Category: Personal Tax Tips

Canadian Income Tax Rates for 2023

Posted on by Terra Cameron

Excerpt from CRA Website

Federal tax rates for 2023

  • 15% on the portion of taxable income that is $53,359 or less, plus
  • 20.5% on the portion of taxable income over $53,359 up to $106,717, plus
  • 26% on the portion of taxable income over $106,717 up to $165,430, plus
  • 29% on the portion of taxable income over $165,430 up to $235,675, plus
  • 33% on the portion of taxable income over $235,675

Provincial and territorial tax rates for 2023

Taxes for all provinces and territories (except Quebec) are calculated the same way as federal tax.

Form 428 is used to calculate your provincial or territorial tax. Provincial or territorial non-refundable tax credits are also calculated on Form 428.

Provinces and territories Rates
Newfoundland and Labrador8.7% on the portion of your taxable income that is $41,457 or less, plus14.5% on the portion of your taxable income over $41,457 up to $82,913, plus15.8% on the portion of your taxable income over $82,913 up to $148,027, plus17.8% on the portion of your taxable income over $148,027 up to $207,239, plus19.8% on the portion of your taxable income over $207,239 up to $264,750, plus20.8% on the portion of your taxable income over $264,750 up to $529,500, plus21.3% on the portion of your taxable income over $529,500 up to $1,059,000, plus21.8% on the portion of your taxable income over $1,059,000
Prince Edward Island9.8% on the portion of your taxable income that is $31,984 or less, plus13.8% on the portion of your taxable income over $31,984 up to $63,969, plus16.7% on the portion of your taxable income over $63,969
Nova Scotia8.79% on the portion of your taxable income that is $29,590 or less, plus14.95% on the portion of your taxable income over $29,590 up to $59,180, plus16.67% on the portion of your taxable income over $59,180 up to $93,000, plus17.5% on the portion of your taxable income over $93,000 up to $150,000, plus21% on the portion of your taxable income over $150,000
New Brunswick9.4% on the portion of your taxable income that is $47,715 or less, plus14% on the portion of your taxable income over $47,715 up to $95,431, plus16% on the portion of your taxable income over $95,431 up to $176,756, plus19.5% on the portion of your taxable income over $176,756
QuebecGo to Income tax rates (Revenu Québec).
Ontario5.05% on the portion of your taxable income that is $49,231 or less, plus9.15% on the portion of your taxable income over $49,231 up to $98,463, plus11.16% on the portion of your taxable income over $98,463 up to $150,000, plus12.16% on the portion of your taxable income over $150,000 up to $220,000, plus13.16% on the portion of your taxable income over $220,000
Manitoba10.8% on the portion of your taxable income that is $36,842 or less, plus12.75% on the portion of your taxable income over $36,842 up to $79,625, plus17.4% on the portion of your taxable income over $79,625
Saskatchewan10.5% on the portion of your taxable income that is $49,720 or less, plus12.5% on the portion of your taxable income over $49,720 up to $142,058, plus14.5% on the portion of your taxable income over $142,058
Alberta10% on the portion of your taxable income that is $142,292 or less, plus12% on the portion of your taxable income over $142,292 up to $170,751, plus13% on the portion of your taxable income over $170,751 up to $227,668, plus14% on the portion of your taxable income over $227,668 up to $341,502, plus15% on the portion of your taxable income over $341,502 
British Columbia5.06% on the portion of your taxable income that is $45,654 or less, plus7.7% on the portion of your taxable income over $45,654 up to $91,310, plus10.5% on the portion of your taxable income over $91,310 up to $104,835, plus12.29% on the portion of your taxable income over $104,835 up to $127,299, plus14.7% on the portion of your taxable income over $127,299 up to $172,602, plus16.8% on the portion of your taxable income over $172,602 up to $240,716, plus20.5% on the portion of your taxable income over $240,716
Yukon6.4% on the portion of your taxable income that is $53,359 or less, plus9% on the portion of your taxable income over $53,359 up to $106,717, plus10.9% on the portion of your taxable income over $106,717 up to $165,430, plus12.8% on the portion of your taxable income over $165,430 up to $500,000, plus15% on the portion of your taxable income over $500,000
Northwest Territories5.9% on the portion of your taxable income that is $48,326 or less, plus8.6% on the portion of your taxable income over $48,326 up to $96,655, plus12.2% on the portion of your taxable income over $96,655 up to $157,139, plus14.05% on the portion of your taxable income over $157,139
Nunavut4% on the portion of your taxable income that is $50,877 or less, plus7% on the portion of your taxable income over $50,877 up to $101,754, plus9% on the portion of your taxable income over $101,754 up to $165,429, plus11.5% on the portion of your taxable income over $165,429

Want to Avoid Delays at Tax Time?

