Tax Calculator Canada 2019

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Comprehensive Guide to Canada’s 2019 Tax System

The 2019 tax year in Canada brought several important changes to the tax landscape that affected individuals and families across the country. Understanding these changes is crucial for accurate tax planning and compliance. This comprehensive guide will walk you through the key aspects of the 2019 Canadian tax system, including tax brackets, credits, deductions, and provincial variations.

Key Changes in 2019 Canadian Tax Law

Several significant changes took effect for the 2019 tax year:

• Canada Pension Plan (CPP) enhancements: The first phase of CPP enhancement began in 2019, with contribution rates increasing from 4.95% to 5.1% for employees (and employers). The maximum pensionable earnings increased to $57,400.
• Canada Workers Benefit (CWB): Formerly known as the Working Income Tax Benefit, the CWB was enhanced to provide more support to low-income workers.
• Home Buyers’ Plan (HBP) limit: The withdrawal limit for the HBP increased from $25,000 to $35,000 for homes purchased after March 19, 2019.
• Accelerated Capital Cost Allowance: Businesses could write off the full cost of certain capital assets in the year of purchase.
• Carbon tax implementation: The federal carbon pricing system came into effect in provinces that didn’t have their own system (Ontario, New Brunswick, Manitoba, and Saskatchewan).

2019 Federal Tax Brackets and Rates

The federal tax rates for 2019 were as follows:

Tax Bracket (CAD)	Tax Rate	Tax on Bracket
Up to $47,630	15%	$7,144.50
$47,631 to $95,259	20.5%	$9,800.35
$95,260 to $147,667	26%	$13,220.12
$147,668 to $210,371	29%	$18,677.53
Over $210,371	33%	N/A

These brackets were indexed to inflation, representing a 1.9% increase from the 2018 tax year. The basic personal amount (the income level at which no federal tax is payable) was $12,069 for 2019.

Provincial and Territorial Tax Rates (2019)

In addition to federal taxes, Canadians pay provincial or territorial taxes. The rates vary significantly across the country. Here’s a comparison of the top marginal tax rates for 2019:

Province/Territory	Top Marginal Rate	Income Threshold (CAD)	Combined Federal + Provincial Rate
Alberta	15%	Over $314,928	48%
British Columbia	16.8%	Over $153,900	49.8%
Manitoba	17.4%	Over $70,000	50.4%
New Brunswick	20.3%	Over $160,776	53.3%
Newfoundland and Labrador	18.3%	Over $187,400	51.3%
Northwest Territories	14%	Over $147,667	47%
Nova Scotia	21%	Over $150,000	54%
Nunavut	11.5%	Over $147,667	44.5%
Ontario	13.16%	Over $220,000	53.53%
Prince Edward Island	16.8%	Over $125,000	49.8%
Quebec	25.75%	Over $106,970	53.31%
Saskatchewan	15%	Over $129,214	48%
Yukon	15%	Over $500,000	48%

Note that Quebec has a separate tax collection system and different tax brackets than the rest of Canada. The rates shown for Quebec are the provincial rates only, which are combined with federal abatement calculations.

Important Tax Credits and Deductions for 2019

Several tax credits and deductions were available to Canadians in 2019 to help reduce their tax burden:

• Basic Personal Amount: $12,069 (federal) – This is the amount of income you can earn without paying federal tax.
• Canada Employment Amount: Up to $1,222 – For work-related expenses like home office costs or employment supplies.
• Public Transit Amount: This credit was eliminated for 2018 and subsequent years, including 2019.
• Children’s Fitness and Arts Amounts: These credits were eliminated for 2017 and subsequent years.
• Home Accessibility Tax Credit: Up to $10,000 in expenses for renovations to improve accessibility, providing a 15% credit (maximum $1,500).
• Medical Expense Tax Credit: For eligible medical expenses exceeding 3% of net income or $2,352 (whichever is less).
• Donations and Gifts: Charitable donations provide a 15% credit for the first $200 and 29% for amounts over $200.
• Tuition, Education, and Textbook Amounts: These were eliminated in 2017 but unused amounts from previous years could still be claimed in 2019.
• Canada Caregiver Credit: For those caring for dependent relatives with physical or mental impairments.
• Disability Tax Credit: Up to $8,416 for individuals with severe and prolonged impairments.

