Your 2022 Tax Truth Sheet and Calendar


We’re in a brand new yr and with it comes some upward changes in tax bracket, credit score quantity and advantages. These inflation-based adjustments apply largely throughout the board. The Canada Income Company has listed these quantities at 2.4% for 2022, in comparison with final yr’s ranges. The speed is predicated on the typical shopper worth index for the 12 months ended September 30, 2021, as in comparison with the identical interval a yr in the past.

The yr may deliver some adjustments to tax guidelines, primarily based on final fall’s election guarantees and the federal government’s subsequent financial assertion. These and normal tax-planning ideas will probably be mentioned in a separate article within the coming weeks. Within the meantime, listed below are some new numbers and key dates to contemplate for 2022:

tax charges

federal

Whereas taxation charges are largely unchanged, the federal tax-bracket threshold for taxable earnings has been raised as follows:

  • 15% on beforehand $50,197 employment and “different earnings” (in comparison with $49,020 earlier in 2021)
  • 20.5% on $50,197 to $100,392 (versus $49,020 to $98,040)
  • 26% on $100,392 to $155,625 ($98,040-$151,978)
  • $29.38% at $155,625 to $221,708 (in comparison with 29.32% at $151,978-$216,511)
  • 33% on quantities over $221,708 (versus $216,511)

The minimal larger tax charge relevant to the fourth bracket additionally applies to charges for each capital beneficial properties and dividend earnings. Associated charges for capital beneficial properties (primarily based on half of the revenue being topic to tax), certified dividend earnings (often utilized to dividends from giant Canadian firms) and non-qualified dividends (paid by smaller Canadian firms). The brackets in every for are as follows:

capital acquire

Certified Dividend Earnings

non-qualified dividend

bracket 1

7.5%

-0.03%

6.87%

bracket 2

10.25%

7.56%

13.19%

bracket 3

13%

15.15%

19.52%

bracket 4

14.69% (up from 14.66%)

above 19.81% (19.73%)

23.41% (up from 23.34%)

bracket 5

16.5%

24.81%

27.57%

United Federal/Provincial

Particular person provinces have additionally adjusted their parentheses accordingly. Here is an summary of how this impacts the mixed federal/provincial tax charges within the 4 largest provinces:

  • Ontario’s lowest mixed federal/provincial bracket now applies to these with taxable earnings of $46,226 or much less, in comparison with $45,142 in 2021, and this tranche of earnings continues to be taxed at 20.05%. The highest bracket now applies to these whose taxable earnings exceeds $221,708, $220,000 within the earlier yr, and is taxed at 53.53%. Because of the change within the bracket threshold, an individual with a taxable earnings of $100,000 now pays tax not more than 37.91%, in comparison with 43.41% final yr.
  • In Quebec, the bottom mixed federal/provincial bracket is now capped at $45,105 versus $46,295 in 2021 and taxed at 27.53% (unchanged). The highest bracket applies to quantities above $221,708, a rise from $216,511 within the earlier yr, and taxed at 53.31% (no change). An individual with a taxable earnings of $100,000 now pays tax not more than 41.12%, in comparison with 45.71% within the earlier yr.
  • British Columbia’s lowest mixed federal/provincial bracket now reaches $43,070, up from final yr’s $42,184 and continues to be taxed at 20.06%. Its high bracket applies to taxable earnings above $227,091, versus 222 in 222,420. Somebody with $100,000 in earnings now pays a most tax of 32.79%, down from 38.29%.
  • Alberta now has a decrease mixed federal/provincial tax bracket ceiling of $50,197, up from final yr’s $49,020, and continues to be taxed at 25%. Its high bracket continues to be taxed at 48% and applies to earnings above 314,928, unchanged from 2022. The highest tax charge for a $100,000 particular person is now 30.5%, down from 36%.

tax credit

Here is a abstract of the adjustments to the key federal non-refundable tax credit for 2022:

