Tax numbers for 2024 are in and inflation has pushed them substantially higher
Inflation is still running high, so most of the important tax figures have been substantially increased for 2024. Here are the new tax numbers you need to know.
Inflation adjustment factor: Each year, most income tax and benefit amounts are indexed to inflation. The Canada Revenue Agency in November announced the inflation rate to be used to index the 2024 tax brackets and amounts would be 4.7 per cent.
Increases to the tax bracket thresholds and various amounts relating to non-refundable credits take effect on Jan. 1, 2024. But increases in amounts for certain benefits, such as the GST/HST credit and Canada Child Benefit, only take effect on July 1, 2024, coinciding with the beginning of the program year for these benefit payments, which are income tested and based on your net income reported on your 2023 tax return.
Tax brackets for 2024: All five federal income tax brackets for 2024 have been indexed to inflation using the 4.7 per cent rate. The new brackets are: zero to $55,867 of income (15 per cent); above $55,867 to $111,733 (20.5 per cent); above $111,733 to $173,205 (26 per cent); above $173,205 to $246,752 (29 per cent); and anything above that is taxed at 33 per cent.
Each province also has its own set of provincial tax brackets, most of which have been indexed to inflation, but using their respective provincial indexation factors.
Basic personal amount: The BPA is the amount of income an individual can earn without paying any federal tax. In December 2019, the government announced an increase of the BPA annually until it reached $15,000 in 2023, after which it will be indexed to inflation.
As a result, the increased BPA for 2024 is now $15,705, meaning you can earn up to this amount in 2024 before paying any
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