2011 Personal Tax Levels

As we have recently started 2011, it is always good to plan how to protect your money from taxes.  The following is some tax information that you may want to review for tax planning purposes throughout the year.

The Federal Income Tax rates for 2011 are as follows:
•15% on the first $41,544 of taxable income
•22% on taxable income between $41,544 and $83,088
•26% on taxable income between $83,088 and $128,800
•29% of taxable income over $128,800
The Federal Basic Personal Amount in 2011 is $10,527

The Alberta Income Tax rate is 10% of taxable income.  The Alberta Basic Personal Amount is $16,977.

CPP Info
Maximum Pensionable Earnings:            $48,300
Basic Exemption                                     $3,500
Rate                                                             4.95%
Employee & Employer Maximum            $2,217.60
Self Employed Maximum                       $4,435.20

EI Info
Maximum Insurable Earnings               $44,200
Employee Rate                                            1.78%
Employee Maximum                               $786.76
Employer Rate                                            2.492%
Employee Maximum                            $1,101.46

2011 RRSP contribution deadline is March 1, 2010.  The contribution limit is $22,450, although if you have not contributed to the maximum in past years you have additional contribution room.  You can contribute to RRSPs until you turn 71 when RRSPs must be converted into something else like a RRIF (Registered Retirement Income Fund).

2011 TFSA contribution room is $5,000.  If you haven't contributed in past years you have additional contribution room.

For more information about how to save or defer your taxes with investments, please contact one of our Retirement Planning Specialists at Rocky Credit Union.