You have a lot to remember as an advisor, so we’ve assembled this reference list of tax numbers. We’ll update it as things change.
- Maximum RRSP contribution: The maximum contribution for 2023 is $30,780; for 2022, it’s $29,210. The 2024 limit is $31,560.
- TFSA limit: In 2023, the annual limit is $6,500, for a total of $88,000 for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009. The annual limit for 2022 is $6,000, for a total of $81,500 in room available in 2022 for someone who has been eligible since 2009.
- Maximum pensionable earnings: For 2023, the maximum pensionable earnings amount is $66,600 (up from $64,900 in 2022), and the basic exemption amount remains $3,500 for 2022 and 2023.
- Maximum EI insurable earnings: The maximum annual insurable earnings (federal) for 2023 is $61,500, up from $60,300 in 2022.
- Lifetime capital gains exemption: The lifetime capital gains exemption is $971,190 in 2023, up from $913,630 in 2022.
- Low-interest loans: The family loan rate until Dec. 31 is 3%.
- Home buyers’ amount: Did your client buy a home? They may be able to claim up to $5,000 of the purchase cost, and get a non-refundable tax credit of up to $750. (Legislation is pending that would double the amount to $10,000 for a non-refundable tax credit of up to $1,500.)
- Medical expenses threshold: For the 2023 tax year, the maximum is 3% of net income or $2,635, whichever is less. For 2022, the max is 3% or $2,479.
- Basic personal amount: The basic personal amount for 2023 is $15,000 for taxpayers with net income of $165,430 or less. At income levels above $165,430, the basic personal amount is gradually clawed back until it reaches $13,521 for net income of $235,675. The basic personal amount for 2022 ranges from $12,719 to $14,398.
- Age amount: Clients can claim this amount if they were aged 65 or older on Dec. 31 of the taxation year. The maximum amount they can claim in 2023 is $8,396, up from $7,898 in 2022.
- OAS recovery threshold: If your client’s net world income exceeds $86,912 in 2023 or $81,761 in 2022, they may have to repay part of or the entire OAS pension.
- Lifetime ALDA dollar limit: The limit is $160,000 for both 2023 and 2022.
Clients with children, dependants
- Canada caregiver credit: If you have a dependant under the age of 18 who’s physically or mentally impaired, you may be able to claim up to an additional $2,499 in 2023 and $2,350 in 2022 in calculating certain non-refundable tax credits. For infirm dependants 18 or older, the amount for 2023 is $7,999 and the 2022 amount is $7,525.
- Disability amount: This non-refundable credit is $9,428 in 2023 ($8,870 in 2022), with a supplement up to $5,500 for those under 18 ($5,174 in 2022) that is reduced if child care expenses are claimed.
- Child disability benefit: The child disability benefit is a tax-free benefit of up to $3,173 in 2023 ($2,985 in 2022) for families who care for a child under 18 with a severe and prolonged impairment in physical or mental functions.
- Canada child benefit: In 2023, the maximum CCB benefit is $7,437 per child under six and up to $6,275 per child aged six through 17. In 2022, those amounts are $6,997 per child under six and up to $5,903 per child aged six through 17.
Federal tax brackets
Federal bracket thresholds will be adjusted higher in 2023 by 6.3%.
- The 33.0% tax rate begins at taxable income of over $235,675, up from $221,708 in 2022.
- The 29.0% tax rate begins at taxable income of over $165,430, up from $155,625 in 2022.
- The 26.0% tax rate begins at taxable income of over $106,717 up from $100,392 in 2022.
- The 20.5% tax rate begins at taxable income of over $53,359, up from $50,197 in 2022.
- Income up to $53,359 is taxed at 15.0%.