Updates
Updates include calculation and rate changes to reflect current tax law resulting from inflation adjustments, legislative changes, and review of supported authorities. Effective dates indicate when the changes enter into force. Amounts are annual unless stated otherwise.
Argentina
Made the following changes, effective September 1, 2021, unless stated otherwise:
Income Tax: Increased the earned income allowance by ARS 300,000 to ARS 2.1 million.
Social Security:
Increased the employee wage ceiling by ARS 980,009 to ARS 3.7 million.
Decreased the employer contribution rate by 0.3% to 25.5%, effective January 1, 2022.
Austria
Income Tax: Enhanced the calculation for inbound assignments from EEA countries to deduct home country social security contributions.
Belgium
Social Security: Corrected the employer contributions resulting in a decrease of 0.3% to 26.7% and listed the three key contributions in the enhanced details.
Canada
Increased the following, effective January 1, 2022:
Income Tax:
By the indexing rate of 2.4%:
Tax bracket thresholds. The threshold for the top rate of 33% increased by CAD 5,196 to CAD 221,708.
Minimum personal amount by CAD 298 to CAD 12,719.
Personal amount phaseout threshold by CAD 3,628 to CAD 155,625.
Employment amount by CAD 30 to CAD 1,288.
Maximum personal amount by CAD 590 to CAD 14,398.
Maximum voluntary pension deduction by CAD 1,570 to CAD 30,780.
Social Security:
Pension plan (CPP) wage ceiling and contribution rate by CAD 3,300 to CAD 64,900 and 0.25% to 5.7%, respectively.
Employment insurance wage ceiling by CAD 4,000 to CAD 60,300.
British Columbia
Income Tax: Increased the following by the indexing rate of 2.1%, effective January 1, 2022:
Tax bracket thresholds. The threshold for the top rate of 20.5% increased by CAD 4,671 to CAD 227,091.
Personal amount by CAD 232 to CAD 11,302.
Spouse and dependent amounts by CAD 199 to CAD 9,678.
Ontario
Income Tax: Increased the following by the indexing rate of 2.4%, effective January 1, 2022:
Two lowest tax bracket thresholds. The threshold for the top rate of 13.16% remains CAD 220,000.
Surtax bracket thresholds. The threshold for the top rate of 36% increased by CAD 150 to CAD 6,387.
Personal amount by CAD 261 to CAD 11,141.
Spouse and dependent amounts by CAD 222 to CAD 9,460.
Quebec
Increased the following, effective January 1, 2022:
Income Tax: By the indexing rate of 2.64%:
Tax bracket thresholds. The threshold for the top rate of 25.75% increased by CAD 2,900 to CAD 112,655.
Personal and spouse amounts by CAD 415 to CAD 16,143.
Maximum deduction for workers by CAD 30 to CAD 1,235.
Social Security:
Pension plan (QPP) and employment insurance wage ceilings in accordance with federal amounts.
Pension plan contribution rate by 0.25% to 6.15%.
Employee and employer employment insurance contribution rates by 0.02% to 1.2% and 0.028% to 1.68%, respectively.
Parental insurance plan (QPIP) wage ceiling by CAD 4,500 to CAD 88,000, by the indexing rate of 5.89%.
Costa Rica
Social Security: Corrected the home Grossup Only calculation for assignments where Tax Resident is Yes and host income tax is not exempted by a tax treaty. The previous calculation resulted in an overstatement of tax.
Czech Republic
Increased the following, effective January 1, 2022:
Income Tax: Personal credit by CZK 3,000 to CZK 30,840.
Income Tax & Social Security: Solidarity tax threshold and social security wage ceiling by CZK 166,560 to CZK 1.9 million.
Denmark
Income Tax: Decreased the basic tax rate by 0.01% to 12.1%, effective January 1, 2022.
Finland
Income Tax: Enhanced the calculation for inbound assignments from EEA countries to deduct home country social security contributions.
Germany
Income Tax: Increased the deductible portion of the mandatory pension contribution from 84% effective for 2021 by 4% per year until reaching 100% for 2025.
Greece
Income Tax: Enhanced the calculation for inbound assignments from EEA countries to deduct home country social security contributions.
Indonesia
Income Tax: Made the following updates, effective January 1, 2022:
Added the top rate of 35% applicable to income over IDR 5 billion.
Increased the threshold for the 15% bracket by IDR 10 million to IDR 60 million.
Kenya
Social Security: Removed the 1.5% housing contribution on income up to KES 2,000,000 for employees and employers as it is no longer mandatory.
