Essential Tax Numbers for 2019, 2020 and 2021

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With a new year comes new tax numbers!   Below is a quick reference of important tax numbers for three years, including 2021, for year end planning purposes with your accountant and financial planner.  CRA has utilized a 1% indexing (inflation) for those numbers, subject to that condition.

What You Need to Know

Taxable income brackets:

  • RRSP Contribution Limit:
    • 2019: $26,500
    • 2020: $27,230
    • 2021: $27,830
  • TFSA Annual Contribution Limit
    • 2019: $6,000
    • 2020: $6,000
    • 2021: $6,000
  • Maximum Pensionable Earnings
    • 2019: $57,400
    • 2020: $58,700
    • 2021: $61,600
  • OAS Income Recovery Threshold (claw-back begins)
    • 2019: $77,580
    • 2020: $79,054
    • 2021: $79,845
  • OAS Maximum Recovery Threshold (claw-back recovers all OAS payments)
    • 2019: $126,058
    • 2020: $128,149
    • 2021: TBD
  • Lifetime Capital Gains Exemption
    • 2019: $866,912
    • 2020: $883,384
    • 2021: $892,218
  • Maximum EI Insurable Earnings
    • 2019: $53,100
    • 2020: $54,200
    • 2021: $56,300
  • Medical Expense Threshold
    • 2019: 3% of net income or $2,352, whichever is less
    • 2020: 3% of net income or $2,397, whichever is less
    • 2021: 3% of net income or $2,421, whichever is less
  • Basic Personal Amount for individuals whose net income is less than the beginning of the 29% tax bracket
    • 2019: N/A
    • 2020: $13,229
    • 2021: $13,808
  • Age Amount and Net income threshold amount
    • 2019: $7,494    $37,790
    • 2020: $7,637    $38,508
    • 2021: $7,713    $38,893
  • Canada Caregiver amount for children under age 18
    • 2019: $2,230
    • 2020: $2,273
    • 2021: $2,295
  • Child Disability Benefit and Family Net income phase out
    • 2019: $2,832    $67,426
    • 2020: $2,886    $68,798
    • 2021: $2,915    $69,395
  • Canada Child Benefit
    • 2019: $6,639 per child under six, $5,602 per child age 6-17
    • 2020: $6,765 per child under six, $5,708 per child age 6-17
    • 2021: $6,833 per child under six, $5,765 per child age 6-17

The Bottom Line

These are the current numbers released as of November 2020, but could change without notice, and be superseded by other stimulus measures.
Source: https://www.canada.ca/en/revenue-agency/services/tax/individuals/frequently-asked-questions-individuals/adjustment-personal-income-tax-benefit-amounts.html

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Disclaimer

This information is designed to educate and inform you of financial strategies and products currently available. As each individual’s circumstances differ, it is important to review the suitability of these concepts for your particular needs with a Qualified Financial Advisor.