RRSP and TFSA Contribution Limits for 2019

Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs) are important tax-planning tools for Canadians:

• RRSP Contribution Limit: The limit for 2019 was 18% of your 2018 earned income, up to a maximum of $26,500. Unused contribution room from previous years could be carried forward.
• TFSA Contribution Limit: The annual limit for 2019 was $6,000. The cumulative contribution room since 2009 was $63,500 for someone who had never contributed before and was at least 18 years old in 2009.

Tax Filing Deadlines and Important Dates for 2019

For the 2019 tax year (filed in 2020), the key dates were:

• RRSP Contribution Deadline: March 2, 2020 (for contributions to count toward the 2019 tax year)
• Personal Income Tax Filing Deadline: April 30, 2020 (June 15, 2020 for self-employed individuals and their spouses)
• Tax Payment Deadline: April 30, 2020 (for any taxes owed)
• First Quarterly Instalment Deadline (for those required to pay by instalments): March 16, 2020

It’s important to note that even if you don’t owe taxes, filing by the deadline is crucial to avoid late-filing penalties and to ensure you receive any benefits or refunds you’re entitled to.

Common Tax Mistakes to Avoid for 2019

When filing your 2019 taxes, be aware of these common pitfalls:

1. Missing the filing deadline: Even if you can’t pay your taxes owed, file your return on time to avoid late-filing penalties (5% of the balance owing plus 1% per month up to 12 months).
2. Not reporting all income: The CRA receives copies of your T-slips, so failing to report income will likely trigger an audit or reassessment.
3. Claiming ineligible expenses: Be sure you understand what expenses are actually deductible for your situation.
4. Math errors: Simple calculation mistakes can delay your refund or trigger a review. Double-check your numbers or use tax software.
5. Ignoring provincial credits: Many provinces offer additional credits beyond the federal ones. Make sure you’re claiming all credits you’re eligible for.
6. Not keeping receipts: If you’re claiming deductions or credits, keep your receipts for at least six years in case of an audit.
7. Forgetting to file for benefits: Even if you have no income, filing a return is necessary to receive benefits like the GST/HST credit or Canada Child Benefit.
8. Not optimizing RRSP contributions: Contributing to your RRSP can reduce your taxable income. Consider the timing of your contributions to maximize your tax savings.

Tax Planning Strategies for 2019

Several strategies could help minimize your 2019 tax burden:

• Income Splitting: For families, consider strategies to split income among family members in lower tax brackets, such as through spousal RRSPs or prescribing dividends.
• Tax-Loss Selling: If you have investments outside registered accounts, consider selling losing positions to offset capital gains.
• Deferring Income: If possible, defer receiving income until 2020 if you expect to be in a lower tax bracket next year.
• Accelerating Deductions: Pay deductible expenses before year-end to claim them on your 2019 return.
• Maximizing RRSP Contributions: Contribute as much as possible to your RRSP before the March 2020 deadline to reduce your 2019 taxable income.
• Using the Home Office Deduction: If you’re self-employed or work from home, claim eligible home office expenses.
• Donating to Charity: Make charitable donations before year-end to claim the donation tax credit.
• Reviewing Your Portfolio: Ensure your investment portfolio is tax-efficient, with dividend-paying stocks in taxable accounts and interest-bearing investments in registered accounts.

How the Canada Revenue Agency (CRA) Processes Your Return

Once you file your 2019 tax return, here’s what happens:

1. Reception and Initial Processing: The CRA receives your return (electronically or by mail) and performs initial checks for completeness.
2. Assessment: Your return is assessed, which typically takes about 2 weeks for electronic returns and 8 weeks for paper returns. The CRA checks for mathematical accuracy and may compare your return to information they have from other sources (like T-slips).
3. Refund or Balance Due: If you’re owed a refund, it will typically be issued within 8 business days for electronic returns (longer for paper returns). If you owe money, you’ll receive a notice of assessment with payment instructions.
4. Review or Audit: Some returns are selected for review or audit. This could be random or triggered by something unusual in your return. If selected, you’ll receive a letter from the CRA requesting additional information or documentation.
5. Benefits and Credits: After your return is assessed, the CRA will calculate any benefits or credits you’re eligible for, such as the GST/HST credit or Canada Child Benefit.

