2023 Essential Tax Numbers for Planners

  • TAX FACTS & FIGURES
  • SOCIAL SECURITY PROGRAMS
  • DOLLAR LIMITS FOR REGISTERED PLANS
  • CPP
  • OAS
  • ALDA
TAX FACTS & FIGURES

Tax Facts and Figures

Description 2023
Indexation factor 6.3%
Federal tax bracket thresholds
Taxable income at which 20.5% bracket begins 53,359
Taxable income at which 26% bracket begins 106,717
Taxable income at which 29% bracket begins 165,430
Taxable income at which 33% bracket begins 235,675
Amounts for non-refundable tax credits
Basic personal amounts
For income greater than or equal to the 33% tax bracket 13,521
For income less than or equal to the 29% tax bracket 15,000
Age amount 8,396
Canada caregiver amount for children under age 18 2,499
Disability amount 9,428
Supplement for children with disabilities (max) 5,500
Medical expense tax credit (3% of net income ceiling) 2,635
Lifetime capital gains exemption
Exemption limit for qualified small business corporation shares 971,190
Deduction limit (½ of capital gain) 485,595
TFSA Limit 6,500
Accumulated TFSA Limit since 2009 88,000
Low-interest loans 3%
 

Transfer of Tax Credits

  • Table 1 includes the transferable unused portion of a number of tax credits
  • All of these credits are transferable to a taxpayer’s spouse
  • Allows the transfer of credits that could not be used by the transferring spouse
Tax Credit Transferrable to
Age credit Spouse or common-law partner
Pension income credit Spouse or common-law partner
Disability credit Spouse, common-law partner or supporting parent or grandparent
Tuition credits with a max amount of $5,000 Spouse, common-law partner or supporting parent or grandparent
SOCIAL SECURITY PROGRAMS

Social Security Programs

  • Two major federal social security programs are:
    • The Canada Child Benefit (CCB);
    • The GST/HST credit
  • GST Credit
    • Paid on a benefit-year cycle beginning in July
    • Adjustments take effect as of July 1st
Benefit Year 2022/2023
Adult max 467
  • Canada Child Benefit
    • Paid on a benefit-year cycle beginning in July – payments for these periods will be based on adjusted family net income for the previous taxation year
    • Families receive a single payment every month
    • Families will not have to pay back part of the amount received when they file their tax returns
  2023/2022
Max per child under 6 7,437
Max per child aged 6 through 17 6,275
  • Disability Benefit
    • Provides additional amount per child eligible for the disability tax credit
    • Payments will be included with the Canada Child Benefit payment
  2022
Maximum benefit 3,173
DOLLAR LIMITS FOR REGISTERED PLANS

Dollar Limits For Registered Plans

Year Defined-Benefit Limit RRSP Dollar Limit
2023 3,507 30,780
CPP

Canada Pension Plan (CPP)

  Monthly Annual
Contributions for 2023
YMPE 66,600
Basic earnings exemption 3,500
Contribution rate for employee 5.95%
Max employee contribution 3,754.45
Max employee and employer contribution 7,508.90
OAS

Old Age Security (OAS)

Monthly Annualized Income Level Cut-off
Max benefits 65 to 74 (As of October 2022) 685.50 8,226 129,757
Max benefits 75 and over 754.05 9,048.60 129,757
OAS clawback threshold 86,912
ALDA

Advanced Life Deferred Annuities (ALDA)

2023
Lifetime dollar limit 160,000