Updates

As of 2024, the CRA plans on trying a new automated production service to help vulnerable people receive the benefits to which they are entitled.

• Since 2023, the personal income tax rate has been reduced from 15% to 14% for the first income bracket and from 20% to 19% for the second income bracket.
• Since 2023, the rate of non-refundable tax credits has been reduced from 15% to 14%. This reduction has been offset by an increase in the amounts granted to maintain the value of the following credits:
  • Amount for a minor child in vocational training or post-secondary education;
  • Amount for other dependants;
  • Amounts used to calculate the transfer of the recognized parental contribution;
• Since 2023, the fixed rate of witholding tax applicable to lump-sum paymenbts is reduced by 1%

Since 2023, the personal income tax rate has been reduced from 14.82% to 14% for the first income bracket, from 16.52% and 17.84% to 16% for the second and third income brackets, and from 20.3% to 19.5% for the final income bracket.

• Since 2023, subject to certain exceptions, the profit on the disposal of a principal residence that the taxpayer owned for less than 12 months is fully taxable and does not qualify for the principal residence exemption.
• In 2023, the FHSA was implemented to help individuals save for the purchase of their first home.
• The GST credit was doubled for the period from January to June 2023, and those eligible for the credit in January 2023 received a maximum additional one-time payment of $234 for single person or single parents, $306 for married or common-law partners and $81 per dependent child.
• Between December 12, 2022 and March 31, 2023, low-income tenants could apply for a top-up to the Canada Housing Allowance. This one-time payment of $500 is not taxable.
• The CRA now publishes an official table of air fares for claiming the travel deduction for residents of remote regions.

• Since July 1, 2023, the housing component of the solidarity tax credit has been increased from $638 to $677 for a single person, from $774 to $821 for a couple without children and a single-parent family, and from $1,046 to $1,109 for a couple with two children.
• Since 2023, recipients of the Basic Income Program receiving the monthly adjustment for a single person are, under certain conditions, automatically entitled to the amount for a person living alone.

• Since March 28, 2023, the maximum RESP withdrawal has increased from $5,000 to $8,000 for the first session of 13 consecutive weeks of full-time studies and from $2,500 to $4,000 for a part-time study session.

• Since 2023, a new refundable tax credit of up to $7,500 is available for expenses incurred to create a multigenerational dwelling for a person 65 years of age or older or an adult who is eligible for the Disability Tax Credit.
• The temporary measure allowing a parent or spouse to hold an RDSP for an adult beneficiary has been extended until December 31, 2026. Additionally, this measure has been extended since June 22, 2023 to allow a brother or sister to hold such an RDSP.

• The senior assistance tax credit is enhanced, retroactive to 2022.
• The tax credit for seniors’ activities is eliminated for expenses incurred after 2022.

• For vehicle purchases and leases that took place after 2022, the prescribed capital cost for automobile expenses is increased from $34,000 to $36,000 (from $59,000 to $61,000 for an eligible zero-emission vehicle) and the monthly leasing cost ceiling is increased from $900 to $950.

• Since 2023, the deduction for the purchase of new tools for tradespeople has been increased from $500 to $1,000.
• Since July 2023, individuals eligible for the Canada Workers Benefit receive automatic quarterly advance payments.

• Since 2023, tax credits for volunteer firefighters and search and rescue volunteers have been enhanced.

• In Quebec, the Act mainly to improve the transparency of enterprises came into force on March 31, 2023. Under this Act, additional information must be disclosed to the Registraire des entreprise du Québec.

• Since 2023, the profit on the sale of a residential building (including a rental building) held for less than 12 months is deemed to be business income and is fully taxable (rather than at 50% as a capital gain).
• The flow-through share system is eliminated for agreements entered into after March 31, 2023, with respect to oil, gas or coal activities.
• As of 2024, the AMT calculation will be reviewed, with the aim of targeting high-income individuals. The rate will be increased and the base of income covered by this tax will be broadened. At the same time, the basic exemption of $40,000 will be increased to an amount equivalent to the lower threshold of the fourth federal tax bracket (estimated at $173,000 for 2024).

• As of 2024, the credit for the purchase of FSFTQ and Fondaction shares will no longer be available to individuals whose income was taxable at the highest rate in the personal income tax table in the second preceding year (i.e., 2022 income for the purposes of eligibility for the 2024 credit). Additionally, the minimum holding period for such shares will gradually increase for shares issued from June 2024 to June 2026.

• Since October 1, 2022, eligible families earning less than $90,000 per year can receive the Interim Canadian Dental Benefit for dental care for a child under age 12.

• As of 2024, the maximum age for claiming a QPP pension will be raised from 70 to 72. At the same time, workers will stop contributing to the QPP as of January 1 of the year in which they reach age 73, and as of age 65, they will be able to choose to stop contributing if they are already a QPP or CPP annuitant.

• Guaranteed Annual Income Plan benefits for seniors in Ontario are temporarily doubled for 2023.

• Since July 1, 2023, New Brunswick residents have been receiving the Climate Action Incentive payment.
• Monthly premiums for the New Brunswick Drug Plan have been increased, effective November 1, 2022.