CPP, EI, Provincial and Federal Tax Rates

The government requires all employees to deduct CPP (Canada Pension Plan), EI (Employment Insurance) and Income Tax. The current rates for each of these deductions are listed below.

 

CPP Rates 2020 (Source)

 Contribution rate:

 5.25%

 Maximum Pensionable Earnings: 

 $58,700.00 

 Annual Basic Exemption:

 $3,500.00

 Annual Maximum Contribution:

 $2,898.00

 

Employment Insurance (EI) Rates 2020 (Source)

 Premium Rate:

 1.58%

 Maximum Insurable Earnings: 

 $54,200.00 

 Annual Maximum Premium:

 $856.36

 

Ontario Income Tax Rates 2020 (Source)

  • 5.05% on the first $44,740 of taxable income, plus
  • 9.15% on the next $44,742, plus
  • 11.16% on the next $60,518, plus
  • 12.16% on the next $70,000, plus
  • 13.16 % on the amount over $220,000

 

Federal Tax Rates 2020 (Source)

  • 15% on the first $48,535 of taxable income, plus
  • 20.5% on the next $48,534 of taxable income (on the portion of taxable income over 48,535 up to $97,069), plus
  • 26% on the next $53,404 of taxable income (on the portion of taxable income over $97,069 up to $150,473), plus
  • 29% on the next $63,895 of taxable income (on the portion of taxable income over 150,473 up to $214,368), plus
  • 33% of taxable income over $214,368

 

Visit www.ccra-adrc.gc.ca for more information.