CPP, EI and Tax Rates for 2012

It is a new year and the new tax rates are in.  There were not a lot of changes from last year.  Most money ranges and limits moved with the government's inflation index.

Federal Income Tax Rates	2012	2011
Basic Personal Exemption	$          10,822	$          10,527
15% on the first:	$          42,707	$          41,544
22% on the next up to:	$          85,414	$          83,088
26% on the next up to:	$        132,406	$        128,800
29% on the income over:	$        132,406	$        128,800
Alberta Income Tax Rates	2012	2011
Basic Personal Exemption	$          17,282	$          16,977
Tax rate	10%	10%
CPP	2012	2011
Maximum Pensionable Earnings	$          50,100	$          48,300
Basic Exemption	$            3,500	$            3,500
Rate	4.95%	4.95%
Employee & Employer Max.	$            2,307	$            2,218
Self Employed Max.	$            4,613	$            4,435
EI	2012	2011
Maximum Insurable Earnings	$          45,900	$          44,200
Employee Rate	1.83%	1.78%
Employee Max.	$               840	$               787
Employer Rate	2.56%	2.49%
Employer Max.	$            1,176	$            1,101

2011 RRSP contribution deadline is February 29, 2012. 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).  The limit for 2012 is $22,970.

2012 TFSA contribution room is $5,000. If you haven't contributed in past years you can contribution up to $20,000.