On June 21, 2023, Bill no. 14 - An Act to Amend the Income Tax Act received royal assent. The following changes to personal tax credits, as well as other amounts, are law but have various coming-into-force dates:
Basic personal amount – The basic personal amount for 2023 will increase to $12,750 from the currently enacted $12,000, effective January 1, 2023. The basic personal amount for 2024 will be $13,500.
The CRA has confirmed that the increase in the BPA will be reflected in the November release of the payroll guides T4127/T4032/T4008, effective January 1, 2024.
TD1PE is not republished in 2023 with the revised BPA amount for 2023. Payroll providers, employers, and employees should use the values provided in the guides/forms that are currently available.
The CRA will administer these changes during the tax-filing season.
Spouse or common-law partner amount and the amount for an eligible dependent – The amount for these credits for 2023 will increase from the currently enacted $10,192 to $10,829, and the amount for 2024 will be $11,466 for 2024.
Age amount – The budget increases the amount for this credit, available to persons aged 65 and older, from $3,764 to $4,679 for 2023 and to $5,595 for 2024. The budget also increases the income threshold from $28,019 to $30,879 for 2023 and to $33,740 for 2024.
2024 tax brackets and thresholds – Beginning in 2024, the current three brackets and personal income tax rates, plus the surtax, will be replaced with a five-bracket system with higher bracket thresholds and lower rates in the current brackets, as outlined in the table below.
The minister also committed to reviewing these brackets and rates on an annual basis.
| First bracket rate | Second bracket rate | Third bracket rate | Fourth bracket rate | Fifth bracket rate | |||
| 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2024 | 2024 |
| $0 to $31,984 | $0 to $32,656 | $31,985 to $63,969 | $32,657 to $64,313 | Above $63,969 | $64,314 to $105,000 | $105,001 to $140,000 | Above $140,000 |
| 9.80% | 9.65% | 13.80% | 13.63% | 16.70% | 16.65% | 18.00% | 18.75% |