  • Primary private quantity: $14,398 (up from $13,808). Be aware that this enhance is predicated on an “superior” components that’s designed to deliver this quantity to $15,000 in 2023. No tax is payable on taxable earnings as much as this stage. (Excessive-income people could not profit from the rise due to an advanced income-testing calculation.)
  • Age: $7,898 ($7,713). The credit score is out there to individuals 65 and older and is regularly “clouded again” for many who reported web earnings of about $39,000 to $90,000 in 2021, when the credit score expires. was.
  • Incapacity: $8,870 ($8,662)
  • Pension Earnings: $2,000 (unchanged)
  • Medical Bills: $2,495 ($2,421) and capped at 3% of web earnings

For provincial tax functions, these credit have been equally prolonged. For instance, in Ontario, the unique private quantity that applies to provincial tax is now $11,141, up from $10,880 in 2021. In Quebec, this quantity is now $16,143, in comparison with $15,728.

contribution restrict

  • RRSP greenback restrict: The 2022 restrict is $29,210, up from 2021’s $27,830. This annual restrict can not exceed 18% of your earned earnings for the earlier taxation yr. The precise most contribution in a given yr is set by your whole contribution room generated by unused contributions in years.
  • TFSA restrict: $6,000 (unchanged). For many who have by no means contributed to a TFSA, the cumulative restrict is now $81,500.
  • OAS clawback vary: Previous age safety earnings is taxed again for larger earnings earners. For 2022, the clawback begins if the taxable earnings is $81,761 and the OAS should be paid in full for these making $133,141 or extra. This compares with the clawback vary of $79,845 to $129,581 for 2021.
  • CPP Contribution: Premiums payable for Canada Pension Plan (and Quebec Pension Plan) elevated to five.7% or an worker’s earnings elevated from 5.45% in 2021. The utmost annual contribution for workers (and their employers) is now $3,499.80, in comparison with $3,166.45 in 2021. For self-employed people, the utmost is $6,999.60, which is larger than $6,332.90. The annual most pensionable earnings is now $64,900, up from final yr’s $61,600. That is a rise of about 5.4%, the largest YMPE enhance in 20 years, as a result of pandemic’s affect on the labor market. The expansion was initially pegged at 3.4% for 2022.
  • EI Contribution: The utmost employment insurance coverage contribution for a person has elevated to $952.74, from $889.54 in 2021. The utmost annual insurable earnings is now $60,300, up from $56,300 final yr.


Your 2022 Tax Calendar

private earnings tax
-2021 RRSP contribution deadline: March 1 (2022 RRSP contribution deadline is March 1, 2023)
-2022 Quarterly installment dates for Earnings Tax (if relevant, i.e. tax not deducted at supply): March 15, June 15, September 15, December 15
-Deadline for employers to ship T4 employment-income slip: finish of February
-T5s sending deadline: finish of February
-T3s sending deadline: finish of March
Deadline for submitting earnings tax returns for people: Could 2 (The conventional submitting deadline of April 30 falls on a Saturday this yr.)
Deadline for submitting earnings tax returns for self-employed people: June 15
– Deadline for cost of excellent taxes:

  • Particular person – Could 2
  • Self-Employed Particular person: Could 2

Time restrict for submitting return of deceased taxpayer in respect of yr of loss of life:

  • If the loss of life occurred between January and finish of October – Could 2 throughout 2021
  • If occurred throughout November or December 2021 – six months after the date of loss of life
  • Any excellent quantity of tax to the deceased is payable on the above return-filing dates.

-RRIF conversion deadline: December thirty first (however realistically talking it needs to be settled in December first)


gross sales tax

(The next is relevant to self-employed people who file H/G/QST returns yearly.)

-2022 Quarterly installment dates for H/G/QST remittance: One month after the tip of the interval
Final date for submitting H/G/QST return: fifteenth June
Deadline to pay any H/G/QST excellent in extra of the quantity paid by installment: Could 2



Supply hyperlink

Online Rich Tech

Online Rich Tech