Explore the latest tax changes in Canada for 2024, from adjusted federal tax brackets to important adjustments affecting your financial landscape. Stay informed to make the most of your financial planning.
1. New Federal Tax Brackets:
Adjusted to account for inflation, resulting in lower tax rates for various income ranges.
2. New Alternative Minimum Tax Rate:
Proposed increase to 20.5% from the previous 15%, set to take effect on January 1, 2024, ensuring high-income individuals pay a minimum tax.
3. End of Flat-Rate Home Office Deductions:
Flat-rate method introduced during the COVID-19 pandemic will no longer apply in 2023 and beyond, requiring detailed documentation for home office expense deductions.
4. EI Premium Rate Hike:
Effective January 2, 2024, employment insurance (EI) premium rates will rise, affecting both workers and employers.
5. Basic Personal Amount (BPA) Increase:
BPA raised to $15,705 for 2024, providing tax relief for lower-income individuals and a reduced enhancement for higher earners.
6. RRSP Dollar Limit Increase:
The annual contribution limit for Registered Retirement Savings Plans (RRSPs) increased to $30,780 for the 2023 tax year.
7. TFSA Dollar Limit Increase:
Contribution limits for Tax-Free Savings Accounts (TFSAs) rose to $7,000 in 2024, potentially providing individuals with significant unused contribution room.
8. Increase in Unpaid Tax Penalty:
Penalty raised to 10% of unpaid tax in 2024.
Additional 2% per month for late filing.
Filing on time reduces costs.
9. COVID-19 Benefits:
Work-From-Home credit expired.
Canada Worker Lockdown Benefit ended.
Ontario Staycation Tax Credit not extended.
10. New Grocery Rebate:
Available for eligible Canadians.
Equals double GST/HST credit from January 2023.
11. Digital Disability Tax Credit Application:
Apply online via My CRA Account.
Streamlined process with no physical forms.
12. Increased Basic Personal Amount (BPA):
BPA raised to $15,705 for 2024.
Potential for future increases.
13. Adjusted Tax Brackets:
Upward adjustments for 2023.
May shift taxpayers into lower brackets.
14. TFSA and RRSP Limits:
TFSA limit: $7,000 for 2024.
Cumulative TFSA limit of up to $95,000.
RRSP limit: $30,780 for 2023.
15. New OAS Limit Amounts:
Repayment if taxable income exceeds $81,761.
No OAS payments above $134,626.
Comments