Myanmar
Income Tax: Increased the tax bracket thresholds, effective October 1, 2021. The threshold for the top rate of 25% increased by MMK 40 million to MMK 70 million.
Netherlands
Social Security: Increased the employers’ disability insurance contribution rate by 0.13% to 9.02% due to a change in the business sector used for the work resumption component from general industrial to other businesses and professions. The rate for this sector is 1.49%.
Norway
Income Tax: Increased the minimum deduction by 1% to 46% of gross income, effective January 1, 2021. The deduction cap of NOK 106,750 remains unchanged.
Philippines
Social Security: Increased the employee and employer health insurance contributions by PHP 4,500 to PHP 19,200, effective January 1, 2022.
Puerto Rico
Income Tax:
Increased the following, effective January 1, 2022:
Maximum deduction for employee voluntary pension by USD 1,000 to USD 20,500 for employees under age 50 and to USD 27,000 for employees 50 and older.
Maximum tax relief for employee and employer voluntary pension contributions by USD 3,000 to USD 61,000.
Corrected the personal exemption when the filing status is set as married filing joint to calculate USD 3,500. Previously, USD 7,000 was calculated resulting in an understatement of tax. Married individuals in this jurisdiction file individually. The filing status input of this estimator is used to calculate the wage base for the additional medicare tax.
Social Security: OASDI wage ceiling by USD 4,200 to USD 147,000.
Romania
Income Tax: Enhanced the calculation for inbound assignments from EEA countries to deduct home country social security contributions.
Senegal
Social Security: Corrected the inbound part year calculation to use monthly wage ceilings. Previously, annual ceilings were used, resulting in a potential overstatement of tax.
Slovenia
Income Tax:
Corrected the inbound part year calculation to use monthly amounts for the tax bracket thresholds, personal deduction, and dependent deduction. Previously, annual amounts were used, resulting in an understatement of tax.
Enhanced the calculation for inbound assignments from EEA countries to deduct home country social security contributions.
South Africa
Social Security: Increased the unemployment insurance wage ceiling by ZAR 34,080 to ZAR 212,544, effective June 1, 2021.
South Korea
Social Security: Increased the following:
Pension wage ceiling by KRW 2.5 million to KRW 62.9 million, effective July 1, 2021.
Employee and employer national health insurance contribution rates by 0.1% to 3.9%, effective January 1, 2022.
Spain
Social Security: Corrected the work accident contribution rate to 1.5%, effective January 1, 2019. The previous 1% rate resulted in a potential understatement of tax.
Sweden
Income Tax: Increased the price base by SEK 700 to SEK 48,300, effective January 1, 2022, which increased the following:
Employment income credit amounts and thresholds. The maximum credit increased by SEK 391 to SEK 26,980 and the phaseout threshold increased by SEK 9,478 to SEK 653,982.
Personal allowance amounts and thresholds. The maximum allowance increased by SEK 539 to SEK 37,191 and the phaseout threshold increased by SEK 2,177 to SEK 150,213.
Maximum employer voluntary pension deduction by SEK 7,000 to SEK 483,000.
Switzerland
Berne
Income Tax: Decreased the cantonal tax rate by 0.035% to 3.025%, effective January 1, 2021.
Geneva
Income Tax: Increased the following deductions, effective January 1, 2021:
General employment by CHF 28 to CHF 1,725.
Insurance premium for single and married individuals, and their dependents. The deduction increased by CHF 36 to CHF 2,232 for single taxpayers.
Zug
Income Tax: Increased the personal allowance by CHF 100 to CHF 11,200, effective January 1, 2022.
Ukraine
Social Security: Increased the employer wage ceiling by UAH 90,000 to UAH 1.2 million, effective December 1, 2021.
United Kingdom
Income Tax:
Changed the following immigration related line items to nontaxable for inbounds with the Permanent assignment type, consistent with other inbound and outbound assignment types:
Employee Passport Work Permit Costs
Family Passports and Visas
United States
Increased the following, effective January 1, 2022:
Income Tax:
Tax bracket thresholds. The threshold for the top rate of 37% increased by USD 16,300 to USD 539,900 for single taxpayers.
Standard deductions. The deduction increased by USD 400 to USD 12,950 for single taxpayers.
Maximum deduction for employee voluntary pension contributions by USD 1,000 to USD 20,500 for employees under age 50 and to USD 27,000 for employees 50 and older.
Maximum tax relief for employee and employer voluntary pension contributions by USD 3,000 to USD 61,000.
Foreign earned income exclusion by USD 3,300 to USD 112,000.
