Canada Tax FAQs – Payroll Tax Rates For 2017

Grant Gilmour

What are the payroll tax rates changes for 2017 for withholdings?Payroll tax rates change every year and it is important for you to know the correct rates when preparing payroll remittances.

Please visit our payroll tax post for more figures and for updated rates for 2017 with 2016 comparison. Or read the entire chart below.


Canada Pension Plan 2016 2017
Annual maximum pensionable earnings $54,900 $55,300
Annual basic exemption $3,500 $3,500
Contribution rate 4.95% 4.95%
Annual maximum employee contribution $2,544.30 $2,564.10
Annual maximum employer contribution $2,544.30 $2,564.10


Employment Insurance 2016 2017
Annual maximum insurable earnings $50,800 $51,300
Annual maximum employee contribution $955.04 $836.19
Employee contribution rate 1.88% 1.63%
Employer contribution rate 2.63% 2.28%


Federal Tax Credits 2016 2017
Basic personal $11,474 $11,635
Spouse/Equivalent to spouse $11,474 $11,635


B.C. Provincial Tax Credits 2016 2017
Basic personal $10,027 $10,208
Spouse/Equivalent to spouse $8,586 $8,740

Grant has been in the CA business since 1988, starting his own practice in 1994. His tax expertise encompasses tax planning, international tax issues, and Scientific Research and Development tax credits. He is a graduate of the CICA In-Depth Tax Course and in 2012, Grant received the CA Community Service Award and the Scout Leader Medal.

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One thought on “Canada Tax FAQs – Payroll Tax Rates For 2017

  1. Steven Stern says:

    I have a friend that is going to invest in a Canadian corp. He is a US citizen residing in the US. Most likely will do it through a US LLC. Is there any better way to set it up through any other type of entity? Want to do what is best for liability and tax issues. Any advice is most appreciated.

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