2022 Payroll Tax Update Canada

Modified on Sat, 20 Jul at 10:15 AM

Revision History

Last updated: December 16, 2021

Note: On Dec 16, ON BASIC RED and ON SURTAX were corrected.

2022 Payroll Tax Update Canada

The following information has been summarized based on the Canada Revenue Agency publication t4127-01022e.pdf and the Revenue Quebec publication tp-1015.f-v(2022-01).pdf
This information can be obtained, in detail, at the following links:

https://www.canada.ca/en/services/taxes.html
https://www.revenuquebec.ca/documents/en/formulaires/tp/TP-1015.F-V%282022-01%29.pdf
Revenu Québec- Formulas to Calculate Source Deductions and Contributions (revenuquebec.ca)
Summary of the 2022 Actuarial Report on the Employment Insurance Premium Rate - Canada.ca (includes Employer EI amounts and Premium Reduction Program Amounts)

Disclaimer

This guide reflects some income tax changes recently announced which, if enacted as proposed, would be effective January 1, 2022. At the time of publishing, these proposed changes were not law. We recommend that you use the Payroll Deductions Online Calculator (PDOC), the publication T4032 Payroll Deductions Tables, or the publication T4008 Payroll Deductions Supplementary Tables, and the formulas in this guide for withholding, starting with your first payroll in 2022.

Federal Brackets

Please see here for information to update brackets for the new tax year.
Please note that that there is no change for Alberta, Nova Scotia, Prince Edward Island or Outside Canada.

Note: The naming convention of your brackets may vary.

Bracket	Type	Description	2022 Values
CPP LIMITS	Withholding	Exemption, rate and maximum deduction	Amount Over	Tax %	Limit
CPP LIMITS	Withholding	Exemption, rate and maximum deduction	3,500.00	5.70	3,499.80
CPP W/H	Withholding	Exemption, rate and maximum deduction	Amount Over	Tax %	Limit
CPP W/H	Withholding	Exemption, rate and maximum deduction	3,500.00	5.70	3,499.80
CPP W/H BONUS	Withholding	Exemption, rate and maximum deduction	Amount Over	Tax %	Limit
CPP W/H BONUS	Withholding	Exemption, rate and maximum deduction	0.00	5.70	3,499.80
CPP/QPP MAX	Limit + Tax%	Pensionable earnings maximum		Tax %	Limit
CPP/QPP MAX	Limit + Tax%	Pensionable earnings maximum		0.00	64,900
EI LIMITS	Withholding	Rate and maximum deduction		Tax %	Limit
EI LIMITS	Withholding	Rate and maximum deduction		1.58	952.74
EI MAX	Limit + Tax%	Insurable earnings maximum		Tax %	Limit
EI MAX	Limit + Tax%	Insurable earnings maximum		0.00	60,300
EI MAX Q	Limit + Tax%	Insurable earnings maximum		Tax %	Limit
EI MAX Q	Limit + Tax%	Insurable earnings maximum		0.00	60,300
EI W/H	Withholding	Rate and maximum deduction		Tax %	Limit
EI W/H	Withholding	Rate and maximum deduction		1.58	952.74
EI W/H Q	Withholding	Rate and maximum deduction		Tax %	Limit
EI W/H Q	Withholding	Rate and maximum deduction		1.20	723.60
FED TAX	Withholding	Withholding brackets and rates	Amount Over	Tax %	Tax Amount
			0.00	15	0.00
			50,197.00	20.5	7,529.55
			100,392.00	26	17,819.53
			155,625.00	29	32,180.11
			221,708.00	33	51,344.18
MAX EMPLOYMENT CRED	Limit + Tax	Credit limit		Tax %	Limit
MAX EMPLOYMENT CRED	Limit + Tax	Credit limit		0.00	1,287

Provincial Brackets

Please see here for information on how to update brackets for the new tax year.

For more information on Quebec Tax Brackets, see the Revenue Quebec Source Deductions and Contributions Guide for Employers 2022

Note: The naming convention of your brackets may vary.