Posted on by Terra Cameron

Filing and payment deadline

Excerpt from CRA Website.

You will be able to file your income tax and benefit return for 2022 starting on February 20, 2023. The deadline for most Canadians to file their income tax and benefit return for 2022 is April 30, 2023. Filing your return before the deadline will allow you to avoid interruptions to any refund, benefit or credit payments you may be eligible for.

Since April 30, 2023, falls on a Sunday, your return will be considered filed on time if the Canada Revenue Agency (CRA) receives it, or it is postmarked, on or before May 1, 2023. If you owe money to the CRA, your payment will also be considered on time if the CRA receives it, or a Canadian financial institution processes it, on or before May 1, 2023.

You have until June 15, 2023, to file your return if you or your spouse or common-law partner are self-employed. However, if you owe money, your payment is due on April 30, 2023. Your payment will be considered on time if the CRA receives it, or a Canadian financial institution processes it, on or before May 1, 2023.

Conveniently access or update your information

We encourage you to register for My Account at My Account for Individuals before the rush of tax season. Once you are registered for My Account, you will be able to access your tax information and easily change your address, phone number or other personal information that the CRA has on file. 

You should also register for direct deposit and make sure that your information is up-to-date before you file your return. By registering for direct deposit, your money will be deposited directly into your account at a financial institution.

If you have already registered for My Account, we invite you to sign in before the tax-filing season begins. We have additional security measures in place to protect your personal information. These include multi-factor authentication and proactively revoking user IDs and passwords that we think may be compromised to prevent unauthorized activity on taxpayer accounts. My Account users also need to have an email address on file to help protect their online accounts from fraudulent activity. If you do not currently have an email address on file, you will need to provide one when you sign in. Signing in before tax-filing season will help you avoid any delays accessing My Account.

One Time Top-Up to the Canada Housing Benefit

Posted on by Terra Cameron

You may be eligible for the one-time top-up to the Canada Housing Benefit.

The one-time top-up to the Canada Housing Benefit aims to help low-income renters with the cost of renting. You may be eligible for a tax-free one-time payment of $500 if your income and the amount that you pay on rent qualify.

The Canada Revenue Agency (CRA) administers this one-time payment. To apply for this new federal one-time payment, you do not need to receive other housing benefits such as the Canada Housing Benefit, which is co-funded and delivered by the provinces and territories.

Applications are open until Friday, March 31, 2023.

To see if you’re eligible and/or apply please visit the CRA Website.

Changes to Home Office Expenses for Employees

Posted on by Terra Cameron

Excerpts taken from CRA Website

What the changes are

This page describes the recent changes to claiming work space in the home expenses.

If you have never made this claim before, you can skip to the first decision you have to make, Compare the claim methods, or you can review this page to understand these changes.

On this page

New temporary flat rate method

The new temporary flat rate method simplifies your claim for home office expenses. You are eligible to use this new method if you worked more than 50% of the time from home for a period of at least four consecutive weeks in 2020 due to the COVID-19 pandemic. You can claim $2 for each day you worked from home during that period plus any additional days you worked at home in 2020 due to the COVID-19 pandemic. The maximum you can claim using the new temporary flat rate method is $400 (200 working days) per individual.

Eligibility
Temporary flat rate method

Each individual working from home who meets the eligibility criteria can use the temporary flat rate method to calculate their deduction for home office expenses. This means multiple people working from the same home can each make a claim.

This method can only be used for the 2020 tax year.

New options to claim the actual amounts you paid

You can use the detailed method to claim the home office expenses you paid for the period that you worked from home.

