Glossary
Last updated
- Basic personal amount — A non-refundable credit every resident can claim. The 2026 federal maximum is $16,452 and it shrinks at high incomes.
- CPP — The Canada Pension Plan contribution employees pay on pensionable earnings between the basic exemption and the YMPE.
- CPP2 — The second additional CPP contribution on earnings between the YMPE and the YAMPE. For 2026 the employee maximum is $416.
- Employment insurance — EI premiums for 2026 are 1.63% of insurable earnings outside Quebec, up to $68,900. Quebec's employee rate is 1.30%.
- FHSA — A first home savings account. Contributions can be deducted, and a qualifying withdrawal for a first home is tax-free.
- HST — Harmonized sales tax combines the 5% GST with a provincial part. In 2026 it is 13% in Ontario, 14% in Nova Scotia, and 15% in three Atlantic provinces.
- Marginal tax rate — The extra tax on the next dollar of income. It is not your average tax rate, and payroll deductions can make the next dollar cost more than tax alone.
- Ontario health premium — A premium added to Ontario income tax. It is $0 at $20,000 of taxable income or less and reaches $900 at higher incomes.
- RRSP — A registered retirement savings plan. Contributions can be deducted up to your limit. Withdrawals are generally taxable.
- TFSA — A tax-free savings account shelters contributions and growth. Contributions are not deducted, and qualifying withdrawals are not taxed.
- YMPE — The year's maximum pensionable earnings. For 2026 the YMPE is $74,600 and the YAMPE for CPP2 is $85,000.