In this article:
Overview
Tax season is upon us and if you’re like us, you want to know all of the tax changes before sitting down to prepare your tax return.
You can find a great summary of all rates and amounts changed on CRA’s website. We don’t go into detail about all amounts that increased due to inflation because these generally change every year.
- Alternative minimum tax (AMT): Changes allow individuals to claim 80% of allowable donations for the charitable donation tax credit, a full deduction for guaranteed income supplement, social assistance, and workers' compensation payments, and the full federal logging tax credit.
- Canada child benefit (CCB): Starting in 2025, CCB eligibility will be extended for six months after a child's death if the claimant is otherwise eligible.
- CPP and QPP enhancement: A second contribution limit was introduced on January 1, 2024, subjecting workers' earnings to two limits.
- Capital gains: Inclusion rates will remain at 50%. The proposed rate increase from 1/2 to 2/3 on capital gains over $250,000 has been deferred to January 1, 2026.
- Capital gains deduction for qualifying business transfer: Individuals can claim a deduction of up to $10 million on capital gains from qualifying business transfers.
- Disability support deduction: The list of eligible expenses has been expanded, including expenses for service animals.
- Home Buyers' Plan: The withdrawal limit has increased to $60,000 for withdrawals made after April 16, 2024.
- Short-term rentals: Tax deductions for expenses related to non-compliant short-term rentals will be denied.
- Volunteer firefighters and search and rescue volunteers amount: The amount has increased from $3,000 to $6,000 for eligible individuals.
Provincial and territorial tax changes
Depending on your province or territory of residence, there may also be other tax changes that you should know about. If you don’t live in one of the provinces or territories below, there aren’t any big tax changes on your provincial forms.
Alberta
- The Alberta investor tax credit can no longer be carried forward.
- Charitable donations credit: The first $200 in donations now receives a 60% credit, significantly increasing the tax savings for smaller donations.
British Columbia
- Training tax credit for individuals: This credit has been extended until December 31, 2025. If you're eligible, you can continue to claim this credit for qualifying educational programs.
- Shipbuilding and ship repair industry tax credit: This industry-specific credit has been extended until December 31, 2026, supporting continued investment in this sector.
- Mining exploration tax credit: As of February 23, 2024, oil and gas exploration expenditures no longer qualify for this credit. This change may affect those in the resource exploration industry.
- BC Family Benefit Bonus: From July 2024 to June 2025, eligible families will receive this bonus with their monthly BC Family Benefit payment, providing additional support for families.
Manitoba
- Fertility treatment tax credit: The maximum annual amount of eligible expenses has changed, potentially benefiting those undergoing fertility treatments.
New Brunswick
- New tax credit: A non-refundable tax credit for volunteer firefighters and search and rescue volunteers was introduced, effective January 1, 2024.
Nova Scotia
- Innovation equity tax credit: Extended until March 1, 2029, supporting investment in innovative businesses.
- Venture capital tax credit: Extended until March 30, 2029, encouraging investment in local ventures.
Prince Edward Island
- Tax bracket changes: Two additional income brackets have been introduced, and the 10% surtax has been eliminated.
- Basic personal amount, spouse/common-law partner amount, eligible dependant amount, and age amount have all changed.
- Children's wellness tax credit: Increased from $500 to $1,000.
- New Prince Edward Island child benefit (PEICB) introduced.
Québec
- Capital gains: Changes aligned with federal updates for inclusion rates, staying at 50%.
- QPP changes: New RR-50 form for stopping QPP contributions, applicable for ages 65-73
- For a list of all changes in Québec, visit their website.
Saskatchewan
- Dividend tax credit: The rate for non-eligible dividends has changed.
Yukon
- Carbon price rebate: The remote supplement has increased from 10% to 20%.
- Mining business rebate: The placer mining adjustment factor has changed from 4 to 2 for tax years ending after March 31, 2024.
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