Taxes in Canada 2024
Federal Income Tax Brackets for 2024
The federal income tax brackets for 2024 have been adjusted for inflation. Here are the new brackets:
- Up to $53,359: 15%
- $53,359 to $106,716: 20.5%
- $106,717 to $165,430: 26%
- $165,431 to $235,675: 29%
- Over $235,675: 33%
New Tax Measures
- Basic Personal Amount: The basic personal amount has increased, allowing individuals to earn more before paying federal income tax. For 2024, this amount is $15,705.
- Home Office Expense Deduction: The temporary flat rate method for claiming home office expenses, introduced during the pandemic, does not apply for 2023. Eligible employees must use the detailed method and obtain a completed Form T2200 from their employer for 2023 expenses (Canada.ca).
- First Home Savings Account (FHSA): Contributions to an FHSA are deductible, and qualifying withdrawals to buy or build a home are tax-free. This account is aimed at helping first-time homebuyers save for their purchase (Canada.ca).
- Multigenerational Home Renovation Tax Credit: This refundable tax credit allows eligible individuals to claim up to $50,000 in qualifying expenditures to create a secondary unit for seniors or adults with disabilities. The maximum credit available is $7,500 (Canada.ca).
Change to Business Taxes
- Employee Ownership Trusts (EOTs): EOTs have been introduced to facilitate the transfer of business ownership to employees. This change is aimed at helping business owners, particularly those from the baby boomer generation, to sell their businesses to employees with favorable tax conditions (TurboTax).
- Share Buyback Tax: Publicly traded Canadian companies that repurchase shares will face a 2% tax on the value of repurchased equities. This measure aims to curb excessive share buybacks and encourage investment (TurboTax).
Alternative Minimum Tax (AMT)
The AMT has seen significant changes, including an increase in the basic exemption amount from $40,000 to $173,205 and a rise in the minimum tax rate from 15% to 20%. These changes ensure that high-net-worth individuals pay a minimum level of tax despite other deductions or credits (TurboTax).
Important Tax Deadlines
- April 30, 2024: This is the deadline for most Canadians to file their tax returns for the 2023 tax year. Self-employed individuals have until June 15, 2024 (Canada.ca).
For more detailed information and resources to help you navigate the tax filing season, you can visit:
