Change coming to 2024 Tax

This year, the deadline for filing your 2023 tax return in Canada is 30 April, according to the Canada Revenue Agency (CRA).

  • February 19, 2024: Earliest day to file your taxes online
  • April 30, 2024: Deadline to file your taxes
  • June 15, 2024: Deadline to file your taxes if you or your spouse or common-law partner are self-employed

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

Higher Interest Rates For Late Taxes – The Canada Pension Plan contributions and employment insurance premiums will rise 10% from 9%. The interest rate applies to any unpaid personal income tax balance after April 30.

Paying tax installments and income tax balances on time is crucial to avoid interest charges.

Tax Changes in 2024

New Federal Tax brackets –

  • Up to $53,359 of income is taxed at 15%.
  • Income between $53,359 and $106,717 is taxed at 20.5%.
  • Income between $106,717 and $165,430 is taxed at 26%.
  • Income between $165,430 and $235,675 is taxed at 29%.
  • Above $235,675, 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 $15,000 for the 2023 tax year. 

Home Office Expenses – For Home Office, the Canada Revenue Agency’s (CRA) flat rate of $2 per day from 2020 to 2022 is no longer active for the 2023 taxation year.
According to the CRA, employees must use the detailed method and obtain a completed Form T2200 signed by their employer to claim home office expenses for 2023.

Carbon Tax Set To Climb – On April 1, 2024, the federal carbon tax will increase to $80 per tonne from $65 per tonne. The carbon tax applies to all taxpayers except those in Quebec. As a result, the price per litre of gas climbs to 17.6 cents from 14.3 cents.

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 2023 tax year are as follows:

  • Minimum income recovery threshold: $86,912.
  • Maximum recovery thresholds for ages 65-74: $142,609.
  • Maximum recovery threshold for ages 75 and above: $148,179.

Canadian Pension Plan (CPP) – The maximum pensionable earnings under the CPP will be $68,500 in 2024, up from $66,600 in 2023. The basic exemption amount will stay the same at $3,500 in 2024. 

  • Employee and employer contribution – maximum contribution of $3,867.50
  • Self-employed individuals – maximum contribution of $7,735.00

Registered Retirement Savings Plans (RRSP) – RRSP’s annual limit is $30,780 for the 2023 tax year, up from $29,210 in 2022.

Employment Insurance (EI) – For Employees, maximum annual insurable earnings increased from 1.63 percent for $61,500 in 2023 to 1.66 percent for $63,200 in 2024 (i.e. maximum yearly premium of $1,049.12).
The rate for employers rose from 2.28 percent in 2023 to 2.32 percent this year (i.e., a maximum annual premium of $1,468.77).

For Quebec residents, the EI rate rose from 1.27 percent for $61,500 to 1.32 percent for $63,200.
For Quebec employers, the rate grew from 1.78 percent to 1.85 percent, making their maximum annual contribution $1,167.94.

Digital Service Tax – This year, expect a new 3% digital services tax. This tax aims to get tech giants like Amazon, Uber, and Facebook to pay their fair share of taxes.

Alcohol Taxes – Starting April 1, 2024, the excise tax on beer, wine, and spirits will increase by 4.7%.

COVID-19 benefit repayment – Individual who receives COVID-19 benefits in 2023 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.