|
|
 MAJOR
CHANGES IN 2004 |
| The taxable income thresholds were indexed
by 3.3% (federal) and 2.6% (BC) in 2004, this was to reflect the
changes to Canada’s Consumer Price Index (CPI).
|
|
Individual Marginal Rates - 2004 |
| TAXABLE INCOME |
INCOME |
CAPITAL GAIN |
DIVIDENDS |
| $ 8,013 - $8,523 |
16.00% |
8.00% |
3.33% |
| $ 8,524 - $32,476 |
22.05% |
11.03% |
4.52% |
| $ 32,477 - $35,000 |
25.15% |
12.58% |
8.40% |
| $ 35,001 - $64,954 |
31.15% |
15.58% |
15.90% |
| $ 64,955 - $70,000 |
33.70% |
16.85% |
19.08% |
| $ 70,001 - $74,575 |
37.70% |
18.85% |
24.08% |
| $ 74,576 - $90,555 |
39.70% |
19.85% |
26.58% |
| $ 90,556 - $113,804 |
40.70% |
20.35% |
27.83% |
| $ 113,805 AND OVER |
43.70% |
21.85% |
31.58% |
|
2004 Federal / British Columbia Income Tax |
TAXABLE
INCOME |
TOTAL
TAX |
TAXABLE
INCOME |
TAXABLE
INCOME |
TAXABLE
INCOME |
TOTAL
TAX |
|
|
| 8,000 |
- |
47,000 |
9,162 |
86,000 |
22,716 |
|
|
| 9,000 |
88 |
48,000 |
9,474 |
88,000 |
23,510 |
|
|
| 10,000 |
293 |
49,000 |
9,785 |
90,000 |
24,304 |
|
|
| 11,000 |
498 |
50,000 |
10,097 |
92,000 |
25,112 |
|
|
| 12,000 |
703 |
51,000 |
10,408 |
94,000 |
25,926 |
|
|
| 13,000 |
909 |
52,000 |
10,720 |
96,000 |
26,740 |
|
|
| 14,000 |
1,114 |
53,000 |
11,031 |
98,000 |
27,554 |
|
|
| 15,000 |
1,319 |
54,000 |
11,343 |
100,000 |
28,368 |
|
|
| 16,000 |
1,524 |
55,000 |
11,654 |
110,000 |
32,438 |
|
|
| 17,000 |
1,729 |
56,000 |
11,966 |
120,000 |
36,494 |
|
|
| 18,000 |
1,935 |
57,000 |
12,277 |
130,000 |
41,064 |
|
|
| 19,000 |
2,140 |
58,000 |
12,589 |
140,000 |
45,434 |
|
|
| 20,000 |
2,345 |
59,000 |
12,900 |
150,000 |
49,804 |
|
|
| 21,000 |
2,550 |
60,000 |
13,212 |
160,000 |
54,174 |
|
|
| 22,000 |
2,755 |
61,000 |
13,523 |
170,000 |
58,544 |
|
|
| 23,000 |
2,961 |
62,000 |
13,835 |
180,000 |
62,914 |
|
|
| 24,000 |
3,166 |
63,000 |
14,146 |
190,000 |
67,284 |
|
|
| 25,000 |
3,371 |
64,000 |
14,458 |
200,000 |
71,654 |
|
|
| 26,000 |
3,576 |
65,000 |
14,770 |
210,000 |
76,024 |
|
|
| 27,000 |
3,782 |
66,000 |
15,107 |
220,000 |
80,394 |
|
|
| 28,000 |
3,987 |
67,000 |
15,444 |
230,000 |
84,764 |
|
|
| 29,000 |
4,192 |
68,000 |
15,781 |
240,000 |
89,134 |
|
|
| 30,000 |
4,397 |
69,000 |
16,118 |
250,000 |
93,504 |
|
|
| 31,000 |
4,602 |
70,000 |
16,455 |
260,000 |
97,874 |
|
|
| 32,000 |
4,808 |
71,000 |
16,832 |
300,000 |
115,354 |
|
|
| 33,000 |
5,029 |
72,000 |
17,209 |
350,000 |
137,204 |
|
|
| 34,000 |
5,265 |
73,000 |
17,586 |
400,000 |
159,054 |
|
|
| 35,000 |
5,502 |
74,000 |
17,963 |
450,000 |
180,904 |
|
|
| 36,000 |
5,798 |
75,000 |
18,349 |
500,000 |
202,754 |
|
|
| 37,000 |
6,094 |
76,000 |
18,746 |
550,000 |
224,604 |
|
|
| 38,000 |
6,390 |
77,000 |
19,143 |
600,000 |
246,454 |
|
|
| 39,000 |
6,686 |
78,000 |
19,540 |
650,000 |
268,304 |
|
|
| 40,000 |
6,987 |
79,000 |
19,937 |
700,000 |
290,154 |
|
|
| 41,000 |
7,293 |
80,000 |
20,334 |
750,000 |
312,004 |
|
|
| 42,000 |
7,605 |
81,000 |
20,731 |
800,000 |
333,854 |
|
|
| 43,000 |
7,916 |
82,000 |
21,128 |
850,000 |
355,704 |
|
|
| 44,000 |
8,228 |
83,000 |
21,525 |
900,000 |
377,554 |
|
|
| 45,000 |
8,539 |
84,000 |
21,922 |
950,000 |
399,404 |
|
|
| 46,000 |
8,851 |
85,000 |
22,319 |
1,000,000 |
421,254 |
|
|
** Tax computations above reflect a claim for only the basic
personal amount of $8,012 / $8,523 and the applicable CPP & EI credits.
