxable income (on the portion of taxable income over $44,701 up to $89,401), + 26% on the next $49,185 of taxable income (on the portion of taxable income over $89,401 up to $138,586), + 29% of taxable income over $138,586. British Columbia 5.06% on the first $37,869 of taxable income, + 7.7% on the next $37,871, + 10.5% on the next $11,218, + 12.29% on the next $18,634, + 14.7% on the next $45,458, + 16.8% on the amount over $151,050   2017 Federal tax rates 15% on the first $45,916 of taxable income, + 20.5% on the next $45,915 of taxable income (on the portion of taxable income over $45,916 up to $91,831), + 26% on the next $50,522 of taxable income (on the portion of taxable income over $91,831 up to $142,353), + 29% on the next $60,447 of taxable income (on the portion of taxable income over $142,353 up to $202,800), + 33% of taxable income over $202,800 British Columbia 5.06% on the first $38,898 of taxable income, + 7.7% on the next $38,899, + 10.5% on the next $11,523, + 12.29% on the next $19,140, + 14.7% on the amount over $108,460 2019 Federal tax rates 15% on the first $47,630 of taxable income, + 20.5% on the next $47,629 of taxable income (on the portion of taxable income over $47,630 up to $95,259), + 26% on the next $52,408 of taxable income (on the portion of taxable income over $95,259 up to $147,667), + 29% on the next $62,704 of taxable income (on the portion of taxable income over $147,667 up to $210,371), + 33% of taxable income over $210,371 British Columbia 5.06% on the first $40,707 of taxable income, + 7.7% on the next $40,709, + 10.5% on the next $12,060, + 12.29% on the next $20,030, + 14.7% on the amount over $40,394 + 16.8% on the amount over $153,900 2020 2021-22 2023 2024 Federal tax rates 15% on the first $55,867 of taxable income, + 20.5% on the next $55,866 of taxable income (on the portion of taxable income over $55,867 up to $111,733), + 26% on the next $61,472 of taxable income (on the portion of taxable income over $111,733 up to $173,205), + 29% on the next $73,547 of taxable income (on the portion of taxable income over $173,205 up to $246,752), + 33% on the amount over $246,752 British Columbia 5.06% on the first $47,937 of taxable income, + 7.7% on the next $47,938 (on the portion of taxable income over $47,937 up to $95,875), + 10.5% on the next $14,201 (on the portion of taxable income over $95,875 up to $110,076), + 12.29% on the next $20,030 (on the portion of taxable income over $110,076 up to $133,664), + 14.7% on the next $47,568 (on the portion of taxable income over $133,664 up to $181,232), + 16.8% on the next $71,520 (on the portion of taxable income over $181,232 up to $252,752), + 20.5% on the amount over $252,752 2025 2026	Federal and Provincial Corporate Tax Rates 2024 2025 2026
Income Tax Return Filing Due Date [Note that Income Tax Return Filing Due Date and Tax Balance Due Date are different.]
Personal income tax returns are generally due on the 30th of April each year. For self-employed persons, if the taxpayer or his/her spouse or common-law partner carried on a business in the following year (other than a business whose expenditures are primarily in connection with a tax shelter), personal tax return has to be filed on or before 15 June the following year. However, if you have a balance owing, you still have to pay it on or before 30 April the following year. Final Return for Deceased Persons Generally, the final return is due on or before the following dates: Period when death occurred Due date for the final return January 1 to October 31 April 30 of the following year November 1 to December 31 Six months after the date of death Note The due date for filing the T1 return of a surviving spouse or common law partner who was living with the deceased is the same as the due date for the deceased's final return indicated in the chart above. However, any balance owing on the surviving spouse's or common law partner's return still has to be paid on or before April 30 of the next year to avoid interest charges. If the deceased or the deceased's spouse or common-law partner was carrying on a business in 2012 (unless the expenditures made in the course of carrying on the business were mainly the cost or capital cost of tax shelter investments), the following due dates apply: Period when death occurred Due date for the final return if a business is being carried on January 1 to December 15 June 15 of the following year December 16 to December 31 Six months after the date of death	Corporate tax return due for filing 6 months after the fiscal year end each fiscal period. When the corporation's tax year ends on the last day of a month, file the return by the last day of the sixth month after the end of the tax year. When the last day of the tax year is not the last day of a month, file the return by the same day of the sixth month after the end of the tax year. When the T2 filing deadline falls on a Saturday, Sunday, or statutory holiday, CRA will consider the return filed on time if it is sent on the first business day after the filing deadline. Note Corporations with no business activities, including newly incorporated companies which never operate, are required to file a corporate income tax return each year.
Income Tax Balance Due Date
Personal income tax balance due are due on the 30th of April each year. The due date for a balance owing on a final return depends on the date of death. Period when death occurred Due date for the amount owing January 1 to October 31 April 30 of the following year November 1 to December 31 Six months after the date of death In some cases, the legal representative of the deceased taxpayer may make an election to delay paying part of the amount due. For instance, paying part of the amount owing from rights or things and the deemed disposition of capital property may be delayed.	Generally, all corporation taxes (with the exception of Part III and Part XII.6) are due two months after the end of the tax year. However, the tax is due three months after the end of the tax year if the following conditions apply: the corporation is a CCPC throughout the tax year; the corporation is claiming the small business deduction for the tax year, or was allowed the small business deduction in the previous tax year; and either the corporation's taxable income For determining balance due dates, the taxable income for the previous year of corporations and associated, subsidiary, and predecessor corporations means taxable income before applying loss carrybacks. Special rules apply to determine the balance due date of a new corporation formed after an amalgamation or of a parent corporation after it receives the assets of a subsidiary corporation that is winding-up. For more information, go to Payments or see Guide T7B-Corp, Corporation Instalment Guide. for the previous tax year does not exceed its business limit for that tax year (if the corporation is not associated with any other corporation during the tax year); or the total of the taxable incomes of all the associated corporations for their last tax year ending in the previous calendar year does not exceed the total of their business limits The business limits are provided at Line 410 - Business limit. For more information about allocating the business limit among associated corporations, see Schedule 23. for those tax years (if the corporation is associated with any other corporation during the tax year). References Sections 125 and 157 of the Income Tax Act