If you disagree with your assessment, you have the right to object. The deadline for filing an objection is typically 90 days from the date on your notice of assessment.

Resources for 2019 Tax Filing

For official information and assistance with your 2019 taxes, consult these authoritative resources:

• Canada Revenue Agency (CRA) website – The official source for all tax information, forms, and services
• CRA Income Tax Information – Detailed information about income tax for individuals
• Financial Consumer Agency of Canada – Taxes – Consumer-focused tax information
• TaxTips.ca – Independent Canadian tax information (note: not a government site but widely respected)

For complex tax situations, consider consulting a professional accountant or tax specialist who can provide personalized advice based on your specific circumstances.

Looking Ahead: How 2019 Taxes Affect Future Years

Your 2019 tax return has implications beyond just that year:

• RRSP Contribution Room: Your 2019 earned income affects your RRSP contribution limit for 2020.
• TFSA Contribution Room: Any withdrawals from your TFSA in 2019 are added back to your contribution room at the beginning of 2020.
• Capital Losses: Any capital losses from 2019 can be carried back to offset gains from previous years or carried forward indefinitely.
• Benefits and Credits: Many government benefits are income-tested based on your previous year’s return, so your 2019 income affects benefits you receive in 2020-2021.
• Installment Payments: If you owe significant taxes for 2019, you may be required to make quarterly installment payments for 2020.

Understanding these carry-forward provisions can help with multi-year tax planning strategies.

Frequently Asked Questions About 2019 Canadian Taxes

What was the federal tax rate for the highest income earners in 2019?

The top federal tax rate in 2019 was 33% on income over $210,371. When combined with provincial taxes, the top marginal rate ranged from 44.5% in Nunavut to 54% in Nova Scotia.

Could I still claim the children’s fitness tax credit in 2019?

No, the children’s fitness tax credit was eliminated for the 2017 tax year and subsequent years, including 2019. However, you could still claim any unused amounts from previous years.

What was the maximum RRSP contribution limit for 2019?

The RRSP contribution limit for 2019 was $26,500 or 18% of your 2018 earned income, whichever was less. Any unused contribution room from previous years could be carried forward.

How did the carbon tax affect my 2019 taxes?

The federal carbon tax came into effect in 2019 for provinces without their own carbon pricing system (Ontario, New Brunswick, Manitoba, and Saskatchewan). The tax added costs to fossil fuels, but residents in these provinces received Climate Action Incentive payments to offset the costs. These payments were claimed on the 2019 tax return.

What was the deadline for contributing to my RRSP for the 2019 tax year?

The deadline for RRSP contributions to count toward your 2019 taxes was March 2, 2020 (60 days after the end of the calendar year).

Could I still claim the public transit tax credit in 2019?

No, the public transit tax credit was eliminated for the 2018 tax year and subsequent years, including 2019.

What was the basic personal amount for 2019?

The federal basic personal amount for 2019 was $12,069. This is the amount of income you could earn without paying federal tax.

How did the Canada Workers Benefit change in 2019?

The Canada Workers Benefit (formerly the Working Income Tax Benefit) was enhanced in 2019 to provide more support to low-income workers. The maximum basic amount increased to $1,355 for single individuals and $2,335 for families.

Conclusion: Making the Most of Your 2019 Tax Return

Understanding the intricacies of the 2019 Canadian tax system can help you maximize your refund, minimize your tax liability, and plan effectively for future years. Remember that tax planning is a year-round activity, not just something to think about at filing time.

Key takeaways for your 2019 taxes:

• Be aware of the federal and provincial tax brackets that apply to your income level
• Take advantage of all credits and deductions you’re eligible for
• Consider the timing of income and deductions to optimize your tax situation
• Maximize your RRSP and TFSA contributions where possible
• Keep thorough records to support your claims
• File on time to avoid penalties, even if you can’t pay your full balance
• Consider professional advice for complex tax situations

While the 2019 tax year is now in the past, the lessons learned can help with your current and future tax planning. The Canadian tax system is complex and constantly evolving, so staying informed about changes is crucial for effective financial management.

For the most accurate and up-to-date information, always refer to the official CRA website or consult with a qualified tax professional.