Alternative minimum tax thresholds, exemptions, and exemption phaseout thresholds.
Social Security: OASDI wage ceiling by USD 4,200 to USD 147,000.
Arizona
Income Tax: Decreased the following, effective January 1, 2022:
Number of tax brackets from five to three.
Tax rates and thresholds. The new top rate of 4.5% applies to income over USD 250,000 for single taxpayers.
California
Income Tax:
Increased the following, retroactively effective January 1, 2021:
Tax bracket thresholds. The threshold for the top rate of 12.3% increased by USD 26,357 to USD 625,369 for single taxpayers. Combined with the 1% tax imposed on income exceeding USD 1 million for mental health services, the top rate remains at 13.3%.
Phaseout threshold for itemized deductions and exemption credits. The threshold increased by USD 8,948 to USD 212,289 for single taxpayers.
Standard deductions and exemption credits.
Corrected the effective rate calculation to adjust federal income by disallowed federal exclusions and qualified moving expenses. The effective rate is applied to state income to derive state tax.
District of Columbia
Income Tax: Updated the tax table, effective January 1, 2022:
Decreased the upper threshold of the 8.5% bracket by USD 100,000 to USD 250,000.
Replaced the 8.75% bracket with two brackets:
25% on income between USD 250,000 and USD 500,000.
75% on income between USD 500,000 and USD 1 million.
Increased the rate applicable to income over USD 1 million by 1.8% to 10.75%.
Georgia
Income Tax: Increased the standard deductions, effective January 1, 2022. The deduction increased by USD 800 to USD 5,400 for single taxpayers.
Iowa
Income Tax: Increased the following, effective January 1, 2022:
Tax bracket thresholds. The threshold for the top rate of 8.53% increased by USD 3,015 to USD 78,435.
Standard deductions. The deduction increased by USD 80 to USD 2,210 for single taxpayers.
Kentucky
Income Tax: Increased the standard deduction by USD 80 to USD 2,770, effective January 1, 2022.
Mississippi
Income Tax: Eliminated the 3% tax bracket which applied to income between USD 4,000 and USD 5,000, effective January 1, 2022. Income below USD 5,000 is not subject to tax.
Montana
Income Tax: Decreased the top tax rate by 0.15% to 6.75%, effective January 1, 2022.
Oklahoma
Income Tax: Decreased the tax rates by 0.25%, effective January 1, 2022. The top rate of 4.75% applies to income over USD 7,200 for single taxpayers.
Oregon
Income Tax: Increased the following by the indexing rate of 3%, effective January 1, 2022. Amounts apply to single taxpayers:
Tax bracket thresholds for the 6.75% and 8.75% brackets. The threshold for the top rate of 9.9% remains USD 125,000.
Standard deductions. The deduction increased by USD 70 to USD 2,420.
Exemption credit by USD 6 to USD 219.
Wisconsin
Income Tax: Increased the following by the indexing rate of 5.25%, effective January 1, 2022. Amounts apply to single taxpayers:
Tax bracket thresholds. The threshold for the top rate of 7.65% increased by USD 14,020 to USD 280,950.
Standard deductions and phaseout thresholds. The deduction and phaseout threshold increased by USD 590 to USD 11,790 and by USD 841 to USD 16,990, respectively.
Venezuela
Income Tax:
Redenominated the Bolivar Soberano (VES) by removing six zeros, effective October 1, 2021. Beginning with v.21.6, this estimator calculates and displays amounts using the redenominated VES. Exchange rates in AssignmentPro should be updated to use post-September 30th
Increased the tax unit by VES 18,500 to VES 20,000, effective April 6, 2021, which increased the following:
Tax bracket thresholds. The threshold for the top tax rate of 34% increased by VES 111 to VES 120.
Standard deduction by VES 14.3 to VES 15.5.
Income Tax Treaties
Added the following treaties, effective January 1, 2022:
Argentina - Qatar
Azerbaijan - Spain
Bahrain - Switzerland
Brazil - Switzerland
Brazil - United Arab Emirates
Colombia - Italy
Costa Rica - United Arab Emirates
Hungary - Iraq
Japan - Uruguay
Saudi Arabia - Switzerland
Serbia - Singapore
Removed the following treaties due to termination:
Denmark - Trinidad and Tobago
Germany - United Arab Emirates
Netherlands - Russia
Social Security Agreements
Added the agreement between South Korea and Uruguay with a coverage period of 60 months, effective November 1, 2021.
Decreased the coverage period for the agreement between Egypt and Greece from 60 to 24 months, effective September 1, 2020.