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Tax Rates |
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| Tax Rates |
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2008 Personal Income Tax Rates |
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Rate |
Income Bracket |
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Federal |
15% |
$0 |
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22% |
$37,885 |
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26% |
$75,769 |
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29% |
$123,184 |
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| Ontario |
6.05% |
$0 |
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9.15% |
$36,021 |
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11.16% |
$72,041 |
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Ontario Surtax |
20% of tax above $4,162 + 36% of
tax above $5,249 |
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2008 Top Marginal Personal Income Tax Rates
(Federal & Ontario combined) |
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Employment and
other income |
46.41% |
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Canadian Dividends
(non-eligible) |
31.34% |
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Canadian Dividends
(eligible) |
23.96% |
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Capital Gains |
23.20% |
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RRSP Contribution Limits |
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The RRSP contribution limit is 18% of earned income from
the prior year to a maximum of:
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2008 |
$20,000 |
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2009 |
$21,000 |
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2010 |
$22,000 |
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2011 |
indexed |
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CPP
Contributions |
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The Canada Pension Plan contribution rate for 2008 is 4.95%
of pensionable earnings for the year. The maximum pensionable earnings
for the year will be $44,900 and the basic exemption is unchanged at
$3,500. The maximum employer and employee contribution for 2008 is
$2,049.30 and the maximum self-employed contribution is $4,098.60.
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EI
Premium Rates |
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The employment insurance premium rate
is $1.73 per $100 of
insurable earnings for employees. The rate paid by employers is set at
$2.42 per $100 of insurable earnings. The maximum insurable earnings for
the year are $41,100 and the maximum premium payable by employees is
$711. The maximum employer contribution is 1.4 times the maximum
employee contribution or $995. |
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Automobile Limits |
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There is no change to the limits for capital cost of passenger vehicles
($30,000 + GST and PST),
the limit on deductible monthly leasing costs ($800 + GST and PST, and the maximum allowable
interest deduction ($300 per month). The general prescribed rate used to determine
employee taxable benefits is increased to $0.22 per kilometre. A full
listing of automobile deduction limits and rates is available at
http://www.fin.gc.ca/news07/07-111e.html. |
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This information presented is only of a
general nature, may omit many details and special rules, is current only as
of the published date, and accordingly cannot be regarded as legal or tax
advice. Please consult our office for more information on this subject and
how it pertains to your specific tax or financial situation. |
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If you'd like to discuss
your Personal & Corporate tax needs give us a call - (416) 803-5638.
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