A new calendar year requires updates to your payroll deductions. To help you out, we have prepared a chart with both federal and provincial/territorial payroll deductions for 2025.
| Deduction |
Rate |
| Employment Insurance (EI) |
Federal:
Maximum insurable earnings: $65,700
Maximum employee premium: $1077.48
Maximum employer premium: $1508.47
Employee: 1.64%
Employer: 1.64 x 1.4 = 2.296%
Reduced rate for Quebec:
Maximum insurable earnings: $65,700
Maximum employee premium: $860.67
Maximum employer premium: $1,204.94
Employee: 1.31%
Employer: 1.31 x 1.4 = 1.834%
Some employees related to the employer may be exempt from paying Employment Insurance premiums – please read our article to learn more.
|
| Canada Pension Plan (CPP) |
Maximum Pensionable Earnings: $71,300
Basic Exemption: $3,500
Maximum Employee Premium: $4,034.10
Maximum Employer Premium: $4,034.10
Self-employed Maximum Premium: $8.068.20
Employee and employer contribution rate: 5.95%
Self-employed: 11.9%
CPP2: Earnings between $71,300 and $81,200 will be subject to additional CPP contributions, known as CPP2.
Employee and employer CPP2 contribution rate: 4%
Maximum CPP2 contribution (employer and employee): $396.00
Self-employed CPP2 rate: 8%
Maximum self-employed CPP2 contribution: $792.00
|
| Quebec Pension Plan (QPP) |
Maximum Insurable Earnings: $71,300
General Exemption: $3,500
Maximum Employee Premium: $4,339.20
Maximum Employer Premium: $4,339.20
Self-employed Maximum Premium: $8,678.40
Employee and Employer contribution rate: 6.4%
Self-employed: 12.8%
QPP2: Earnings between $71,300 and $81,200 will be subject to additional QPP contributions, known as QPP2.
Employee and employer QPP2 contribution rate: 4%
Maximum QPP2 contribution (employer and employee): $396.00
Self-employed QPP2 rate: 8%
Maximum self-employed QPP2 contribution: $792.00
|
| Federal Income Tax – Personal amount |
Basic Deduction: $16,129; but when net income is more than amount at which the 29% tax bracket begins, use the TD1-WS Worksheet to find basic deduction amount. |
Alberta
Provincial income tax:
- Basic personal deduction: $22,323
Workers’ Compensation:
Minimum Wage:
- Currently $15.00 per hour
British Columbia
Provincial Income Tax
- Basic personal deduction: $12,932
Workers’ Compensation
Employer Health Tax
BC's Employer Health Tax is separate and distinct from remitting source deductions.
Employers can be an individual, corporation or partnership. Associated employers are required to share any exemption amount they may qualify for.
The EHT is based on remuneration paid to employees who report to work in BC and employees who do not report to work in BC but their wages are paid through a permanent establishment in BC.
How the tax works:
- Total B.C. payroll of $1,000,000 or less: Exempt
- $1,000,001 to $1.5 million: 5.85% on the amount in excess of $1,000,000 (notch provision)
- Over $1.5 million: 1.95% of the total payroll (the $500,000 is not a deduction)
Use the employer health tax calculator to help you estimate the tax. You must register for the EHT if you must pay the tax.
Minimum wage
- As of June 1, 2024: $17.40 per hour
Saskatchewan
Provincial Income Tax
- Basic Personal Exemption: $18,991
Workers’ Compensation
Minimum Wage
- As of October 1, 2024: $15.00 per hour
Manitoba
Provincial Income Tax
- Basic personal deduction: $15,969
Worker’s Compensation
Health and Post-Secondary Education Tax Levy (HE Levy)
Health and Post Secondary Education Tax Levy (HE Levy) – also known as the Manitoba Payroll Tax – is based on annual payroll paid by employers with permanent establishment in Manitoba.
Associated corporations/certain corporate partnerships share the $2.25 million exemption based on the total of their combined payroll.
- $2.25 million or less: Exempt
- $2.25 and $4.5 million: 4.3% on the amount in excess of $2.25 million (notch provision)
- Over $4.5 million: 2.15% of the total payroll (the $2.25 million is not a deduction)
Minimum wage
- As of October 1, 2024: $15.80 per hour
Ontario
Provincial Income Tax
- Basic Personal Exemption: $12,747
Workers’ Compensation
Employer Health Tax
This is a tax paid by the employer and not deducted from employees
- Exemption threshold: $1 million
- Tax rate above the threshold is .98% to 1.95% depending on how much over the threshold the payroll is
- More information available from the Ministry of Finance
Minimum Wage
- As of October 1, 2024: $17.20 per hour
- Student minimum wage $16.20 per hour
Quebec
Provincial Income Tax
- Basic Personal Exemption: $18,056
Quebec Parental Insurance Plan (QPIP)
- Maximum Insurable Earnings: $98,000
- Maximum Employee premium: $484.12
- Maximum Employer premium: $678.16
- Self-employed Maximum Premium: $860.44
- Employee rate: 0.494%
- Employer rate: 0.692%
- Self-employed rate: 0.878%
Health Services Fund
- Based on payroll
- Primary and manufacturing sectors
- Less than $1 million: 1.25%
- $1-$7.8 million: between 1.25% and 4.26%
- More than $7.8 million: 4.26%
- Other SMEs
- Less than $1 million: 1.65%
- $1-$7.8 million: between 1.65% and 4.26%
- More than $7.8 million: 4.26%
- More information from Revenu Quebec
Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST)
Contribution to the Workforce Skills Development and Recognition Fund (WSDRF)
- Commonly known as the 1% Law
- 1% of payroll if it is greater than $2 million
Contribution related to Labour Standards
- Maximum insurable: $98,000
- Employer rate: 0.06%
- Some remunerations are not subject to this contribution, including employers who are federally regulated
- More information from Revenu Quebec
Minimum Wage
- As of May 1, 2024: $15.75 per hour
- Employees receiving gratuities and tips: $12.60 per hour
New Brunswick
Provincial Income Tax
- Basic Personal Exemption: $13,396
Workers’ Compensation
Minimum Wage
- As of April 1, 2024: $15.30 per hour
Newfoundland and Labrador
Provincial Income Tax
- Basic personal exemption: $11,067
Workers Compensation
- Maximum assessable earnings: $79,345
- Based on classification
- Want to reduce your WorkplaceNL bill? Read our information on PRIME
Health and Post-Secondary Education Tax (HAPSET)
- Exemption threshold: $2 million
- Payroll tax of 2% on payrolls above the exemption threshold
- More information on the Department of Finance website.
Minimum Wage
- As of April 1, 2024: $15.60 per hour
Nova Scotia
Provincial Income Tax
- Basic Personal Exemption: $11,744
Workers’ Compensation
Minimum Wage
- As of April 1, 2024: $15.20 per hour
Prince Edward Island
Provincial Income Tax
- Basic Personal Exemption: $14,250
Workers’ Compensation
Minimum Wage
- As of October 1, 2024: $16.00 per hour
Northwest Territories
Territorial Income Tax
- Basic Personal Exemption: $17,842
Payroll Tax
- Payroll Tax of 2% on all earnings
- Deducted by the employer from the employee’s pay
- Employer must remit to the government
Workers’ Compensation
Minimum Wage
- As of September 1, 2024: $16.70 per hour
Yukon
Territorial Income Tax
- Basic Personal Exemption: $16,129
Workers’ Compensation
Minimum Wage
- As of April 1, 2024: $17.59 per hour