2022 Financial Planning Facts

Savings

RRSP contribution limit

18% of earned income to a maximum of $29,210

TFSA contribution limit

$6,000

TFSA cumulative limit

$81,500 for resident taxpayers age 18 and older in 2009

Education Savings

Maximum RESP contribution

Unlimited annual up to lifetime maximum of $50,000 per beneficiary

Annual RESP contribution for maximum Canada Education Savings Grant (CESG)

20% of first $2,500 per beneficiary = CESG up to $500. Plus 20% of next $2,500 per beneficiary if carryforward room is available = additional CESG up to $500. Maximum annual CESG = $1,000/year/ beneficiary. Maximum lifetime CESG limit is $7,200 per beneficiary.

BC Training and Education Savings Grant (BCTESG)

$1,200 one-time payment for child born in 2006 or later; no RESP contribution required to receive grant; apply on 6th birthday

Quebec Education Savings Incentive (QESI)

10% of first $2,500 = $250/year, plus carryforward allowed up to $250/year, lifetime maximum of $3,600

Personal Tax

Basic personal amount where net income does not exceed $151,978

$14,398 then gradually reduced for net income in excess of $155,625

Basic personal amount where net income exceeds of $216,511

$12,719

Federal tax brackets and rates based on taxable income

Canadian eligible dividends

Gross up is 38%; taxable is 138% of actual dividend

Federal tax credit is 20.73% of actual dividend amount

Other than eligible Canadian dividends

Gross up is 15%; taxable amount is 115% of actual dividend

Federal tax credit is 10.38% of actual dividend

Lifetime capital gains exemption for qualified small business shares and qualified farm or fishing property (gross gain)

$913,630

Additional lifetime capital gains exemption for qualified farm or fishing property (gross gain)

$86,370

Retirement

Maximum CPP/QPP benefit at age 65

$1,253.59 per month

Maximum CPP/QPP* benefit at age 60

$802.30 ($1,253.59 x 64%)

Maximum CPP/QPP* benefit at age 70

$1,780.10 ($1,253.59 x 142%)

Maximum Monthly OAS benefit at age 65

$642.25 - January 2022 to March 2022 adjusted quarterly

Maximum Monthly OAS benefit at age 70

$873.46 ($642.25 x 136%) - January 2022 to March 2022 adj. quarterly

OAS clawback rate

$0.15 for every $1 of net income above $81,761 ($79,845 for 2021) and eliminated when net income exceeds $133,141 ($129,757 for 2021) OAS is recovered July 2022 - June 2023 for the 2021 tax year

RRSP withholding tax / RRIF withholding for amounts in excess of minimums

10% (20% in Quebec) on amounts up to $5,000

20% (25% in Quebec) on amounts over $5,000 up to $15,000 30% (30% in Quebec) on amounts over $15,000

Age amount credit - individuals age 65 or older on December 31, 2022

$7,898 - reduced by 15% for net income over $39,826, credit fully eliminated at net income of $92,479

Disability Savings

Maximum RDSP contribution

Unlimited annual up to lifetime maximum of $200,000 per beneficiary

Annual RDSP Canada Disability Savings Grant (CDSG) matches

Amount of grant when family income is $100,392 or less:

- on the first $500 contribution - 300% match up to $1,500/year

- on the next $1,000 contribution - 200% match up to $2,000/year

Amount of grant when family income is more than $100,392:

- on the first $1,000 contribution - 100% match up to $1,000/year

Lifetime CDSG limit

$70,000

Annual RDSP Canada Disability Savings Bond (CDSB) maximum

$1,000 (no bond entitlement when income exceeds $50,197)

Lifetime CDSB limit

$20,000

Disability amount credit

$8,870

Payroll Deductions

CPP/QPP employer & employee contribution rate

5.70% (6.15% in Quebec) over the $3,500 basic exemption

CPP/QPP maximum contribution

$3,499.80 ($3,776.10 in Quebec)

CPP/QPP maximum contribution for self-employed

$6,999.60 ($7,552.20 in Quebec)

CPP/QPP maximum pensionable earnings

$64,900

EI employee premium rate

1.58% (1.20% in Quebec)

EI employer premium rate

2.21% (1.68% in Quebec)

EI employee maximum premium

$952.74 ($723.60 in Quebec)

EI employer maximum premium

$1,333.84 ($1,013.04 in Quebec)

EI employee maximum insurable earnings

$60,300

Quebec Parental Insurance Plan (QPIP) employee contribution rate

0.494%

Quebec Parental Insurance Plan (QPIP) employer contribution rate

0.692%

Quebec Parental Insurance Plan (QPIP) self- employed contribution rate

0.878%

QPIP employee maximum premium

$434.72

QPIP employer maximum premium

$608.96

QPIP self-employed maximum premium

$772.64

Maximum QPIP insurable earnings

$88,000

Government Links

Canada Revenue Agency website

https://www.canada.ca/en/services/taxes.html

Canada Revenue Agency general helpline

1-800-959-8281

Canada Public Pensions website

https://www.canada.ca/en/services/benefits/publicpensions.html

Phone number for CPP/OAS queries

1-800-277-9914

Phone number for QPP queries

1-800-463-5185

Retraite Québec website

www.retraitequebec.gouv.qc.ca