A new year means new limits. Here’s a list of new financial planning data for 2021 (In case you want to compare this to past years, that data is included). Pensions, RRSP, TFSA, CPP, OSA, New Federal Tax Brackets.
Pension and RRSP contribution limits
- The new limit for RRSPs for 2021 is 18% of the previous year’s earned income or $27,830 whichever is lower less the Pension Adjustment (PA).
- The limit for Deferred Profit Sharing Plans is $14,605
- The limit for Defined Contribution Pensions is $29,210
Remember that contributions made in January and February of 2021 can be used as a tax deduction for the 2020 tax year.
| Tax Year | Income from | RRSP Maximum Limit |
|---|---|---|
| 2021 | 2020 | $27,830 |
| 2020 | 2019 | $27,230 |
| 2019 | 2018 | $26,500 |
| 2018 | 2017 | $26,230 |
| 2017 | 2016 | $26,010 |
| 2016 | 2015 | $25,370 |
| 2015 | 2014 | $24,930 |
| 2014 | 2013 | $24,270 |
| 2013 | 2012 | $23,820 |
| 2012 | 2011 | $22,970 |
| 2011 | 2010 | $22,450 |
| 2010 | 2009 | $22,000 |
| 2009 | 2008 | $21,000 |
TFSA limits
- The annual TFSA limit for 2021 is the same at $6,000.
- The cumulative limit since 2009 is $75,500 (assuming you were over the age of 18 in 2009)
TFSA Limits for past years
| Year | Annual Limit | Cumulative Limit |
|---|---|---|
| 2021 | $6000 | $75,500 |
| 2020 | $6,000 | $69,500 |
| 2019 | $6,000 | $63,500 |
| 2018 | $5,500 | $57,500 |
| 2017 | $5,500 | $52,000 |
| 2016 | $5,500 | $46,500 |
| 2015 | $10,000 | $41,000 |
| 2014 | $5,500 | $31,000 |
| 2013 | $5,500 | $25,500 |
| 2012 | $5,000 | $20,000 |
| 2011 | $5,000 | $15,000 |
| 2010 | $5,000 | $10,000 |
| 2009 | $5,000 | $5,000 |
Contribution amounts for 2021
- Employee contribution = 5.45% (up from 5.25% in 2020)
- Employer contribution = 5.45% (up from 5.25% in 2020)
- Self employment = 10.9% (up from 10.5% in 2020)
- The maximum employer and employee contribution to the plan for 2021 will be $3,166.45 each and the maximum self-employed contribution will be $6,332.90. The maximums in 2020 were $2,898.00 and $5,796.00.
- CPP Benefits
- Yearly Maximum Pensionable Earning (YMPE) – $61,600
- Maximum CPP Retirement Benefit – $1203.75 per month
- Maximum CPP Disability benefit – $1413.66 per month
- Maximum CPP Survivors Benefit
- Under age 65 – $650.72
- Over age 65 – $722.25
Reduction of CPP for early benefit – 0.6% for every month prior to age 65. At age 60, the reduction is 36%.
| Year | Monthly | Annual |
|---|---|---|
| 2021 | $1203.75 | $14,445.00 |
| 2020 | $1175.83 | $14,109.96 |
| 2019 | $1154.58 | $13,854.96 |
| 2018 | $1134.17 | $13,610.04 |
| 2017 | $1114.17 | $13,370.04 |
| 2016 | $1092.50 | $13,110.00 |
| 2015 | $1065.00 | $12,780.00 |
| 2014 | $1038.33 | $12,459.96 |
| 2013 | $1012.50 | $12,150.00 |
| 2012 | $986.67 | $11,840.04 |
| 2011 | $960.00 | $11,520.00 |
| 2010 | $934.17 | $11,210.04 |
| 2009 | $908.75 | $10,905.00 |
Old Age Security (OAS)
- Maximum OAS – $615.37 per month
- The OAS Clawback (recovery) starts at $79,845 of income. At $129,075 of income OAS will be fully clawed back.
OAS rates for past years:
| Year | Maximum Monthly Benefit | Maximum Annual Benefit |
|---|---|---|
| 2021 | $615.37 | $7,384.44 |
| 2020 | $613.53 | $7,362.36 |
| 2019 | $601.45 | $7,217.40 |
| 2018 | $586.66 | $7,039.92 |
| 2017 | $578.53 | $6,942.36 |
| 2016 | $570.52 | $6,846.24 |
| 2015 | $563.74 | $6,764.88 |
| 2014 | $551.54 | $6,618.48 |
| 2013 | $546.07 | $6,552.84 |
| 2012 | $540.12 | $6,481.44 |
| 2011 | $524.23 | $6,290.76 |
New federal tax brackets
For 2021, the tax rates have changed.
| Lower Income limit | Upper Income limit | Marginal Rate Rate |
|---|---|---|
| $0.00 | $13,808.00 | 0.00% |
| $13,808.00 | $49,020.00 | 15.00% |
| $49,020.00 | $98,040.00 | 20.50% |
| $98,040.00 | $151,978.00 | 26.00% |
| $151,978.00 | $216,511.00 | 29.00% |
| $216,511.00 |
@ Henley Financial and Wealth Management Inc. 