Section 1 - Tax System

Since 2021, in New Brunswick, the tax rate applicable to the first taxable income bracket has been reduced from 9.68% to 9.4% and the income reduction threshold for low-income individuals has been increased from $17,630 to $17,840.

Section 2 – Individuals and Families
  • Taxpayers who repay a federal COVID-19 benefit before 2023 can claim a deduction in the year the benefit was received rather than the year it was refunded.[1]

    1 Includes the following benefits: Canada Emergency Response Benefit (CERB), Canada Emergency Student Benefit (CESB), Canada Recovery Benefit (CRB), Canada Recovery Sickness Benefit (CRSB) or Canada Recovery Caregiving Benefit (CRCB).

Federal
  • For 2021 only, families that qualify for the CCB will receive four additional payments of $150 or $300, as the case may be, for each child under the age of six. Families with a net family income of $120,000 or less will receive the higher amount and others will receive the lower amount of $150.
  • Since 2021, access to the travel component of the deduction for residents of remote regions is expanded to allow eligible individuals to claim a maximum lump sum of $1,200 for eligible travel that would have otherwise given entitlement to a deduction below that amount.
Ontario
  • For 2021 only, the Ontario tax credit for access to daycare is increased by 20%.

Section 3 - Education
  • Since 2021, taxable post-doctoral fellowships are considered income that is eligible for RRSP contributions. It is possible to apply to the CRA to have the measure applied retroactively for the years 2011 to 2020.
  • In Ontario, for 2021 only, individuals can benefit from the Ontario training credit that makes it possible to recover up to 50% of training costs incurred in the year, up to a maximum of $2,000.

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Section 4 - Health, Seniors and Caregivers
  • For federal purposes, since 2021, the disability tax credit is expanded with respect to the mental functions necessary for everyday life and to therapy that is eligible for the credit.
  • In Quebec, the tax credit for home-support services for seniors will be enhanced as of 2022.
  • In Ontario, for 2021 only, a senior or a taxpayer who lives with a senior family member can benefit from a refundable tax credit to a maximum of $2,500 for eligible expenses to make their primary residence safer or more accessible.

Section 5 - Employees

Temporary measures related to COVID-19

 

  • For 2020 and 2021 only, employees who use an automobile provided by same employer as in 2019 can determine if they used the vehicle primarily for business purposes on the basis of their use in 2019.
  • Temporary relief is provided with respect to Deferred Salary Leave Plans (sabbaticals), in particular, for the leave period and the maximum salary deferral period.

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Federal
  • Since 2021, the Canada Workers Benefit is enhanced and a new exemption up to $14,000 is available for couples with two eligible workers.
  • The preferential tax treatment with respect to stock options awarded since July 2021 by certain corporations (excluding, in particular, CCPCs) is subject to an annual vesting limit of $200,000 per employee.

Section 6 - Businesses

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Quebec
  • The tax credit for on-the-job training is enhanced with respect to eligible expenses incurred after March 25, 2021 and before May 1, 2022 to the extent that the training period started after March 25, 2021.
  • Since 2021, the tax credit for taxi owners is abolished and the tax credit for taxi drivers is reduced by 50%. This credit will be completely abolished as of 2022.
  • The income averaging measure for forest producers, that was to end on December 31, 2020, is extended to December 31, 2025 and wood sales after March 9, 2020 benefit from a 10-year income averaging period (7 years before that date).

Section 7 - Investments
  • Individuals who received or disposed of (sold, transferred, exchanged) virtual currency must report this in their tax returns.
  • In Quebec, the tax rate on ordinary (non eligible) dividends was reduced on January 2, 2021 and will be further reduced on January 1, 2022, which will increase the tax rate applicable to these dividends.
  • In Quebec, the tax credit rate for the acquisition of Capital régional et coopératif Desjardins shares was reduced from 35% to 30% for purchases after February 28, 2021 and the temporary tax credit for the conversion of shares was extended to February 2022.

Section 8 - Retirement Assistance Programs

Since 2021, taxable post-doctoral fellowships are considered income that is eligible for purposes of calculating the for RRSP contribution limits. It is possible to apply to the CRA to have the measure apply retroactively for the years 2011 to 2020.

Section 12 - Social Programs and Benefits
  • Beginning in July 2022, OAS benefits will be enhanced by 10% for seniors age 75 or older. In addition, a one-time payment of $500 was made in August 2021 to pensioners who will be age 75 or older in June 2022.
Ontario
  • In Ontario, the health insurance exemption threshold, which had temporarily been increased to $1M in 2020 will be maintained at this amount permanently.
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