1. The Canada workers benefit
Rates and income thresholds have changed for 2021. A new “secondary earner exemption” $14,000 has been introduced.
Maximin income for Single taxpayer without children is at $32,244
Maximin income for Single-earner families is at $42,197
Maximin income for double-earner families is at $56,197
2. Home office expenses
Temporary flat rate method is increased to $500 (250 working days) in 2021 and in 2022.
3. Educator
Eligible educators, regardless of their income level, who buy teaching supplies may qualify for a refundable tax credit of up to $250 each year.
4. Marginal tax rates 2021
The marginal tax rate is the amount of additional tax paid for every additional dollar earned
| TAXABLE | Salary & | Capital | Dividends | |
| INCOME $ | Interest | gain | Eligible | Non-eligible |
| First 42,184 | 20.06% | 10.03% | -9.60% | 10.43% |
| 42,185 – 49,020 | 22.70% | 11.35% | -5.96% | 13.47% |
| 49,021 – 84,369 | 28.20% | 14.10% | 1.63% | 19.80% |
| 84,370 – 96,866 | 31.00% | 15.50% | 5.49% | 23.02% |
| 96,867 – 98,040 | 32.79% | 16.40% | 7.96% | 25.07% |
| 98,041 – 117,623 | 38.29% | 19.15% | 15.55% | 31.40% |
| 117,624 – 151,978 | 40.70% | 20.35% | 18.88% | 34.17% |
| 151,979 – 159,483 | 43.92% | 21.96% | 23.32% | 37.87% |
| 159,484 – 216,511 | 46.02% | 23.01% | 26.22% | 40.29% |
| 216,512 – 222,420 | 49.80% | 24.90% | 31.44% | 44.64% |
| 222,421 and up | 53.50% | 26.75% | 36.54% | 48.89% |
(Disclaimer: this is for information only.)
