A new year means new limits and data. Here’s a list of new financial planning data for 2017 (In case you want to compare this to past years, I’ve included old data as well).
Pension and RRSP contribution limits
- The new limit for RRSPs for 2017 is 18% of the previous year’s earned income or $26,010 whichever is lower less the Pension Adjustment (PA).
- The limit for Deferred Profit Sharing Plans is $13,115
- The limit for Defined Contribution Pensions is $26,230
Remember that contributions made in January and February of 2017 can be used as a tax deduction for the 2016 tax year.
| Tax Year | Income from | RRSP Maximum Limit |
|---|---|---|
| 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 |
More articles on RRSPs
- How to find out your exact RRSP limits
- The proper use of RRSPs: the one formula approach
- Lesser Known Facts of RRSPs
- Do Spousal RRSPs still make sense?
- Advantages of Self-Directed RRSPs
TFSA limits
- The TFSA limit for 2017 is $5,500.
- The cumulative limit since 2009 is $52,000
TFSA Limits for past years
- $5000 for 2009,
- $5000 for 2010,
- $5000 for 2011,
- $5000 for 2012,
- $5500 for 2013,
- $5500 for 2104,
- $10,000 for 2015 (new 2015 Federal Budget)
- $5500 for 2016 (new Liberal Government)
More articles on the TFSA
- TFSA Basics: Contributions and Withdrawals
- Understanding the Tax-Free Savings Account (TFSA)
- TFSA or RRSP: Why not do both?
Canada Pension Plan (CPP)
Lots of changes are happening with CPP but here’s some of the most important planning data.
- Yearly Maximum Pensionable Earning (YMPE) – $55,300
- Maximum CPP Retirement Benefit – $1114.17 per month
- Maximum CPP Disability benefit – $1313.66 per month
- Maximum CPP Survivors Benefit
- Under age 65 – $604.32
- Over age 65 – $668.50
Reduction of CPP for early benefit – 0.6% for every month prior to age 65. At age 60, the reduction is 36%.
CPP rates for past years:
- 2017 – $1114.17 per month
- 2016 – $1092.50 per month
- 2015 – $1,065.00 per month
- 2014 – $1,038.33 per month
- 2013 – $1,012.50 per month
- 2012 – $986.67 per month
- 2011 – $960.00 per month
- 2010 – $934.17 per month
- 2009 – $908.75 per month
For more information on CPP
- Four reasons why you should still take CPP early (post 2011 rules)
- Three current debates of Canada Pension Plan
- How much will you get from Canada Pension Plan in Retirement?
- New proposed changes for CPP
- Will Canada Pension Plan (CPP) be there when you retire?
Old Age Security (OAS)
- Maximum OAS – $578.53 per month
- The OAS Clawback (recovery) starts at $73,756 of income. At $119,615 of income OAS will be fully clawed back.
OAS rates for past years:
- 2016 – $570.52 per month
- 2015 – $563.74 per month
- 2014 – $551.54 per month
- 2013 – $546.07 per month
- 2012 – $540.12 per month
- 2011 – $524.23 per month
For more information on OAS Clawback:
New Federal Tax Brackets
For 2017, the tax rates have changed.
- $0 to $11,635 – Personal Exemption
- $11,635 to $45,916 – 15% marginal tax rate
- $45,916 to $91,831 – 20.5% marginal tax rate
- $91,831 to $142,353 – 26% marginal tax rate
- $142,353 to $202,800 – 29% marginal tax rate
- Over $202,800 – 33% marginal tax rate (new bracket added)
Remember these rates do not include provincial tax.
For new provincial rates, visit the CRA site
Provincial tax rates are also subject to change when the Federal and provincial budgets are released later in 2016.
For more information on tax rates
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