Taxpayers, corporate and individual alike, are not required to pay instalment tax on the following taxes if their tax payable is below the following thresholds:

• Corporate Income Tax (Parts I, VI, VI.1, and XIII.1 tax): net tax owed $3,000 or less

  Corporations with tax payable exceeding this threshold must pay corporate income tax instalments according to the following:

  1. Quarterly instalment payments for eligible small Canadian-controlled private corporations (CCPC);
  2. Monthly instalment payments for corporations other than eligible small CCPC.

  using one of the options below:

  • Option 1 - One-quarter (or one-twelfth) of the estimated tax payable for the current tax year is due each quarter (month) of the tax year.
  • Option 2 - One-quarter (or one-twelfth) of the tax payable from the previous tax year is due each quarter (month) of the current tax year.
  • Option 3 - One-quarter (or one-twelfth) of the tax payable from the year before the previous tax year is due the first quarter (month) of the current tax year. One-third of the difference between the tax for the previous tax year and the first payment is due in each of the remaining three (eleven) quarters (months) of the current tax year.

  New Corporations

  Except for Part XII.I tax, you do not have to make instalment payments for a new corporation until you have started your second year of operation. However, for your first year of operation, you have to pay any tax you owe on or before your balance due date for that tax year.

• GST/HST return: net tax owed $3,000 or less (for annual filers)

  If your business is located in either Ontario or British Columbia and you have an annual reporting period that begins in 2010 with an HST payable exceeding the threshold, there are proposed changes for calculating the amount of your HST instalment payments for that reporting period. Your instalment payments that become payable after the first fiscal quarter beginning on or after July 1, 2010, will be equal to the lesser of ?of the amount of net tax for the current year and ?of 240% of the amount of the net tax for the previous year.

  Quarterly HST/GST installment payments are due one month after the end of each of your fiscal quarters and are usually equal to a quarter (? of your net tax from the previous year. You may also choose to base your quarterly installment payments on an estimate of your net tax for the current year if you expect that it will be less than it was for the previous year.

  If your GST/HST payment is $50,000 or more, you must pay it electronically or at your financial institution, not by mail or in person to CRA, on or before the due date.

Automobile Allowance Rates and Passenger Vehicle Tax Related Limits

Yukon, Northwest Territories & Nunavut have a slightly higher automobile allowance rates than those for the rest of Canada. Please contact Taxwiz Accounting if you need these rates.

In addition to the operating cost portion calculated on a per kilometer basis, the taxable automobile benefits also include a standby charge. Automobile benefits are not insurable (hence no EI premium is required) but subject to CPP and income tax withheld.

Exchange Rates

For tax purposes, CRA accepts the average exchange rates published by the Bank of Canada in converting foreign currencies to Canadian dollar. The following table contains some major exchange rates (rounded to the 4th decimal) extracted from data published by the Bank of Canada since 1999.

CRA uses prescribed interest rates to compute interest charged on amounts owed and interest paid to taxpayers on amounts the CRA owes to individuals and corporations. These rates are revised every quarter and are linked herein.