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: 

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 ScotiaPrince 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 

3,500.00 

5.70 

3,499.80 

CPP W/H 
 
 

Withholding 

Exemption, rate and maximum deduction 

Amount Over 

Tax % 

Limit 

3,500.00 

5.70 

3,499.80 

CPP W/H BONUS 
 
 

Withholding 

Exemption, rate and maximum deduction 

Amount Over 

Tax % 

Limit 

0.00 

5.70 

3,499.80 

CPP/QPP MAX 

Limit + Tax% 

Pensionable earnings maximum 

 
 

Tax % 

Limit 

 
 

0.00 

64,900 

EI LIMITS 

Withholding 

Rate and maximum deduction 

 
 

Tax % 

Limit 

 
 

1.58 

952.74 

EI MAX 

Limit + Tax% 

Insurable earnings maximum 

 
 

Tax % 

Limit 

 
 

0.00 

60,300 

EI MAX Q 

Limit + Tax% 

Insurable earnings maximum 

 
 

Tax % 

Limit 

 
 

0.00 

60,300 

EI W/H 

Withholding 

Rate and maximum deduction 

 
 

Tax % 

Limit 
 

 
 

1.58 

952.74 

EI W/H Q 

Withholding 

Rate and maximum deduction 

 
 

Tax % 

Limit 

 
 

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 

 
 

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 

 

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