Revision History
Original: Dec. 11, 2019
Revised: Dec. 17, 2019 - Provincial Bracket for ON SURTAX. Amount Over 6182.00 changed the Tax % from 36 to 56
Revised: June 8, 2020 - What's new for July 1, 2020: Yukon Territory TD1 and Provincial Bracket for BC. Amount over 220,000.00
refer to link https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/t4127-payroll-deductions-formulas/t4127-jul.html
2020 Payroll Tax Update Canada
The following information has been summarized based on the Canada Revenue Agency publication t4127-20e.pdf and the Revenue Quebec publication tp-1015.f-v(2020-01).pdf
This information can be obtained, in detail, at the following links:
- https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/t4127-payroll-deductions-formulas/t4127-jan.html
- https://www.canada.ca/en/services/taxes.html
- https://www.revenuquebec.ca/en/onlin...ails/tp-1015.g
- https://www.revenuquebec.ca/en/online-services/forms-and-publications/current-details/tp-1015.f-v/
Disclaimer
This guide reflects some income tax changes recently announced which, if enacted as proposed, would be effective January 1, 2020. At the time of publishing, these proposed changes were not law. We recommend that you use the Payroll Deductions Online Calculator (PDOC), the publication T4032 Payroll Deductions Tables, or the publication T4008 Payroll Deductions Supplementary Tables, and the formulas in this guide for withholding, starting with your first payroll in 2020.
Federal Brackets
Please see here for information to update brackets for the new tax year.
Please note that that there is no change for Quebec, Nova Scotia or Outside Canada.
| Bracket | Type | Description | 2019 Values | |||
|
CPP LIMITS |
Withholding |
Exemption, rate and maximum deduction |
Amount Over |
Tax % |
Limit |
|
|
3,500.00 |
5.25 |
2,898.00 |
||||
|
CPP W/H
|
Withholding |
Exemption, rate and maximum deduction |
Amount Over |
Tax % |
Limit |
|
|
3,500.00 |
5.25 |
2,898.00 |
||||
|
CPP W/H BONUS
|
Withholding |
Exemption, rate and maximum deduction |
Amount Over |
Tax % |
Limit |
|
|
0.00 |
5.25 |
2,898.00 |
||||
|
CPP/QPP MAX |
Limit + Tax% |
Pensionable earnings maximum |
|
Tax % |
Limit |
|
|
|
0.00 |
58,700.00 |
||||
|
EI LIMITS |
Withholding |
Rate and maximum deduction |
|
Tax % |
Limit |
|
|
|
1.58 |
856.36 |
||||
|
EI MAX |
Limit + Tax% |
Insurable earnings maximum |
|
Tax % |
Limit |
|
|
|
0.00 |
54,200.00 |
||||
|
EI MAX Q |
Limit + Tax% |
Insurable earnings maximum |
|
Tax % |
Limit |
|
|
|
0.00 |
54,200.00 |
||||
|
EI W/H |
Withholding |
Rate and maximum deduction |
|
Tax % |
Limit
|
|
|
|
1.58 |
856.36 |
||||
|
EI W/H Q |
Withholding |
Rate and maximum deduction |
|
Tax % |
Limit |
|
|
|
1.20 |
650.40 |
||||
|
FED TAX |
Withholding |
Withholding brackets and rates |
Amount Over |
Tax % |
Tax Amount |
|
|
0.00 |
15 |
0.00 |
||||
|
48,535.00 |
20.5 |
7,280.68 |
||||
|
97,069.00 |
26 |
17,229.94 |
||||
|
150,473.00 |
29 |
31,115.17 |
||||
|
214,368.00 |
33 |
49,644.44
|
||||
|
MAX EMPLOYMENT CRED |
Limit + Tax |
Credit limit |
|
Tax % |
Limit |
|
|
|
0.00 |
1,245.00 |
||||
Provincial Brackets
Please see here for information on how to update brackets for the new tax year.
