Federal 2004 tax rates on taxable income:
- 16% up to $35,000
- 22% from $35,001 to $70,000
- 26% from $70,001 to $113,804
- 29% over $113,804
Alberta's 2004 tax rates on taxable income:
Capital gains
50% of the actual capital gain is included in income
Registered Retirement Savings Plans (RRSPs):
Contribution limit is 18% of the previous year's earned income (less any previous year's pension adjustments plus any pension adjustment reversals).
Earned income includes:
- employment earnings, less union dues and/or employment expenses
- research grants
- self-employment net income
- active partnership income
- net rental income and/or current year rental losses
- royalties
- CPP disability pensions
- Alimony or separation payments
- Employee profit sharing plan distributions
Annual RRSP maximum contributions:
- $14,500 in 2004
- $15,500 in 2005
- $18,000 in 2006
- indexed in 2007 and beyond (based on the average wage growth in Canada)
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