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Resource Centre
Tool Kit
- Income Tax/CCRA
- Canada Pension Plan
- Employment Insurance
- RRSP
- Permitted CCRA Withdrawals from an RRSP
- TFSA (Tax-Free Savings Account)
- RESP (Registered Education Savings Plan)
Income Tax/CCRA
2010/2011 tax brackets, combined British Columbia and Federal rates:
| 2011 Taxable Income | Tax Rate | 2010 Taxable Income | Tax Rate |
| first $36,145 | 20.06% | first $35,859 | 20.06% |
| over $36,146 up to $41,544 | 22.70% | over $35,859 up to $40,970 | 22.70% |
| over $41,544 up to $72,293 | 29.70% | over $40,970 up to $71,719 | 29.70% |
| over $72,293 up to $83,001 | 32.50% | over $71,719 up to $81,941 | 32.50% |
| over $83,001 up to $83,088 | 34.29% | over $81,941 up to $82,342 | 36.50% |
| over $83,088 up to $100,787 | 38.29% | over $82,342 up to $99,987 | 38.29% |
| over $100,787 up to $128,800 | 40.70% | over $99,987 up to $127,021 | 40.70% |
| over $128,800 | 43.70% | over $127,021 | 43.70% |
| BC Basic Personal Amount | Tax Rate | BC Basic Personal Amount | Tax Rate |
| $11,088 | 5.06% | $11,000 | 5.06% |
| Federal Basic Personal Amount | Tax Rate | Federal Basic Personal Amount | Tax Rate |
| $10,527 | 15.00% | $10,382 | 15.00% |
2011 tax rates and personal amount pending revision to changes in the Federal or Provincial Budget.
Canada Pension Plan
The maximum pensionable CPP earning level for the year 2011 is $48,300 a $1,100 increase over 2010. Contributors who earn more than the $48,300 ceiling on pensionable earnings in the year 2011 are not required or allowed to contribute more to the CPP.
Employee contribution rates for the year 2011 remain at 4.95% and the basic exemption remains at $3,500. The maximum employee contribution to the plan in 2011 is $2,217.60.
Self employed maximum contributions increase to $4,435.20.
Employment Insurance
The maximum EI earnings for 2011 have increased to $44,200. Contributors who earn more than the $44,200 ceiling on insurable earnings in the year 2011 are not required to contribute more to EI.
Employee contribution rates for the year 2011 increase to 1.78% from 1.73% in 2010. The maximum employee contribution to the plan in 2011 is $786.86, up from $747.36 in 2010.
RRSP
How much can you contribute?
The historical limits and increases for registered retirement savings plans (RRSPs) and Defined Contribution (also known as Money Purchase) Registered Pension Plans (RPPs) are as follows:
| Year | RRSP | Defined Contribution RPP |
| 2006 | $18,000 | $19,000 |
| 2007 | $19,000 | $20,000 |
| 2008 | $20,000 | $21,000 |
| 2009 | $21,000 | $22,000 |
| 2010 | $22,000 | $22,450 |
| 2011 | $22,450 | Indexed |
Note: The RPP limits are based on current-year earnings; RRSP limits are based on prior-year earnings. RRSP contribution amounts are 18% of earned income to the maximum limits above.
Permitted CCRA Withdrawals from an RRSP
- Home Buyers' Plan (HBP)
- Limits: $25,000 per participant
- Eligibility: 'First time home owners'
- Repayment: Within a period of no more than 15 years following the withdrawal
- Lifelong Learning Plan (LLP)
- Limits: $10,000 per year to a maximum of $20,000 over four years
- Eligibility: either you or your partner must be enrolled in a qualifying educational program, minimum of three months duration
- Repayment: Within a period of no more than 10 years following the withdrawal
TFSA (Tax-Free Savings Account)
- Limits: Up to $5,000 per year, indexed to inflation. (should increase to $5,500 in 2012)
- Any unused contribution room can be carried forward. There is no lifetime limit on total contributions.
- TFSA contribution room is tracked by CRA and reported on your Notice of Assessment. An income tax return MUST be filed each year to qualify for your annual amount. Even in years without report income a tax return should be filed to qualify for your annual TFSA contribution entitlement.
- Contributions can be made by made by Canadian residents aged 18 and over.
- Contributions can also be made by a spouse or common-law partner, with no applicable attribution rules to either spouse.
RESP (Registered Educational Savings Plan)
- Limits: No annual limits; Lifetime contribution limit of $50,000
- CESG (Canadian Education Savings Grant) will contribute 20% on the first $2,000 of annual RESP contributions per beneficiary; lifetime maximum of $7,200
- An RESP terminates after year 25 of inception, but $50,000 can be transferred to an RRSP under an Accumulated Income Payment (AIP)
- Effective January 1st, 2004 you are no longer able to add a beneficiary or set up a new RESP plan without a valid Social Insurance Number
