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Last updated: November 19 2008
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 | |
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.
