Tax season is here again, and if you're wondering what’s new for your 2024 Canadian personal tax return, you’re in the right place. From higher tax brackets and capital gains changes to updates on the Home Buyers’ Plan and Alternative Minimum Tax, there are a few key things to keep in mind this year. But don’t worry—I’ve got you covered with a quick rundown of what’s changing so you can file with confidence (and maybe even save some money). Let’s dive in!
Capital Gains Inclusion Rate: Effective June 24, 2024, the capital gains inclusion rate has increased to two-thirds. However, for capital gains of $250,000 or less, a new reduction ensures the effective inclusion rate remains at one-half. Additionally, the lifetime capital gains exemption has been raised for dispositions occurring after this date. However, with the prorogation of government and the fact that the actual amendment to the Income Tax Act bringing the rule into effect has not yet passed, many wondered if these changes would apply to your 2024 tax return.
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Home Buyers' Plan (HBP): The withdrawal limit for the HBP has been increased from $35,000 to $60,000 for withdrawals made after April 16, 2024. Furthermore, temporary repayment relief allows participants who made their first withdrawal between January 1, 2022, and December 31, 2025, to defer the start of the 15-year repayment period by an additional three years.
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Tax Brackets and Basic Personal Amount: For 2024, the federal tax brackets have been adjusted for inflation with an indexation rate of 4.7%. The basic personal amount (BPA), which is the income you can earn tax-free, has also been adjusted:
Filing Deadlines: The general tax filing deadline is April 30, 2024. For self-employed individuals and their spouses or common-law partners, the deadline is June 17, 2024, since June 15 falls on a Saturday. However, any balance owing is still due by April 30 to avoid interest charges.
Paper Tax Return Instructions: Starting in 2024, the Canada Revenue Agency (CRA) will no longer include line-by-line instructions in the paper tax return package. This change was made based on feedback indicating that most individuals rely on prior year returns and the "What's New" section rather than detailed instructions.
Keeping up with these updates will make filing your 2024 Canadian personal tax return easier and stress-free, helping you stay on track and maybe even save some money along the way!
Download here your 2024 Personal Tax Checklist to start collecting your documents and let us know when you are ready! ☕
Capital Gains Inclusion Rate: Effective June 24, 2024, the capital gains inclusion rate has increased to two-thirds. However, for capital gains of $250,000 or less, a new reduction ensures the effective inclusion rate remains at one-half. Additionally, the lifetime capital gains exemption has been raised for dispositions occurring after this date. However, with the prorogation of government and the fact that the actual amendment to the Income Tax Act bringing the rule into effect has not yet passed, many wondered if these changes would apply to your 2024 tax return.
canada.ca
Home Buyers' Plan (HBP): The withdrawal limit for the HBP has been increased from $35,000 to $60,000 for withdrawals made after April 16, 2024. Furthermore, temporary repayment relief allows participants who made their first withdrawal between January 1, 2022, and December 31, 2025, to defer the start of the 15-year repayment period by an additional three years.
canada.ca
Tax Brackets and Basic Personal Amount: For 2024, the federal tax brackets have been adjusted for inflation with an indexation rate of 4.7%. The basic personal amount (BPA), which is the income you can earn tax-free, has also been adjusted:
- Tax Brackets:
- 15% on taxable income up to $55,867
- 20.5% on income over $55,867 up to $111,733
- 26% on income over $111,733 up to $173,205
- 29% on income over $173,205 up to $246,752
- 33% on income over $246,752
- Basic Personal Amount:
- $15,705 for individuals earning $173,205 or less
- $14,156 for those earning $246,752 or more
- For incomes between these amounts, the BPA is adjusted gradually.
Filing Deadlines: The general tax filing deadline is April 30, 2024. For self-employed individuals and their spouses or common-law partners, the deadline is June 17, 2024, since June 15 falls on a Saturday. However, any balance owing is still due by April 30 to avoid interest charges.
Paper Tax Return Instructions: Starting in 2024, the Canada Revenue Agency (CRA) will no longer include line-by-line instructions in the paper tax return package. This change was made based on feedback indicating that most individuals rely on prior year returns and the "What's New" section rather than detailed instructions.
Keeping up with these updates will make filing your 2024 Canadian personal tax return easier and stress-free, helping you stay on track and maybe even save some money along the way!
Download here your 2024 Personal Tax Checklist to start collecting your documents and let us know when you are ready! ☕