Bracket	Type	Description		2022 Values
AB TAX	Withholding	Withholding brackets and rates	Amount Over	Tax %	Tax Amount
			0.00	10	0.00
			131,220.00	12	13,122.40
			157,464.00	13	16,271.32
			209,952.00	14	23,094.28
			314,928.00	15	37,791.20
BC TAX	Withholding	Withholding brackets and rates	Amount Over	Tax %	Tax Amount
			0.00	5.06	0.00
			43,070	7.7	2,179.34
			86,141	10.5	5,495.81
			98,901	12.29	6,835.61
			120,094	14.7	9,440.23
			162,832	16.8	15,722.71
			227,091	20.5	26,518.23
BC TAX RED	W/H Deduction	Reduction brackets, rates and limit	Amount Over	Tax %	Tax Amount	Limit
			0.00	0	0.00	481.00
			21,418.00	3.56	0.00	481.00
			34,929.00	0	481.00	481.00
MB TAX W/H	Withholding	Withholding brackets and rates	Amount Over	Tax %	Tax Amount
			0.00	10.8	0.00
			34,431	12.75	3,718.55
			74,416	17.40	8,816 .64
NB TAX W/H	Withholding	Withholding brackets and rates	Amount Over	Tax %	Tax Amount
			0.00	9.40	0.00
			44,887	14.82	4,219.38
			89,775	16.52	10,871.78
			145,955	17.84	20,152.72
			166,280	20.30	23,778.70
NL TAX W/H	Withholding	Withholding brackets and rates	Amount Over	Tax %	Tax Amount
			0.00	8.7	0.00
			39,147	14.5	3,405.79
			78,294	15.8	9,082.10
			139,780	17.8	18,796.89
			195,693	19.8	28,749.41
			250,000	20.8	39,502.19
			500,000	21.3	91,502.19
			1,000,000	21.8	198,002.19
NS TAX W/H	Withholding	Withholding brackets and rates	Amount Over	Tax %	Tax Amount
			0.00	8.79	0.00
			29,590.00	14.95	2,600.96
			59,180.00	16.67	7,024.67
			93,000.00	17.5	12,662.46
			150,000.00	21	22,637.46
NT TAX W/H	Withholding	Withholding brackets and rates	Amount Over	Tax %	Tax Amount
			0.00	5.9	0.00
			45,462	8.6	2,682.26
			90,927	12.2	6,592.25
			147,826	14.05	13,533.93
NT PTAX	Limit + Tax%	NT - Payroll Tax	Tax %		Limit
			2
NU TAX W/H	Withholding	Withholding brackets and rates	Amount Over	Tax %	Tax Amount
			0.00	4	0.00
			47,862	7	1,914.48
			95,724	9	5,264.82
			155,625	11.5	10,655.91
ON BASIC RED	Tax Credit	Reduction Amounts	Amount	Per Allowance
			257.00	Blank (Personal)
			475	Selected (Dependent)
ON SURTAX	W/H Deduction	Surtax Rates * The 36% surtax is in addition to the 20% surtax, for a total surtax of 56%.	Amount Over	Tax %	Tax Amount
			4,991	20	0.00
			6,387.00	36+20=56*	279.20
ON TAX W/H	Withholding	Withholding brackets and rates	Amount Over	Tax %	Tax Amount
			0.00	5.05	0.00
			46,226	9.15	2,334.41
			92,454	11.16	6,564.28
			150,000.00	12.16	12,986.41
			220,000.00	13.16	21,498.41
PEI TAX W/H	Withholding	Withholding brackets and rates	Amount Over	Tax %	Tax Amount
			0.00	9.8	0.00
			31,984.00	13.8	3,134.79
			63,969.00	16.7	7,548.82
QC CNT ER CONT	Limit + Tax%	Rate and maximum earnings	Tax %	Limit
			0.06	88,000.00
QC LOW RATE	Tax Credit	Total Credits Claimed x Bracket %	Tax %		Per Allowance
			15		Blank
QC RED	Deduction	Maximum income reduction	%		Max. Amount
			6		1,235.00
QC TAX W/H	Withholding	Withholding brackets and rates	Amount Over	Tax %	Tax Amount
			0.00	15	0.00
			46,295	20	6,944.25
			92,580	24	16,201.25
			112,655	25.75	21,019.25
QPIP EE	Withholding	Rate and limit	Tax %		Limit
			0.494		412.49
QPIP ER	Withholding	Rate and limit	Tax %		Limit
			0.692		577.82
QPIP MAX	Limit + Tax %	Maximum earnings	Tax %		Limit
			0		88,000.00
QPP W/H	Withholding	Exemption, rate and maximum deduction	Amount Over	Tax %	Limit
			3,500.00	6.15	3,776.10
QPP W/H BONUS	Withholding	Exemption, rate and maximum deduction	Amount Over	Tax %	Limit
			0.00	6.15	3,776.10
SK LOW RATE	Tax Credit	Total Credits Claimed x Bracket %	Tax %		Per Allowance
			10.5		Blank
SK TAX W/H	Withholding	Withholding brackets and rates	Amount Over	Tax %	Tax Amount
			0.00	10.5	0.00
			46,773	12.5	4,911.17
			133,638	14.5	15,769.29
YT TAX W/H	Withholding	Withholding brackets and rates	Amount Over	Tax %	Tax Amount
			0.00	6.4	0.00
			50,197	9	3,212.61
			100,392	10.9	7730.16
			155,625	12.8	13,750.56
			500,000.00	15	57,830.56
YT LOW RATE	Tax Credit	Reduction amounts	Tax %		Per Allowance
			6.4		blank

Changes to Payroll Objects

Support cases have been created for each client who are currently live on 2016 and prior versions for the New 2020 T4 Changes

These will be delivered to our clients as soon as available prior to December 10, 2020

Method Step Table Changes

None applicable to this tax year.

