Financial Planning Facts - 2023

RRSP contribution limit

18% of earned income to a maximum of $30,780

TFSA contribution limit

$6,500

TFSA cumulative limit

$88,000 for resident taxpayers age 18 and older in 2009

Maximum RESP contribution

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

Annual RESP contribution for maximum

20% of first $2,500 per beneficiary = CESG up to $500.

Canada Education Savings Grant (CESG)

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

Basic personal amount where net income does not exceed $165,430

$15,000 then gradually reduced for net income in excess of $165,430

Basic personal amount where net income exceeds of $235,675

$13,521

Federal tax brackets and rates based

on taxable income

Taxable Income

Federal Rate

$0 to $53,359

15%

$53,359 to $106,717

20.5%

$106,717 to $165,430

26%

$165,430 to $235,675

29%

Over $235,675

33%

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)

$971,190

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

$28,810

Maximum CPP/QPP benefit at age 65

$1,306.57 per month

Maximum CPP/QPP* benefit at age 60

$836.20 ($1,306.57 x 64%)

Maximum CPP/QPP* benefit at age 70

$1,855.33 ($1,306.57 x 142%)

Maximum Monthly OAS benefit at age 65

$687.56 - January 2023 to March 2023 adjusted quarterly

Maximum Monthly OAS benefit at age 70

$935.08 ($687.56 x 136%) - January 2023 to March 2023 adj. quarterly

OAS clawback rate

$0.15 for every $1 of net income above $86,912 ($81,761 for 2022) and eliminated when net income exceeds $141,917 (Age 65 to 74) and $147,418 (Age 75+)

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

$8,396 - reduced by 15% for net income over $42,335, credit fully eliminated at net income of $98,309

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 $106,717 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 $106,717:

·         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 $53,359)

Lifetime CDSB limit

$20,000

Disability amount credit

$9,428

CPP/QPP employer & employee contribution rate

5.95% (6.40% in Quebec) over the $3,500 basic exemption

CPP/QPP maximum contribution

$3,754.45 ($4,038.40 in Quebec)

CPP/QPP maximum contribution for self-employed

$7,508.90 ($8,076.80 in Quebec)

CPP/QPP maximum pensionable earnings

$66,600

EI employee premium rate

1.63% (1.27% in Quebec)

EI employer premium rate

2.28% (1.78% in Quebec)

EI employee maximum premium

$1,002.45 ($781.05 in Quebec)

EI employer maximum premium

$1,403.43 ($1,093.47 in Quebec)

EI employee maximum insurable earnings

$61,500

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

$449.54

QPIP employer maximum premium

$629.72

QPIP self-employed maximum premium

$798.98

Maximum QPIP insurable earnings

$91,000