| Bracket | Type | Description | 2019 Values | |||
| AB TAX | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 10 | 0.00 | ||||
| 131,220.00 | 12 | 13,122.40 | ||||
| 157,464.00 | 13 | 16,271.32 | ||||
| 209,952.00 | 14 | 23,094.28 | ||||
| 314,928.00 | 15 | 37,791.20 | ||||
| BC TAX Revised July 1,2020 |
Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 5.06 | 0.00 | ||||
| 41,725.00 | 7.7 | 2,110.83 | ||||
| 83,451.00 | 10.5 | 5,324.36 | ||||
| 95,812.00 | 12.29 | 6,622.29 | ||||
| 116,344.00 | 14.7 | 9,145.57 | ||||
| 157,748.00 | 16.8 | 15,231.66 | ||||
| 220,000.00 | 24.2 | 25,690.00 | ||||
| BC TAX RED | W/H Deduction | Reduction brackets, rates and limit | Amount Over | Tax % | Tax Amount | Limit |
| 0.00 | 0 | 0.00 | 476.00 | |||
| 21,185.00 | 3.56 | 0.00 | 476.00 | |||
| 34,556.00 | 0 | 476.00 | 476.00 | |||
| MB TAX W/H | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 10.8 | 0.00 | ||||
| 33,389.00 | 12.75 | 3,606.10 | ||||
| 72,164.00 | 17.40 | 8,549.54 | ||||
| NB TAX W/H | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 9.68 | 0.00 | ||||
| 43,401.00 | 14.82 | 4,201.03 | ||||
| 86,803.00 | 16.52 | 10,633.86 | ||||
| 141,122.00 | 17.84 | 19,607.17 | ||||
| 160,776.00 | 20.30 | 23,113.53 | ||||
| NL TAX W/H | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 8.7 | 0.00 | ||||
| 37,929.00 | 14.5 | 3,299.71 | ||||
| 75,858.00 | 15.8 | 8,799.56 | ||||
| 135,432.00 | 17.3 | 18,211.74 | ||||
| 189,604.00 | 18.3 | 27,583.53 | ||||
| NS TAX W/H | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 8.79 | 0.00 | ||||
| 29,590.00 | 14.95 | 2,600.71 | ||||
| 59,180.00 | 16.67 | 7,024.31 | ||||
| 93,000.00 | 17.5 | 12,662.00 | ||||
| 150,000.00 | 21 | 22,637.00 | ||||
| NT TAX W/H | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 5.9 | 0.00 | ||||
| 43,957.00 | 8.6 | 2,593.30 | ||||
| 87,916.00 | 12.2 | 6,373.75 | ||||
| 142,932.00 | 14.05 | 13,085.95 | ||||
| NT PTAX | Limit + Tax% | NT - Payroll Tax | Tax % | Limit | ||
| 2 | ||||||
| NU TAX W/H | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 4 | 0.00 | ||||
| 46,277.00 | 7 | 1,851.39 | ||||
| 92,555.00 | 9 | 5,090.95 | ||||
| 150,473.00 | 11.5 | 10,303.40 | ||||
| ON BASIC RED | Tax Credit | Reduction Amounts | Amount | Per Allowance | ||
| 249.00 | Blank | |||||
| 460.00 | Selected | |||||
| ON SURTAX | W/H Deduction | Surtax Rates | Amount Over | Tax % | Tax Amount | |
| 4,830.00 | 20 | 0.00 | ||||
| 6,182.00 | 56 | 270.40 | ||||
| ON TAX W/H | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 5.05 | 0.00 | ||||
| 44,740.00 | 9.15 | 2,259.71 | ||||
| 89,482.00 | 11.16 | 6,353.19 | ||||
| 150,000.00 | 12.16 | 13,107.00 | ||||
| 220,000.00 | 13.16 | 21,619.00 | ||||
| PEI TAX W/H | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 9.8 | 0.00 | ||||
| 31,984.00 | 13.8 | 3,134.79 | ||||
| 63,969.00 | 16.7 | 7,548.82 | ||||
| QC CNT ER CONT | Limit + Tax% | Rate and maximum earnings | Tax % | Limit | ||
| 0.0692 | 78,500.000 | |||||
| QC LOW RATE | Tax Credit | Total Credits Claimed x Bracket % | Tax % | Per Allowance | ||
| 15 | Blank | |||||
| QC RED | Deduction | Maximum income reduction | % | Max. Amount | ||
| 6 | 1,190.00 | |||||
| QC TAX W/H | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 15 | 0.00 | ||||
| 44,545.00 | 20 | 6,682.00 | ||||
| 89,080.00 | 24 | 15,589.20 | ||||
| 108,390.00 | 25.75 | 20,223.43 | ||||
| QPIP EE | Withholding | Rate and limit | Tax % | Limit | ||
| 0.494 | 387.79 | |||||
| QPIP ER | Withholding | Rate and limit | Tax % | Limit | ||
| 0.692 | 543.22 | |||||
| QPIP MAX | Limit + Tax % | Maximum earnings | Tax % | Limit | ||
| 0 | 78,500.00 | |||||
| QPP W/H | Withholding | Exemption, rate and maximum deduction | Amount Over | Tax % | Limit | |
| 3,500.00 | 5.70 | 3,146.40 | ||||
| QPP W/H BONUS | Withholding | Exemption, rate and maximum deduction | Amount Over | Tax % | Limit | |
| 0.00 | 5.70 | 3,146.40 | ||||
| SK LOW RATE | Tax Credit | Total Credits Claimed x Bracket % | Tax % | Per Allowance | ||
| 10.5 | Blank | |||||
| SK TAX W/H | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 10.5 | 0.00 | ||||
| 45,225.00 | 12.5 | 4,748.13 | ||||
| 129,214.00 | 14.5 | 15,247.03 | ||||
| YT TAX W/H | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 6.4 | 0.00 | ||||
| 48,535.00 | 9 | 3,106.15 | ||||
| 97,069.00 | 10.9 | 7,474.52 | ||||
| 150,473.00 | 12.8 | 13,295.54 | ||||
| 500,000.00 | 15 | 58,035.00 | ||||
| YT LOW RATE | Tax Credit | Reduction amounts | Tax % | Per Allowance | ||
| 6.4 | blank | |||||
Base Amount Changes
None applicable to this tax year.