Calculation Method Changes Required

None applicable to this tax year.

TD1 Amounts

Due to the proposed changes to the Federal basic personal amount (BPAF), the existing Nova Scotia legislation to the Basic Personal Amount (BPANS) and the legislation to the Yukon Basic Personal Amount (BPAYT), the Claim Code charts cannot be produced with ranges, as was previously done. Accordingly, the Federal, the Nova Scotia and Yukon Claim Code Charts will not be produced as the BPAF, BPANS and BPAYT will be unique to each employee’s annual income. Please see here for information on how to update TD1 amounts for the new tax year.

Federal

Federal Basic Personal Amount

If Employee’s Net Income is =<1$55,625, use the Basic Personal Amount of $14,398.

If Employee’s Net Income is >=$221,708, use the Basic Personal Amount of $12,719.

If Employee’s Net Income falls between these two amounts, use the following formula:

Where $155,625 < NI* < $221,708, BPAF**= $14,398 - (NI* - $155,625) × ($1,679 / $66,083)***

* Variable NI represents Net income for the year from the employer = A + HD

** If the BPAF has three or more digits after the decimal point, increase the second digit after the decimal point by one if the third digit is five or more, and drop the third digit. If the third digit after the decimal point is less than five, drop the third digit

*** Note that there is no rounding on this division

The Federal and Yukon Claim Code chart income range is $2,430 between all claim codes once the BPAF or BPAYT has been calculated. For example, if the Federal BPAF is $12,719 for a particular employee, then claim code 2 range would be $12,719 – $15,149 and so forth up to claim code 10.

Type

Amount

see Notice Above

Provinces and Territories:

AB | BC | MB | NB | NL | NT | NS | NU | ON | PE | QC | SK | YT

Alberta

Type	Amount
Basic personal amount	19,369.00
Spouse or common-law partner amount	Up to 19,369.00

British Columbia

Type	Amount
Basic personal amount	11,302.00
Spouse or common-law partner amount	Up to 11,302.00

Manitoba

Type	Amount
Basic personal amount	10,145
Spouse or common-law partner amount	Up to 10,145

New Brunswick

Type	Amount
Basic personal amount	10,817
Spouse or common-law partner amount	Up to 10,817

Newfoundland and Labrador

Type	Amount
Basic personal amount	9,803
Spouse or common-law partner amount	Up to 9,803

Northwest Territories

Type	Amount
Basic personal amount	15,609
Spouse or common-law partner amount	Up to 15,609

Nova Scotia

Type	Amount
Basic personal amount	BPANS
Spouse or common-law partner amount	NA

BPANS = Where A ≤ $25,000, BPANS is equal to $11,481; Where $25,000 < A < $75,000, BPANS is equal to: $11,481 – [(A – $25,000) × 6%)];* Where A ≥ $75,000, BPANS is equal to $8,481 * If Nova Scotia’s basic personal amount (BPANS) has three or more digits after the decimal point, increase the second digit by one if the third digit is five or more, and drop the third digit. If the third digit after the decimal point is less than five, drop the third digit.

The Nova Scotia Claim Code chart income range is $1,600 between all claim codes once the BPANS has been calculated. For example, if Nova Scotia’s BPANS is $11,481 for a particular employee, then the claim code 2 range would be $11,481 – $13,081 and so forth up to claim code 10

Nunavut

Type	Amount
Basic personal amount	16,862.00
Spouse or common-law partner amount	Up to 16,862.00

Ontario

Type	Amount
Basic personal amount	11,141.00
Spouse or common-law partner amount	Up to 11,141.00

Prince Edward Island

Type

Amount

Basic personal amount

11,250.00

Spouse or common-law partner amount

Up to

11,250

Quebec

Type	Amount
Basic personal amount	16,143
Spouse or common-law partner amount	Up to16,143
Amount for other dependents	4,519
Amount for a child under 18 enrolled in post-secondary studies	3,101
Additional amount for person living alone (single-parent family)	2,284
Amount for a severe and prolonged impairment in mental or physical functions	3,584
Amount for a person living alone	1,850
Age amount	3,395
Amount for retirement income	3,017
Reduction threshold of the age amount, the amount for a person living alone, the amount for retirement income and the amount for a career extension	36,590

Saskatchewan

Type

Amount

Basic personal amount

16,615.00

Spouse or common-law partner amount

Up to

16,615.00

Yukon

The Yukon Basic Personal Amount (BPAYT) formula mirrors the federal Basic Personal Amount (BPAF) formula. BPAYT = BPAF

Type

Amount

Basic personal amount

BPAYT Formula

Spouse or common-law partner amount

Please refer to TD1 form for YT

Other Configurations

Please see here for information on other configuration to be updated in preparation for the new tax year.

Return to Payroll Tax Update in the Configuring Workforce section