If your New Year’s resolution is to save money, begin with budget planning by focusing on your net income. The rise in income tax brackets, TFSA and RRSP limits may help to some extent despite high inflation.
Personal income tax and benefit values are adjusted to reflect inflationary trends. For 2024, the federal tax brackets have been revised with an indexing rate of 4.7%.
Prince Edward Island has implemented a revised tax structure for the current year. Similarly, Manitoba has updated its tax bracket income thresholds for 2024. The majority of other provinces also routinely modify their tax bracket income levels in accordance with inflation.
Another major change is to CPP, as the final changes to CPP enhancement take effect this year, creating additional mandatory CPP contributions to those earning above the Year’s Maximum Pensionable Earnings.
Contents:
- Tax Brackets – Federal & Provincial
- TFSA & RRSP
- Employment Insurance & CPP contributions
- Old Age Security, Goods and Services Tax credit
- Canada Child benefit, Child Disability Benefit
Here are all the major changes taking place in 2024:
1. Tax Brackets – Federal & Provincial
2024 Federal Tax Bracket thresholds
| Tax Rate | 2023 | 2024 |
|---|---|---|
| 15% bracket | up to $53,359 | up to $55,867.01 |
| 20.5% bracket | $53,359 — $106,717 | $55,867.01 — $111,733 |
| 26% bracket | $106,717 — $165,430 | $111,733 — $173,205 |
| 29% bracket | $165,430 — $235,675 | $173,205 — $246,752 |
| 33% bracket | over $235,675 | over $246,752 |
Basic personal amount: The basic personal amount before any personal tax applies has been increased to $15,705 for those earning $173,205 (29% tax bracket), up from $15,000 for those earning $165,430 (29% tax bracket) in 2023. Those in the 33% will have a basic personal amount of $14,156. Those in the 29% tax bracket will get an adjusted basic personal amount according to the formula: $15,705 – (Income – $173,205) × ($1,549 / $73,547).
Increased basic personal amounts and indexing rates mean you will receive a higher salary in 2024 or owe less tax when you file your 2024 taxes in 2025.
2024 B.C. Tax Brackets
The BC tax brackets and personal tax credit amounts are increased for 2024 by 5%. The basic personal amount for 2024 is $12,580, up from $11,981 in 2023.
| Tax Rate | 2023 | 2024 |
|---|---|---|
| 5.06% | up to $45,654 | up to $47,937 |
| 7.70% | $45,654 — $91,310 | $47,937 — $95,875 |
| 10.50% | $91,310 — $104,835 | $95,875 — $110,076 |
| 12.29% | $104,835 — $127,299 | $110,076 — $133,664 |
| 14.70% | $127,299 — $172,602 | $133,664 — $181,232 |
| 16.80% | $172,602 — $240,716 | $181,232 — $252,752 |
| 20.50% | over $240,716 | over $252,752 |
2024 Alberta Tax Brackets
Alberta’s basic personal amount will increase to $21,885, and tax bracket thresholds have been increased by 4.2 per cent for 2024.
| Tax Rate | 2023 | 2024 |
|---|---|---|
| 10% | up to 142,292 | up to $148,269 |
| 12% | 142,292 — 170,751 | $148,269 — $177,922 |
| 13% | 170,751 — $227,668 | $177,922 — $237,230 |
| 14% | $227,668 — $341,502 | $237,230 — $355,845 |
| 15% | over $341,502 | over $355,845 |
2024 Saskatchewan Tax Brackets
The Saskatchewan tax brackets are increased by 4.7 % for 2024. The basic personal amount for 2024 is $18,491, up from $17,661 in 2023.
As per the news release, a family of four with an annual income of $75,000 will save $322 in 2024.
| Tax Rate | 2023 | 2024 |
|---|---|---|
| 10.5% | up to $49,720 | up to $52,057 |
| 12.5% | $49,720 — $142,058 | $52,057 — $148,734 |
| 14.5% | over $142,058 | over $148,734 |
2024 Manitoba Tax Brackets
The Manitoba introduced new tax brackets for 2024. The basic personal amount for 2024 is $15,780, up from $10,855 in 2023.
| Tax Rate | 2023 | 2024 |
|---|---|---|
| 10.8% | up to $36,842 | up to $47,000 |
| 12.75% | $36,842.01 — $79,625 | $47,000 — $100,000 |
| 17.4% | over $79,625 | over $100,000 |
2024 Ontario Tax Brackets
Ontario tax bracket thresholds, except for the top two tiers, have been increased by 4.5 per cent for 2024. The basic personal amount is $12,399 in 2024, up from $11,865 in 2023.
