A Deep Dive into 2024 Income Tax Brackets: If one of your New Year’s resolutions is to save money, start by making a budget based on your net income. Even though inflation is high, the higher income tax rates and TFSA and RRSP caps may help in some ways.
The amounts of personal income tax and benefits are changed to keep up with inflation. The federal tax brackets have been changed for 2024, and the rate of inflation has been raised to 4.7%.
For this year, Prince Edward Island has changed the way taxes are calculated. In the same way, Manitoba has changed the salary limits for its tax brackets for 2024. Most other provinces also change their income amounts for tax brackets on a regular basis to keep up with inflation.
Another big change is to the CPP. This year, the final changes to the CPP increase go into effect, which means that people who make more than the Year’s Maximum Pensionable Earnings will have to make extra CPP payments.
These are the most important changes that will happen in 2024:
Basic personal amount: The basic personal amount that doesn’t get taxed has gone up from $15,000 to $15,705 for people making $173,205 (29% tax bracket). This is up from $15,000 for people making $165,430 (29% tax bracket) in 2023. The core amount for those in the 33 percent will be $14,156. If you are in the 29% tax rate, you will get a reduced basic personal amount of $15,705 – (Income – $173,205) × ($1,549 / $73,547).
Because basic personal amounts and increasing rates have gone up, you will either make more money or owe less tax in 2024 when you file your taxes in 2025.
Tax Rates for 2024 B.C.
For 2024, the BC tax rates and amounts of the personal tax credits are going up by 5%. That amount has gone up from $11,981 in 2023 to $12,580 in 2024.
| 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 Tax Rates in Alberta
The basic personal amount in Alberta will go up to $21,885, and the tax group levels have gone up by 4.2% 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 Tax Rates in Saskatchewan
For 2024, the tax rates in Saskatchewan will go up by 4.7%. This amount has gone up from $17,661 in 2023 to $18,491 for 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 Tax Rates in Manitoba
For 2024, the Manitoba government changed the tax rates. This amount has gone up from $10,855 in 2023 to $15,780 in 2024.
| 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 Tax Rates in Ontario
From the bottom two to the top two tax brackets, Ontario’s tax rates have gone up by 4.5% for 2024. This amount goes up from $11,865 in 2023 to $12,399 in 2024.
| 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 Tax Rates in Quebec
The lower tax rates in Quebec have gone up by 5.08 percent for 2024. The base amount for individuals goes up from $17,183 in 2023 to $18,056 in 2024.
| 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 Tax Rates in New Brunswick
For 2024, the tax rate limits in New Brunswick have gone up by 4.7%.
The base amount for individuals goes up from $12,458 in 2023 to $13,044 in 2024.
| 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 Tax Rates in Nova Scotia
The tax rates will not change in 2024.
People with less than $25,000 in income get the basic amount, which is $11,481. If you make more than $75,000 a year, the number is $8,481. The amount for people making between $25,000 and $75,000 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 Tax Rates for Prince Edward Island
PEI has changed how the province taxes its residents. Instead of three tax brackets and a surtax, there will now be five tax bands for income starting this year.
The base amount for individuals goes up from $12,750 in 2023 to $13,500 in 2024.
| 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 Tax Rates for Newfoundland and Labrador
In NL, the tax rates are going up by 4.2% in 2024.
In 2024, the basic amount is $10,818. In 2023, it was $10,382.
| 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 Tax Rates for Yukon
The tax rates in Yukon have all gone up by 4.7% for 2024, except for the top one.
How to figure out the basic personal amount is the same as how to figure out the government 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 Tax Rates for the Northwest Territories
For 2024, the tax rates in the Northwest Territories will go up by 4.7%.
This amount goes up from $16,593 in 2023 to $17,373 in 2024.
| 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 Tax Rates for Nunavut
In 2024, the tax rates in Nunavut will go up by 4.7%.
This amount goes up from $17,925 in 2023 to $18,767 in 2024.
| 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 most you can put into a TFSA in 2024 will go up from $6,500 to $7,000. This means that a Canadian citizen who has lived in Canada since 2009 and has never put money into a tax-free TFSA will be able to save a total of $95,000.
It is now $31,560 in the qualified retirement savings plan, up from $30,780 in 2023.
III. Paying into Employment Insurance and the CPP
The last part of the Canada Pension Plan (CPP) improvement project starts in 2024, and its goal is to raise incomes for future workers by 50%. By 2064, this change will raise the amount of income replacement from 25% to 33%. This will have an effect on both survivor and disability payments. One of the most important changes is a new cap called the Year’s Additional Maximum Pensionable Earnings (YAMPE), which lets people who make more than the regular limit contribute more. More money will be put in by both workers and companies, which will improve future pensions and allow tax breaks.
The most you can earn and still be eligible for the Canada Pension Plan (CPP) will be $68,500 in 2024, up from $66,600 in 2023. In 2024, the basic deduction amount will stay at $3,500.
For figuring out second extra CPP contributions (CPP2), a new earnings cap of $73,200 has been added. This affects earnings between $68,500 and $73,200. Contribution rates for both workers and companies stay at 5.95%, and the most each person can put in goes up to $3,867.50.
The rate for people who are self-employed stays at 11.90%, and the most they can contribute is $7,735.00. Contributions to CPP2 are 4% for employees and companies (up to $188.00 each), and 8% for self-employed people (up to $376.00). Contributions will not be needed if you earn more than $73,200.
Similar changes have been made to the Quebec Pension Plan. At a payment rate of 6.4%, the most that can be saved for retirement is $68,500. The most that workers and companies can put in will be $4,160. The second extra rate for QPP contributions is the same as the CPP rate.
The highest amount of money that can be insured will go up from $61,500 to $63,200. From January 1, 2024, the rate for employee EI premiums will be $1.66 per $100. In 2023, the amount for workers in Quebec will be $1.32.
