Essential tax numbers: updated for 2024

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.

Working clients

• Maximum RRSP contribution: The maximum contribution for 2024 is $31,560; for 2023, it’s $30,780. The 2025 limit is $32,490.
• TFSA limit: In 2024, the annual limit is $7,000, for a total of $95,000 for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009. The annual limit for 2023 is $6,500, for a total of $88,000 in room available in 2023 for someone who has been eligible since 2009.
• Maximum pensionable earnings: For 2024, the maximum pensionable earnings amount is $68,500 (up from $66,600 in 2023), and the basic exemption amount remains $3,500. New for 2024, earnings between $68,500 and $73,200 will subject to a second tranche of CPP contributions.
• Maximum EI insurable earnings: The maximum annual insurable earnings (federal) for 2024 is $63,200, up from $61,500 in 2023.
• Prescribed rates: The prescribed rate on loans to family members will be 6% in Q1 2024, and the interest rate Canadians must pay on overdue tax will be 10%. That’s up from 5% and 9%, respectively, in Q4 2023.
• Lifetime capital gains exemption: The lifetime capital gains exemption is $1,016,836 in 2024, up from $971,190 in 2023.
• Home buyers’ amount: A client who bought a home may be able to claim up to $10,000 of the purchase cost, and get a non-refundable tax credit of up to $1,500.
• Medical expenses threshold: For the 2024 tax year, the maximum is 3% of net income or $2,759, whichever is less. For 2023, the max is 3% or $2,635.
• Basic personal amount: The basic personal amount for 2024 is $15,705 for taxpayers with net income of $173,205 or less. At income levels above $173,205, the basic personal amount is gradually clawed back until it reaches $14,156 for net income of $246,752. The basic personal amount for 2023 ranges from $13,520 to $15,000.

Older clients

• 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 2024 is $8,790, up from $8,396 in 2023.
• OAS recovery threshold: If your client’s net world income exceeds $90,997 in 2024 or $86,912 in 2023, they may have to repay part of or the entire OAS pension.
• Lifetime ALDA dollar limit: The limit is $170,000 for 2024 and $160,000 for 2023.

Clients with children and other dependants

• Canada caregiver credit: A client with a dependant younger than 18 who’s physically or mentally impaired may be able to claim up to an additional $2,616 in 2024 and $2,499 in 2023 in calculating certain non-refundable tax credits. For infirm dependants 18 or older, the amount for 2024 is $8,375 and the 2023 amount is $7,999.
• Disability amount: This non-refundable credit is $9,872 in 2024 ($9,428 in 2023), with a supplement up to $5,758 for those under 18 ($5,500 in 2023) that is reduced if child care expenses are claimed.
• Child disability benefit: The child disability benefit is a tax-free benefit of up to $3,322 in 2024 ($3,173 in 2023) for families who care for a child under 18 with a severe and prolonged impairment in physical or mental functions.
• Canada child benefit: In 2024, the maximum CCB benefit is $7,787 per child under six and up to $6,570 per child aged six through 17. In 2023, those amounts are $7,437 per child under six and up to $6,275 per child aged six through 17.

Federal tax brackets

Federal bracket thresholds will be adjusted higher in 2024 by 4.7%.

• The 33.0% tax rate begins at taxable income of over $246,752, up from $235,675 in 2023.
• The 29.0% tax rate begins at taxable income of over $173,205 up from $165,430 in 2023.
• The 26.0% tax rate begins at taxable income of over $111,733 up from $106,717 in 2023.
• The 20.5% tax rate begins at taxable income of over $55,867, up from $53,359 in 2023.
• Income up to $55,867 is taxed at 15.0%.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.