Eligibility
Detailed method

You are eligible to claim a deduction for home office expenses for the period you worked from home, if you meet all of the criteria:

  • you worked from home in 2020 due to the COVID-19 pandemic or your employer required you to work from home
  • you worked more than 50% of the time from home for a period of at least four consecutive weeks in 2020
  • have a completed and signed Form T2200S or Form T2200 from your employerWhat are Form T2200S and Form T2200
  • the expenses are used directly in your work during the period

Changes to the process
Detailed method

To support you, the CRA:

  • created a simplified Form T2200S and Form T777S
  • created a calculator to help you claim the home office expense deduction that you are entitled to
  • will accept an electronic signature on the Form T2200S and Form T2200 to reduce the necessity for employees and employers to meet in person (applies to the 2020 tax year only)

How to determine the employment use of a work space
Detailed method

Whether you work at the dining table or in a spare bedroom, there are several factors to consider when calculating your employment use of the work space:

New eligible expenses

The CRA has expanded the list of eligible expenses that can be claimed as work-space-in-the-home expenses to include reasonable home internet access fees. A comprehensive list of eligible home office expenses has also been created.

Canadian Income Tax Rates for 2021

Posted on by Terra Cameron

Excerpt from CRA Website

Federal tax rates for 2021

  • 15% on the first $49,020 of taxable income, plus
  • 20.5% on the next $49,020 of taxable income (on the portion of taxable income over 49,020 up to $98,040), plus
  • 26% on the next $53,939 of taxable income (on the portion of taxable income over $98,040 up to $151,978), plus
  • 29% on the next $64,533 of taxable income (on the portion of taxable income over 151,978 up to $216,511), plus
  • 33% of taxable income over $216,511

Provincial and territorial tax rates for 2021

Tax for all provinces (except Quebec) and territories is calculated the same way as federal tax.

Form 428 is used to calculate this provincial or territorial tax. Provincial or territorial specific non-refundable tax credits are also calculated on Form 428.

Provinces and territoriesRates
Newfoundland and Labrador8.7% on the first $38,081 of taxable income, +
14.5% on the next $38,080, +
15.8% on the next $59,812, +
17.3% on the next $54,390, +
18.3% on the amount over $190,363
Prince Edward Island9.8% on the first $31,984 of taxable income, +
13.8% on the next $31,985, +
16.7% on the amount over $63,969
Nova Scotia8.79% on the first $29,590 of taxable income, +
14.95% on the next $29,590, +
16.67% on the next $33,820, +
17.5% on the next $57,000, +
21% on the amount over $150,000
New Brunswick9.68% on the first $43,835 of taxable income, +
14.82% on the next $43,836, +
16.52% on the next $54,863, +
17.84% on the next $19,849, +
20.3% on the amount over $162,383
QuebecGo to Income tax rates (Revenu
Québec Web site).
Ontario5.05% on the first $45,142 of taxable income, +
9.15% on the next $45,145, +
11.16% on the next $59,713, +
12.16% on the next $70,000, +
13.16% on the amount over $220,000
Manitoba10.8% on the first $33,723 of taxable income, +
12.75% on the next $39,162, +
17.4% on the amount over $72,885
Saskatchewan10.5% on the first $45,677 of taxable income, +
12.5% on the next $84,829, +
14.5% on the amount over $130,506
Alberta10% on the first $131,220 of taxable income, +
12% on the next $26,244, +
13% on the next $52,488, +
14% on the next $104,976, +
15% on the amount over $314,928
British Columbia5.06% on the first $42,184 of taxable income, +
7.7% on the next $42,185, +
10.5% on the next $12,497, +
12.29% on the next $20,757, +
14.7% on the next $41,860, +
16.8% on the next $62,937, +
20.5% on the amount over $222,420
Yukon6.4% on the first $49,020 of taxable income, +
9% on the next $49,020, +
10.9% on the next $53,938, +
12.8% on the next $348,022, +
15% on the amount over $500,000
Northwest Territories5.9% on the first $44,396 of taxable income, +
8.6% on the next $44,400, +
12.2% on the next $55,566, +
14.05% on the amount over $144,362
Nunavut4% on the first $46,740 of taxable income, +
7% on the next $46,740, +
9% on the next $58,498, +
11.5% on the amount over $151,978

Doing your 2020 Taxes

Posted on by Terra Cameron

Excerpt from CRA Website

For individuals

The due date for filing an income tax and benefit return and paying any related tax balance due is April 30, 2021.

Filing on time helps to avoid having any of your benefit and credit payments interrupted or stopped.

For self-employed individuals

If you are self-employed or have a spouse or common-law partner who is self-employed, you both have to file a return by June 15, 2021.

To avoid late-filing penalties, pay any amount you owe by April 30, 2021. After this date, the CRA charges interest on what you owe until your balance is paid.

For a deceased person

If you are filing a return for a deceased person, the due date depends on the date of death and if the person owned a business in 2020.

