7 Tax Changes in Canada That Could Impact You in 2024

By Sophie

Explore the latest developments in Canadian tax policies as we delve into seven potential changes set to take effect in 2024

1. New Federal Tax Brackets: Inflation prompts adjustments to tax brackets for 2023, leading to lower taxes on higher portions of income. Brackets range from 15% to 33%.

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2.  New Alternative Minimum Tax Rate: Proposed increase from 15% to 20.5% in AMT rate with a $173,000 exemption starting January 1, 2024, to ensure minimum tax payment. 2. 

3. Change in Home Office Deductions: The flat-rate method for home office deductions ends after 2022. Detailed method now required, necessitating more documentation for deductions.

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4. EI Premium Rate Hike: Effective January 2, 2024, employment insurance premium rates increase, affecting both workers and employers, criticized by CFIB for its impact on business and workers. 2. 

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5. Basic Personal Amount Increase: BPA increases to $15,705 for 2024, offering tax exemption for incomes at or below this amount. Higher earners receive reduced benefits.

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6.  RRSP Dollar Limit Increase: RRSP contribution limit raised to $30,780 for 2023, subject to 18% of individual income cap to avoid penalties.

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7. TFSA Dollar Limit Increase: TFSA contribution limit upped to $7,000 for 2024, with potential contributions from age 18 onwards, but over-contributions incur penalties.

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CRA BenefitS 2024

GST Payment Dates 2024