2014 TAX PLANNING
Quick Reference Guide
2014 Top Marginal Tax Rates (Federal and Provincial Rates Combined)*
Provincial/Territorial Income Tax Rates*
(current to Jan. 2014)
British Columbia
Alberta
Saskatchewan
Manitoba
Ontario
Quebec
New Brunswick
Nova Scotia
Prince Edward
Island
Newfoundland
& Labrador
Yukon
Northwest
Territories
Nunavut
First $37,606
$37,606 – $75,213
$75,213 – $86,354
$86,354 – $104,858
$104,858 – $150,000
$150,000 and over
10% of taxable income
First $43,292
$43,292 – 123,692
$123,692 and over
First $31,000
$31,000 – $67,000
$67,000 and over
First $40,120
$40,120 – $80,242
$80,242 – $514,090
$514,090 and over
First $41,495
$41,495 – $82,985
$82,985 – $100,970
$100,970 and over
First $39,305
$39,305 – $78,609
$78,609 – $127,802
$127,802 and over
First $29,590
$29,590 – $59,180
$59,180 – $93,000
$93,000 – $150,000
$150,000 and over
First $31,984
$31,984 – $63,969
$63,969 and over
First $34,254
$34,254 – $68,508
$68,508 and over
First $43,953
$43,953 – $87,907
$87,907 – $136,270
$136,270 and over
First $39,808
$39,808 – $79,618
$79,618 – $129,441
$129,441 and over
First $41,909
$41,909 – $83,818
$83,818 – $136,270
$136,270 and over
5.06%
7.70%
10.50%
12.29%
14.70%
16.80%
11.00%
13.00%
15.00%
10.80%
12.75%
17.40%
5.05%
9.15%
11.16%
13.16%
16.00%
20.00%
24.00%
25.75%
9.68%
14.82%
16.52%
17.84%
8.79%
14.95%
16.67%
17.50%
21.00%
9.80%
13.80%
16.70%
7.70%
12.50%
13.30%
7.04%
9.68%
11.44%
12.76%
5.90%
8.60%
12.20%
14.05%
4.00%
7.00%
9.00%
11.50%
*The table includes and assumes all proposed rates from
2013 provincial budgets, where applicable, have been passed.
Interest/Foreign Dividends
Capital Gains**
Eligible Dividends
Non-Eligible Dividends
45.80%
39.00%
44.00%
46.40%
49.53%
49.97%
46.84%
47.37%
50.00%
42.30%
42.40%
43.05%
40.50%
22.90%
19.50%
22.00%
23.20%
24.76%
24.99%
23.42%
23.68%
25.00%
21.15%
21.20%
21.52%
20.25%
28.67%
19.29%
24.81%
32.26%
33.82%
35.23%
27.35%
28.71%
36.06%
22.46%
15.93%
22.81%
27.56%
37.98%
29.36%
35.32%
40.77%
40.14%
39.79%
36.02%
38.74%
39.07%
31.01%
32.03%
30.72%
31.19%
British Columbia
Alberta
Saskatchewan
Manitoba
Ontario
Quebec
New Brunswick
PEI
Nova Scotia
Newfoundland/Labrador
Yukon
NWT
Nunavut
*Rates include federal and provincial combined marginal tax rates, including provincial surtaxes.
**The capital gains rate for qualifying securities donated to registered charities in-kind is 0%.
RRSP/TFSA Contribution Limits
18% of previous year’s earned
income to a maximum of:
2014 – $24,270
2015 – $24,930
TFSA Contribution Limit
2014 – $5,500
Withholding Tax Rates for
RRSP/RRIF Withdrawals
Quebec
All Other Provinces
21%
26%
31%
10%
20%
30%
Up to $5,000
$5,001 – $15,000
Over $15,000
2014 Federal Income Tax Rates
First $43,953
15.00%
$43,953 – $87,907
22.00%
$87,907 – $136,270
26.00%
$136,270 and over
29.00%
Basic personal exemption
$11,138
Attribution Rules
Recipient
Gift
Spouse or Partner
Income
Attributed to “giftor”
Capital Gains
Attributed to “giftor”
2nd Generation Income No attribution
Child under 18
Income
Attributed to “giftor”
Capital Gains
No attribution
2nd Generation Income No attribution
Child over 18
Income
No attribution
Capital Gains
No attribution
Corporation (excluding small business corporation)
Attribution may result if
reason for transfer is to confer
a benefit on a family member
and reduce family tax payable
No or low
interest loan
Loan at prescribed
or commercial rate
Attributed to lender
Attributed to lender
No attribution
No attribution
No attribution
No attribution
Attributed to lender
No attribution
No attribution
No attribution
No attribution
No attribution
No attribution*
No attribution
No attribution
No attribution
Attribution may result if
reason for transfer is to confer
a benefit on a family member
and reduce family tax payable
No attribution
*Normally, loan must be for education, investment in a house, or to earn business income to avoid attribution.
Note: Attribution generally ceases on death or in cases of non-residency.
2014 TAX PLANNING
2014 Employment Insurance (EI) Premiums
All provinces/territories except Quebec
Quebec
Maximum Yearly Insurable Earnings
$48,600
$48,600
Employee’s Premium Rate
1.88%
1.53%
Employer’s Premium Rate
2.63%
2.14%
Maximum Yearly Employee Premium
$913.68
$743.58
Maximum Yearly Employer Premium
$1,279.15
$1,041.01
2014 Canada Pension Plan Premiums
All provinces/territories except Quebec
Quebec*
Maximum Pensionable Earnings
$52,500
$52,500
Basic Exemption
$3,500
$3,500
Maximum Contributory Earnings
$49,000
$49,000
Employee and Employer Rate
4.95%
5.175%
Maximum Employee/Employer contribution
$2,425.50
$2,535.75
Maximum Self-employed contribution
$4,851.00
$5,071.50
RRIF Minimum Withdrawals
Age
Withdrawal
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
3.33%
3.45%
3.57%
3.70%
3.85%
4.00%
4.17%
4.35%
4.55%
4.76%
5.00%
7.38%
7.48%
7.59%
7.71%
7.85%
7.99%
8.15%
8.33%
Age
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94+
Withdrawal
8.53%
8.75%
8.99%
9.27%
9.58%
9.93%
10.33%
10.79%
11.33%
11.96%
12.71%
13.62%
14.73%
16.12%
17.92%
20.00%
*In Quebec contributions are made to the Quebec Pension Plan.
2014 CPP and QPP Retirement Benefit
Maximum monthly benefit (assuming payments begin at age 65): $1,038.33
2014 Old Age Security (OAS) Payment Rates (current to Jan. 2014)
Maximum Monthly Benefit
$551.54
Maximum Annual Income
Pensioners with a net income of $71,592 or more are subject
to OAS clawback. Clawback rate is 15% for each dollar beyond
$71,592. OAS is fully eliminated once net income reaches $115,716.
P105
Students and Income Tax
P113
Gifts and Income Tax
P151
Canadian Residents Going
Down South
RC4092Registered Education Savings
Plans (RESPs)
RC4110 Employee or Self-employed?
RC4112 Lifelong Learning Plan (LLP)
RC4135 Home Buyers Plan (HBP)
RC4142 Tax Advantages of Donating
to Charity
RC4169Tax Treatment of Mutual Funds
for Individuals
RC4466
Tax Free Savings Account Guide
for Individuals
Effective Tax Rate: Actual rate of tax
paid by taxpayer. Considers deductions,
credits and graduated tax brackets.
Mackenzie Tax Brochures
RC4177 Death of an RRSP Annuitant
RC4178 Death of a RRIF Annuitant
RC4188 What You Should Know About Audits
T4002 Business and Professional Income
T4011
Preparing Returns for Deceased Persons
T4036 Rental Income
T4037
Capital Gains
T4040RRSPs and Other Registered
Plans for Retirement
T4055 Newcomers to Canada
T4056 Emigrants and Income Tax
T4058 Non-Residents and Income Tax
For more information, please visit mackenzieinvestments.com/taxestate
Telephone: 416-967-2000 or 1-888-653-7070 Fax: 416-922-5660 or 1-866-766-6623
180 Queen Street West, Toronto, ON M5V 3K1
13310
Marginal Tax Rate: Tax rate applicable
to last dollar of income earned. Does
not consider deductions and credits
available to taxpayer.
mackenzieinvestments.com/taxestate
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TE1005 1/14
Commonly Used CRA Guides
Marginal versus Effective Tax
Rates – What’s the Difference?