Tax Rates

Corporate Taxes

Corporate Tax Rates For Canadian Controlled Private Corporations

Year Small Business Rate Active Income Rate Investment**
2012 Up to $500,000 13.50% Over $500,000 25.00% 44.67%
2013 Up to $500,000 13.50% Over $500,000 25.00% 44.67%
2014 Up to $500,000 13.50% Over $500,000 26.00% 45.67%
2015 Up to $500,000 13.50% Over $500,000 26.00% 45.67%
2016 Up to $500,000 13.00% Over $500,000 26.00% 49.67%

2017

Up to $500,000

13% to 12.50%***

Over $500,000

26.00%***

49.67%
2018 Up to $500,000 12% Over $500,000 27.00% 50.67%
2019 Up to $500,000 11% Over $500,000 27.00% 50.67%

** Investment tax rate includes refundable taxes of 30.67% which are refundable at 38 1/3% of taxable dividends paid for dividends received after December 31, 2015.
*** The provincial rate for small business income was reduced from 2.5% to 2% effective April 1, 2017.

The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.

Personal Tax Rates

Combined Federal and Personal Tax Rates for 2019 (British Columbia)

Income Salary/Interest Capital Gains Eligible Dividends Regular Dividends
Up to $10,682 0.00% 0.00% 0.00% 0.00%
$10,682 – $12,069 5.06% 2.53% 0.00% 0.00%
$12,069 – $40,707 20.06% 10.03% -9.60% 10.43%
$40,707 – $47,630 22.70% 11.35% -5.96% 13.47%
$47,630 – $81,416 28.20% 14.10% 1.63% 19.80%
$81,416 – $93,476 31.00% 15.50% 5.49% 23.02%
$93,476 – $95,259 32.79% 16.40% 7.96% 25.07%
$95,259 – $113,506 38.29% 19.15% 15.55% 31.40%
$113,506 – $147,667 40.70% 20.35% 18.88% 34.17%
$147,667 – $153,900 43.70% 21.85% 23.02% 37.62%
$153,900 – $210,371 45.80% 22.90% 25.92% 40.04%
$210,371+ 49.80% 24.90% 31.44% 44.64%

The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.

Corporate and Personal Tax Analysis

Active Income*

Small Business Income <500k >500k Investment Income
Income in Corp 1,000.00 1,000.00 1,000.00
Corporate Tax (110.00) (270.00) (506.70)
Dividend Refund 306.70
Available for Dividend 890.00 730.00 800.00
Personal Taxes (397.30) (229.51) (498.00)
Net After-Tax Cash 492.70 500.49 442.88
Income Earned Directly 1,000.00 1,000.00 1,000.00
Personal Taxes (498.00) (498.00) (498.00)
Net After-Tax Cash 502.00 502.00 502.00
Deferral of Taxes 388.00 228.00 (8.70)
Deferral of Tax as % of Income 38.80% 22.80% -0.87%
Savings (Cost) (9.30) (1.51) (59.12)
Corporate Rates
Tax on Income <500k 11.0%
Tax on Income >500k 27.0%
Tax on Investment Income 50.67%
Income Earned Directly Taxed at the Top Marginal Tax Rates as Follows:
Eligible Dividends 31.44%
Ineligible Dividends 44.64%
Salaries/Interest 49.80%

* Assumes individual shareholder in top marginal tax bracket.

The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.

CPP & EI

EI Contribution Rates for 2019

Maximum annual insurable earnings Rate (%) Maximum annual employee premium Maximum annual employer premium
$53,100 1.62% $860.22 $1,204.31

CPP Contribution Rates for 2019

Maximum annual pensionable earnings Basic exemption amount Maximum contributory earnings Employee and employer contribution rate (%) Maximum annual employee and employer contribution
$57,400 $3,500 $53,900 5.10% $2,748.90

The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.

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