Other deductions and credits will reduce income taxes at the appropriate
rates.
|
Personal Tax Credit 2004 |
| |
FEDERAL |
BC |
| Amount of credits: |
CREDIT |
CREDIT |
 |
| Basic personal credit |
$1,282 |
$516 |
| Spousal credit (reduced when
spouse's income over $681 (Fed) and $730 (BC)) |
1,088 |
442 |
Equivalent-to-spouse credit (reduced
when dependant's income over $681 (Fed) and $730 (BC))
|
1,088 |
442 |
| Infirm dependant aged 18 or over
(reduced when dependant’s income over $5,368 (Fed) and $5,940
(BC)) |
605 |
226 |
| Caregiver credit (reduced by
the particular person’s income over $12,921 (Fed) and $12,621
(BC)) |
1 |
605 |
226 |
| Age credit (65 and over) |
2 |
626 |
231 |
| Disability credit |
1,038 |
387 |
| Pension income (maximum) |
3 |
160 |
61 |
| Education – per month |
4 |
64 |
12 |
| Credits as a percentage of: |
|
|
| |
Tuition fees |
5 |
16.00% |
6.05% |
| |
Medical expenses |
6 |
16.00% |
6.05% |
| |
Charitable donations |
7 |
|
|
| |
–first $200 |
|
16.00% |
6.05% |
| |
–remainder |
|
29.00% |
14.70% |
| |
CPP contributions3 |
8 |
16.00% |
6.05% |
| |
EI premiums |
9 |
16.00% |
6.05% |
|
Notes |
| 1 |
The caregiver tax credit is
available to providers of in-home care for elderly or infirm
relatives.
|
| 2 |
Federal age credit max with income
up to $29,124 declines to nil at income of $55,204. BC credit
max with income up to $28,450, declines to nil at income of
$53,930. |
| 3 |
Pension amount is lesser of qualifying
pension income and $1,000 |
| 4 |
A student may claim an amount equal
to $400 / $200 per number of months enrolled as a full-time student
or $120 / $60 per number of months enrolled as a part-time student
enrolled at qualifying educational institution or program. |
| 5 |
Tuition fees and educational
credit are both transferable to a spouse, parent or grandparent.
The maximum amount transferable is $ 5,000 less the students
net income over $8,012 / $8,513. Unused amounts are available
for carryforward by the student. |
| 6 |
Medical Expense Amount is equal
to qualifying medical expenses in excess of 3% of net income
or $1,813 Fed, $1,772 BC, whichever is greater. |
| 7 |
Charitable Donations may not exceed
75% of net income. Excess amounts may be carried forward. The limit
is 100% in the year of death or the immediate preceding year. |
| 8 |
Canada Pension Plan contribution
is 4.95% of pensionable earnings. Basic CPP exemption is $3,500.
Maximum CPP pensionable earnings are $41,100. Self-employed
individuals contribution rate is 9.4%, 50% deductable in calculating
taxable income. |
| 9 |
E.I. contribution rate is 1.95%.
Maximum insurable earnings are $39,000 |
| 10 |
The following amounts may be transferred
from a spouse, to the extent that they are not needed to reduce his
or her federal income tax to zero: age amount, pension amount, disability
amount, tuition fees and education amount. |
|
|
2004 Automobile Deduction Limits |
 |
Effective January 1, 2004, the following limits apply: |
 |
Ceiling on capital cost of passenger vehicles remains at $30,000, plus applicable taxes. |
|
Ceiling on deductible leasing costs will remain at $800, plus applicable taxes. |
|
The limit on tax-exempt kilometre allowances is $0.42 for the first 5,000 kilometres driven and $0.36 for each additional kilometre. |
|
The limit on allowable interest deduction for amounts borrowed to purchase an automobile will remain at $300. |
|
2004 Average Exchange Rates |
| Country |
Currency |
2004 Rates |
2003 Rates |
| European Union |
Euro |
1.61690 |
1.58260 |
| Japan |
Yen |
0.01204 |
0.01209 |
| Mexico |
Peso |
0.1154 |
0.1301 |
| Switzerland |
Franc |
1.0473 |
1.0418 |
| United Kingdom |
Pound Sterling |
2.3842 |
2.2883 |
| United States |
Dollar |
1.3015 |
1.4015 |
|
2005 Payroll Deductions |
| CPP |
Maximum Pensionable Earnings |
$41,100.00 |
|
Basic Annual Exemption |
$3,500.00 |
|
Contribution Rate |
4.95% |
|
Maximum Employee Contribution |
$1,861.20 |
| EI |
Maximum Annual Insurance Earnings |
$39,000.00 |
|
Premium Rate |
1.95% |
|
Annual Premium |
$760.50 |
|
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