| Tax Rate | 2023 | 2024 |
|---|---|---|
| 5.05% | up to $49,231 | up to $51,446 |
| 9.15% | $49,231 — $98,463 | $51,446 — $102,894 |
| 11.16% | $98,463 — $150,000 | $102,894 — $150,000 |
| 12.16% | $150,000 — $220,000 | $150,000 — $220,000 |
| 13.16% | over $220,000 | over $220,000 |
2024 Quebec Tax Brackets
Quebec tax bracket thresholds have been increased by 5.08 per cent for 2024. The basic personal amount is $18,056 in 2024, up from $17,183 in 2023.
| Tax Rate | 2023 | 2024 |
|---|---|---|
| 14% | up to $49,275 | up to $51,780 |
| 19% | $49,275 — $98,540 | $51,780 — $103,545 |
| 24% | $98,540 — $119,910 | $103,545 — $126,000 |
| 25.75% | over $119,910 | over $126,000 |
2024 New Brunswick Tax Brackets
New Brunswick tax bracket thresholds have been increased by 4.7 per cent for 2024.
The basic personal amount is $13,044 in 2024, up from $12,458 in 2023.
| Tax Rate | 2023 | 2024 |
|---|---|---|
| 9.4% | up to $47,715 | up to $49,958 |
| 14.0% | $47,715 — $95,431 | $49,958 — $99,916 |
| 16.0% | $95,431 — $176,756 | $99,916 — $185,064 |
| 19.5% | over $176,756 | over $185,064 |
2024 Nova Scotia Tax Brackets
There is no change in tax brackets for 2024.
The basic personal amount is $11,481 when income is less than $25,000. When income is more than $75,000, the amount is $8,481. For those earning between $25,000 and $75,000, the amount is $11,481 – [(income – $25,000) × 6%].
| Tax Rate | 2023 | 2024 |
|---|---|---|
| 8.79% | up to $29,590 | up to $29,590 |
| 14.95% | $29,590 — $59,180 | $29,590 — $59,180 |
| 16.67% | $59,180 — $93,000 | $59,180 — $93,000 |
| 17.50% | $93,000 — $150,000 | $93,000 — $150,000 |
| 21.00% | over $150,000 | over $150,000 |
2024 Prince Edward Island Tax Brackets
PEI has changed the provincial taxation structure, and three tax brackets and surtax will be replaced by a five-bracket income tax system starting this year.
The basic personal amount is $13,500 in 2024, up from $12,750 in 2023.
| 2023 Tax Rate | 2023 | 2024 Tax Rate | 2024 |
|---|---|---|---|
| 9.8% | up to $31,984 | 9.65% | up to $32,656 |
| 13.8% | $31,984 — $63,969 | 13.63% | $32,656 — $64,313 |
| 16.7% | over $63,969 | 16.65% | $64,313 — $105,000 |
| .. | .. | 18% | $105,000 — $140,000 |
| .. | .. | 18.75% | over $140,000 |
2024 Newfoundland & Labrador Tax Brackets
The NL tax brackets are increased by 4.2% for 2024.
The basic personal amount is $10,818 in 2024, up from $10,382 in 2023.
| Tax Rate | 2023 | 2024 |
|---|---|---|
| 8.7% | up to 142,292 | up to $43,198 |
| 14.5% | $41,457 — $82,913 | $43,198 — $86,395 |
| 15.8% | $82,913 — $148,027 | $86,395 — $154,244 |
| 17.8% | $148,027 — $207,239 | $154,244 — $215,943 |
| 19.8% | $207,239 — $264,750 | $215,943 — $275,870 |
| 20.8% | $264,750 to $529,500 | $275,870 — $551,739 |
| 21.3% | $529,500 — $1,059,000 | $551,739 –$1,103,478 |
| 21.8% | over $1,059,000 | over $1,103,478 |
2024 Yukon Tax Brackets
Except for the top tier, the Yukon tax brackets are increased by 4.7% for 2024.
The basic personal amount calculation is the same as the federal basic personal amount.
| Tax Rate | 2023 | 2024 |
|---|---|---|
| 6.40% | Up to $53,359 | Up to $55,867 |
| 9% | $53,359 — $106,717 | $55,867 — $111,733 |
| 10.90% | $106,717 — $165,430 | $111,733 — $173,205 |
| 12.80% | $165,430 — $500,000 | $173,205 — $500,000 |
| 15.00% | over $500,000 | over $500,000 |
2024 Northwest Territories Tax Brackets
Northwest Territories tax brackets are increased by 4.7% for 2024.
