Rates and Limits
As expected, several tax rates and limits are changing in 2020.
- Federal and provincial income tax brackets are increasing to keep up with inflation.
- Employment Insurance (EI) Premiums are decreasing from 1.62% in 2019 to 1.58% in 2020.
- Maximum pensionable earnings, the amount used by the government to calculate Canada’s Pension Plan contributions for the year, is increasing to $58,700 in 2020, up from $57,400 in 2019. Similarly, the employee and employer contribution rates for 2020 will be increasing by 5.25%, up from 5.1% in 2019.