If you are the surviving spouse of a deceased person or common-law partner and you were living with the deceased, the due date for filing your return is the same as the due date for the deceased person’s return. However, if you have a balance owing, you must pay it on or before April 30, 2021.

Home Office Expenses for Employees

Posted on by Terra Cameron

As found on CRA Website

As an employee, you may be able to claim certain home office expenses (work-space-in-the-home expenses, office supplies, and certain phone expenses).

This deduction is claimed on your personal income tax return. Deductions reduce the amount of income you pay tax on, so they reduce your overall income tax liability.

See changes to this for the 2020 Taxation Year!

COVID-19 Benefits

Posted on by Terra Cameron

As found on CRA Website

T4A slips for 2020 tax year

The Canada Revenue Agency (CRA) is committed to putting people first and providing the income support that Canadians need during the COVID-19 pandemic.

You will get a T4A slip from the CRA, if you received any of the COVID-19 emergency or recovery benefits from the CRA before December 31, 2020:

  • Canada Emergency Response Benefit (CERB) with the CRA
  • Canada Emergency Student Benefit (CESB)
  • Canada Recovery Benefit (CRB)
  • Canada Recovery Caregiving Benefit (CRCB)
  • Canada Recovery Sickness Benefit (CRSB)

Quebec residents will get both a T4A and RL-1 slip.

The CRA will provide T4A slips starting in January 2021. You should receive your T4A slip before March 10, 2021.

The COVID-19 benefit payment amounts on your T4A slip are taxable and must be reported as income on line 13000 of your 2020 income tax and benefit return.

You did not receive a T4A slip

If you received COVID-19 benefit payments in 2020, you should receive your T4A slip before March 10, 2021. You may also get your T4A information from CRA My Account.

After March 10, 2021, if you still do not have your T4A slip information, contact the CRA.

Situations where you would not get a T4A slip:

  • If you applied for the CERB with Service Canada or any Employment Insurance (EI) benefit payments, you will receive a T4E slip.
  • If your employer received the Canada Emergency Wage Subsidy (CEWS) to cover part of your wages, the income you earned will appear on your regular T4 slip.

Issues with your T4A slip

Each COVID-19 benefit will have its own box number (Box 197 to 204) on your T4A slip. If you received more than one benefit with the CRA in 2020, check that each amount you received or repaid is correct.

To confirm the COVID-19 benefit amounts you received, you can review “COVID-19 Support Payment Application Details” in CRA My Account.

Call the CRA right away if:

  • Your T4A slip shows incorrect amounts
  • You repaid benefit amounts before December 31, 2020, but the repayments are not reflected
  • Your T4A slip shows incorrect personal information
  • You did not apply for a COVID-19 benefit, but received a T4A slip

Telephone number: 1-800-959-8281

How to report T4A amounts on your tax return

You will need to enter all COVID-19 benefit amounts you received (Box 197 to 204) from your T4A slip and provide the total amount on line 13000 – Other income of your 2020 income tax and benefit return.

If you received a CRB, CRCB or CRSB, the CRA withheld a 10% tax at source on each payment. In addition to reporting the amounts on line 13000, you need to report the income tax deducted.

You can find the income tax deducted at source in Box 022 of your T4A slip. Enter this amount on line 43700 – Total income tax deducted on your 2020 income tax and benefit return.

When to expect your refund

Posted on by Terra Cameron

Excerpt from CRA Website

You can claim a refund if your net tax (line 109 of your GST/HST return) for a reporting period is a negative amount.

Generally, the CRA process a GST/HST return in:

  • 2 weeks if you filed electronically
  • 4 weeks if you filed a paper return

If you did not include all the necessary information but completed your return correctly, the processing of your refund could be delayed.

The CRA will hold any GST/HST refund or rebate you are entitled to until we receive all outstanding returns and amounts. This includes all amounts payable and returns required under other programs administered by the CRA. We can also use any GST/HST refund or rebate that you are entitled to receive to pay that outstanding amount.

You may receive your refund deposited directly into your bank account. To enroll for direct deposit, use My Business Account or fill out Form RC366, Direct Deposit Request for Businesses.

The CRA

The CRA pay refund interest according to the prescribed interest rate. Refund interest is compounded daily on an overpayment up to and including the day the overpayment is refunded, repaid, or applied. The calculation of interest we pay ends on the day the refund is paid or applied.

For more information, see GST/HST – Penalties and interest.