The basic personal amount is $17,373 in 2024, up from $16,593 in 2023.
| Tax Rate | 2023 | 2024 |
|---|---|---|
| 5.90% | up to $48,326 | up to $50,597 |
| 8.60% | $48,326 — $96,655 | 0ver $50,597 — $101,198 |
| 12.20% | $96,655 — $157,139 | 0ver $101,198 — $164,525 |
| 14.05% | over $157,139 | over $164,525 |
2024 Nunavut Tax Brackets
Nunavut tax brackets will be increased by 4.7% for 2024.
The basic personal amount is $18,767 in 2024, up from $17,925 in 2023.
| Tax Rate | 2023 | 2024 |
|---|---|---|
| 4.0% | up to $50,877 | up to $53,268 |
| 7.0% | $50,877 — $101,754 | $53,268 — $106,537 |
| 9.0% | $101,754 — $165,429 | $106,537 — $173,205 |
| 11.5% | over $165,429 | over $173,205 |
II. TFSA & RRSP
The 2024 TFSA contribution limit will be increased to $7,000 from $6,500. This means that the total TFSA limit will be $95,000 for a Canadian resident who has never contributed to the tax-free fund since 2009.
The registered retirement savings plan has been increased to $31,560, up from $30,780 in 2023.
III. Employment Insurance & CPP contributions
The final phase of the Canada Pension Plan (CPP) enhancement begins in 2024, aiming to increase retirement pensions by 50% for future retirees. This change elevates the income replacement level from 25% to 33% by 2064, impacting survivor and disability pensions too. Key changes include a new ceiling, the Year’s Additional Maximum Pensionable Earnings (YAMPE), allowing extra contributions on earnings above the standard limit. Both employees and employers will contribute more, enhancing future pensions and offering tax deductions.
The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2024 will be $68,500 — up from $66,600 in 2023. The basic exemption amount for 2024 remains at $3,500.
The new second earnings ceiling of $73,200 is introduced for calculating second additional CPP contributions (CPP2), affecting earnings between $68,500 and $73,200. Contribution rates for employees and employers stay at 5.95%, with maximum contributions rising to $3,867.50 each.
For self-employed individuals, the rate remains at 11.90%, with a maximum contribution of $7,735.00. CPP2 contributions are set at 4% for employees and employers (maximum $188.00 each) and 8.00% for self-employed individuals (maximum $376.00). Contributions will not be required beyond $73,200 in earnings.
Similar changes are in effect for Quebec Pension Plan with maximum pensionable earnings at $68,500 at a contribution rate of 6.4%. The maximum contributions by employees and employers will be $4,160. The second additional QPP contribution rate is the same as CPP.
The maximum insurable earnings will increase from $61,500 to $63,200. The employee EI premium rate will be $1.66 per $100 starting January 1, 2024. The premium rate for Quebec workers will be $1.32 in 2023.
Credit: CRA/Canada.ca/taxes
More Information:
See Rates and amounts on the CRA website for reference for federal and provincial tax brackets mentioned above.
Use CRA’s Payroll Deductions Online Calculator, to get a basic idea about your take-home income starting in 2024.
To calculate any pending 2024 taxes or refunds owed based on your 2023 salary, you can use any Canadian tax calculator online.
IV. Old Age Security
The January to June 2024 payments are calculated using 2022 limits. If you are an OAS recipient, your OAS payments will be reduced by a recovery tax of 15% if your income increases above $81,761.
From July 2024 to June 2025, the 2023 income will be used, and the limit will increase to $86,912.
The old age security (OAS) repayment using 2024 income takes effect for payments from July 2025 to June 2026 and is for net world income from $90,997 to $148,065 for individuals aged 65 to 74. For those aged 75 and over, the upper threshold is $153,771.
V. Goods and Services Tax credit, Canada Child benefit, Child Disability Benefit
Goods and services tax credit, the Canada child benefit and Child disability benefit will change effective July 1st of 2024 based on 2023 income, which is the beginning of the program year for payments of these income-based benefits.
The government has not yet announced the new rates for payments effective July 1st, 2024.
On January 5 and April 5, 2024, you could get up to $496 if you are single, $650 if you are married or have a common-law partner, and $171 for each child under the age of 19 as Goods and Services Tax credit.
For the payment period until June 2024, the Canada Child benefit provides a tax-free maximum of $7,437 per year ($619.75 per month) per child under the age of six, and $6,275 per year ($522.91 per month) per child aged six through 17 if the net family income is below $34,863. Until June 2024, you could get up to $3,173 ($264.41 per month) for each child who is eligible for the disability tax credit as Child Disability Benefit.