Is the tax calculation below for a hypothetical Canadian resident living in Ontario correct?
Gross income - CAD 100K
Foreign capital gains - USD 20K
Dividends - USD 2K
Assume 18% (CAD 18000) is contributed to an RRSP.
According to
Federal tax rates for 2020
15% on the first $48,535 of taxable income, plus.
20.5% on the next $48,534 of taxable income (on the portion of taxable income over 48,535 up to $97,069), plus.
26% on the next $53,404 of taxable income (on the portion of taxable income over $97,069 up to $150,473), plus.
Federal tax on gross income = 0.15 * 48535 + .205 * (82000 - 48534) = 14141
Federal tax credit = 12069 * .15 = 1810
Net federal tax = 12331
Ontario
5.05% on the first $44,740 of taxable income, +
9.15% on the next $44,742, +
11.16% on the next $60,518, +
12.16% on the next $70,000, +
13.16 % on the amount over $220,000
Provincial tax on gross income = 0.0505 * 44780 + 0.0915 * (82000 - 44742) = 5670
So total tax is at least 18001 CAD.
I am not sure how foreign capital gains and dividends are taxed. Can someone help in this regard? Also, is there no standard deduction or pre-tax deductions to retirement accounts other than RRSP? What are the limits for the latter? I came across https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/canada-pension-plan-cpp/cpp-contribution-rates-maximums-exemptions.html but did not understand how to apply these.
