2009 Tax Brackets, Rates and Amounts
Last week the CRA issued the draft version of T4217 - Payroll Deductions Formulas for Computer Programs - 88th Edition - Effective January 1, 2009. This obscure document provides the details of the tax brackets and rates applicable to 2009. The indexation factor that applies to federal amounts is 2.5% for 2008. For the various provinces, the indexation factor varies from 0% for provinces who do not apply indexing to their rates and amounts to a maximum of 3.8% in Alberta.
Federal Tax Brackets for 2008 and 2009
|
2008 Taxable Income Range |
|
Tax Rate |
|
2009 Taxable Income Range |
|
Up to $37,885 |
|
15% |
|
Up to $38,832 |
|
$37,886 to $75,769 |
|
22% |
|
$38,833 to $77,664 |
|
$75,770 to $123,184 |
|
26% |
|
$77,665 to $126,264 |
|
Over $123,184 |
|
29% |
|
Over $126,264 |
Tax rates remain at the same levels, but the brackets have been indexed by 2.5%
Federal Personal Amounts for 2008 and 2009
| Personal Amounts |
2008 |
2009 |
| Basic Personal |
Maximum Claim |
$9,600 |
$10,100 |
| Age |
Maximum Claim |
$5,276 |
$5,408 |
| Base Amount |
$31,524 |
$32,312 |
| Spouse or Common-Law Partner |
Maximum Claim |
$9,600 |
$10,100 |
| Reduced by net income over |
$0 |
$0 |
| Eligible Dependants |
Maximum Claim |
$9,600 |
$10,100 |
| Reduced by net income over |
$0 |
$0 |
| Children under 18 |
Maximum Claim (per child) |
$2,038 |
$2,089 |
| Infirm Dependants |
Maximum Claim |
$4,095 |
$4,198 |
| Reduced by net income over |
$5,811 |
$5,956 |
| Canada Employment |
Maximum |
$1,019 |
$1,044 |
| Public Transit Passes |
Maximum |
None |
None |
| Children's Fitness |
Maximum |
$500 |
$500 |
| Adoption Expenses |
Maximum Claim |
$10,643 |
$10,909 |
| Pension Income |
Maximum Claim |
$2,000 |
$2,000 |
| Caregiver |
Maximum Claim |
$4,095 |
#4,198 |
| Reduced by net income over |
$13,986 |
$14,336 |
| Disability |
Basic Amount |
$7,021 |
$7,196 |
| Supplementary Amount |
$4,095 |
$4,198 |
| Base Child Care Amount |
$2,399 |
$2,459 |
|
Tuition, Education, and Textbook |
Minimum Tuition |
$100 |
$100 |
|
Full-time Education Amount
+ Textbook Amount (per month) |
$400
+$65 |
$400
+$65 |
|
Part-time Education Amount
+ Textbook amount (per month) |
$120
+$20 |
$120
+$20 |
| Medical Expenses |
3% limitation |
$1,962 |
$2,011 |
| Refundable Medical Expense Supplement |
Maximum |
$1,041 |
$1,067 |
| Base Family Income |
$23,057 |
$23,633 |
Canada Pension Plan Contributions for 2008 and 2009
The maximum pensionable earnings under the CPP (Canada Pension Plan) for 2009 will increase from $44,900 to $46,300. This translates to a maximum employer and employee contribution in 2009 of $2,118.60, increased from a maximum of $2,049.30 in 2008.
The basic exemption of $3,500 will remain the same in 2009 as will the contribution rate of 4.95%. The self-employed rate of 9.9% will also remain unchanged for the year.
Employment Insurance Premiums for 2008 and 2009
The maximum insurable earnings for Employment Insurance purposes increase to $42,300 but the premium rate remains at 1.73% for a maximum annual premium of $731.79 for all provinces (up from $711.03) except Quebec where it is reduced to 1.38% for a maximum premium of $583.74. For 2009, the maximum earnings for the Quebec Parental Insurance Plan (QPIP) are $62,000 with a rate of 0.484% for a maximum annual premium of $300.08.
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