Tax Form Class Code Changes
None applicable to this tax year.
Changes to Payroll Objects
None applicable to this tax year.
Method Step Table Changes
None applicable to this tax year.
Calculation Method Changes Required
None applicable to this tax year.
TD1 Amounts
Please see here for information on how to update TD1 amounts for the new tax year.
Federal
Notice to the readerThe enhanced federal Basic Personal Amount, announced on December 9, 2019, is proposed to be in effect as of January 1, 2020. As administrative relief, for 2020, if you are not able to make the system and procedure changes necessary to implement the new federal Basic Personal Amount calculation, you can use a federal Basic Personal Amount of $13,229 for all employees.
Please note that if you are using a federal Basic Personal Amount of $13,229 for all employees, there may be a discrepancy with calculated pay when using the Payroll Deductions Online Calculator. This discrepancy will be reconciled when employees file their 2020 tax return.
| Type | Amount |
| Basic personal amount | Formula |
| Child amount | Please refer to Federal TD1 form |
| Age amount | Please refer to Federal TD1 form |
| Disability amount | Please refer to Federal TD1 form |
| Spouse or common-law partner amount | Please refer to Federal TD1 form |
| Amount for an eligible dependent | Please refer to Federal TD1 form |
| Amount for an infirm dependent age 18 or older | Please refer to Federal TD1 form |
Provinces and Territories:
Alberta
| Type | Amount |
| Basic personal amount | 19,369.00 |
| Spouse or common-law partner amount | Up to 19,369.00 |
British Columbia
| Type | Amount |
| Basic personal amount | 10,949.00 |
| Spouse or common-law partner amount | Up to 10,949.00 |
Manitoba
| Type | Amount |
| Basic personal amount | 9,838.00 |
| Spouse or common-law partner amount | Up to 9,838.00 |
New Brunswick
| Type | Amount |
| Basic personal amount | 10,459.00 |
| Spouse or common-law partner amount | Up to 10,459.00 |
Newfoundland and Labrador
| Type | Amount |
| Basic personal amount | 9,498.00 |
| Spouse or common-law partner amount | Up to 9,498.00 |
Northwest Territories
| Type | Amount |
| Basic personal amount | 15,093.00 |
| Spouse or common-law partner amount | Up to 15,093.00 |
Nova Scotia
| Type | Amount |
| Basic personal amount | 8,481 (Plus see note below) |
| Spouse or common-law partner amount | Up to 8,481 (Plus see note below) |
Nunavut
| Type | Amount |
| Basic personal amount | 16,304.00 |
| Spouse or common-law partner amount | Up to 16,304.00 |
Ontario
| Type | Amount |
| Basic personal amount | 10,783.00 |
| Spouse or common-law partner amount | Up to 10,783.00 |
Prince Edward Island
| Type | Amount |
| Basic personal amount | 10,000.00 |
| Spouse or common-law partner amount | (Information not yet available) |
Quebec
| Type | Amount |
| Basic personal amount | 15,532.00 |
| Spouse or common-law partner amount | Up to 15,532.00 |
| Amount for other dependents who are 18 or older | 4,348.00 |
| Amount for a child under 18 enrolled in post-secondary studies | 2,983.00 |
| Additional amount for person living alone (single-parent family) | 2,197.00 |
| Amount for a severe and prolonged impairment in mental or physical functions | 3,449.00 |
| Amount for a person living alone | 1,780.00 |
| Age amount | 3,267.00 |
| Amount for retirement income | 2,902.00 |
Saskatchewan
| Type | Amount |
| Basic personal amount | 16,065.00 |
| Spouse or common-law partner amount | (Information not yet available) |
Yukon (Revised July 1,2020)
The Yukon Basic Personal Amount (BPAYT) has been changed to mirror the Federal Basic Personal Amount (BPAF).Yukon Effective July 1, 2020 the calculation is; BPAYT = Where NI* ≤ $150,473, BPAYT = $14,160 Where $150,473 < NI* < $214,368, BPAYT**= $14,160 - (NI* - $150,473) x ($1,862 / $63,895)*** Where NI* ≥ $214,368, BPAYT = $12,298
* Variable NI represents Net Income = A + HD
** If the BPAYT has three or more digits after the decimal point, increase the second digit after the decimal point by one if the third digit is five or more, and drop the third digit. If the third digit after the decimal point is less than five, drop the third digit.
*** Note that there is no rounding on this division. Given the current situation with COVID-19 pandemic we understand that employers are facing unique challenges. For the remainder of 2020 the CRA will expect this change to be implemented on a best efforts basis.
| Type | Amount |
| Basic personal amount | Formula |
| Spouse or common-law partner amount | Please refer to TD1 form for YT |
Other Configurations
Please see here for information on other configuration to be updated in preparation for the new tax year.
Return to Payroll Tax Update in the Configuring Workforce section