Change coming to 2023 Tax

This year the deadline for filing your 2022 tax return in Canada is 30 April, according to the Canada Revenue Agency (CRA).

Prepare for your tax return

  • Collect T4 and T4A slips
  • Other Incomes – foreign investments, assets, self-employment and more
  • EI, CPP & RRSP contribution
  • Employer pension plan
  • Eligible union and professional dues
  • Student Loans
  • Child Care expenses
  • Support payment
  • Moving expenses related to work, starting a small business or furthering education

Tax Changes in 2023

New Tax brackets –

  • Up to $50,197 of income is taxed at 15%.
  • Income between $50,197 and $100,392 is taxed at 20.5%.
  • Income between $100,392 and $155,625 is taxed at 26%.
  • Income between $155,625 and $221,708 is taxed at 29%.
  • Above $221,708, income is taxed at 33%.

Basic Personal Amount (BPA) – is a non-refundable tax credit that can be claimed by anyone who files income taxes in Canada.

The Government of Canada set a goal of amending the Basic Personal Amount to $15,000 by 2023. This is being done in phases, so the BPA is increasing to $14,398 for the 2022 tax year. 

First-time home Buyer’s Tax Credit (HBTC) – eligible first-time home buyers can now claim a $10,000 non-refundable income tax credit.

There’s no need to apply for the HBTC; just enter the Home Buyer’s Amount of $10,000 on Line 31270 of your income tax return.

Old Age Security (OAS) income – Seniors who make too much income are sometimes asked to pay back some of their OAS. 

The new thresholds for the 2022 tax year are as follows:

  • Minimum income recovery threshold: $80,761.
  • Maximum recovery thresholds for ages 65-74: $134,626.
  • Maximum recovery threshold for ages 75 and above: $137,331.

Canadian Pension Plan (CPP) – The maximum pensionable earnings under the CPP will be $66,600 in 2023, up from $64,900 in 2022. The basic exemption amount stays the same at $3,500 in 2023. 

  • Employee and employer contribution – maximum contribution of $3,754.45
  • Self-employed individuals – maximum contribution of $7,508.90

Registered Retirement Savings Plans (RRSP) – The annual dollar limit for RRSP, is $29,210 for the 2022 tax year, up from $27,830 in 2021.

COVID-19 benefit repayment – Individual who receives COVID-19 benefits in 2022 will receive a T4A slip for their tax return.

COVID-19 benefits-

  • Canada Emergency Response Benefit (CERB)
  • Canada Emergency Student Benefit (CESB)
  • Canada Recovery Benefit (CRB)
  • Canada Recovery Caregiving Benefit (CRCB)
  • Canada Recovery Sickness Benefit (CRSB)
  • Canada Worker Lockdown Benefit (CWLB)

CONSULT a professional tax expert or accountant or visit the CRA’s website.