Finance has provided updated figures for the 2024 calendar year related to employment income, automobile expenses, and contribution limits for registered accounts. This includes the introduction of second additional CPP contributions (CPP2), effective January 1, 2024 for individuals earning employment income above the maximum annual pensionable earnings amount.
EI premium rates and maximum
2024 maximum annual insurable earnings increased to $63,200 from $61,500 and the rate increased to 1.66% from 1.63%. The maximum annual employee and employer premiums are $1,049.12 and $1,468.77, respectively.
CPP and CPP2 contribution rates, maximums, and exemptions
2024 maximum annual pensionable earnings increased to $68,500 from $66,600. The basic exemption amount and employee and employer contribution rates remain unchanged at $3,500 and 5.95%, respectively.
Beginning January 1, 2024 employers must deduct second additional CPP contributions (CPP2) on earnings above the annual maximum pensionable earnings highlighted above. The additional maximum annual pensionable earnings are $73,200 at a rate of 4%, to a maximum contribution of $188 for employees and employers.
Automobile deduction limits and expense benefit rates for business
The below figures are pretax limits related to vehicles, leases, and loans acquired on or after January 1, 2024.
The maximum addition allowable for capital cost allowances (CCA) of Class 10.1 passenger vehicles will increase to $37,000 from $36,000.
The leasing costs deduction limit has been increased to $1,050 from $950 per month.
The maximum allowable interest deduction for new automobile loans has been increased to $350 from $300 per month.
Automobile allowance rates for 2024 are as follows:
- 70 cents per km for the first 5,000 km driven
- 64 cents per km thereafter
For the territories, there is an additional 4 cents per km allowed for travel.
TFSA and FHSA
The Tax-Free Savings Account (TFSA) contribution limit has been increased to $7,000 from $6,500.
First Home Savings Account (FHSA) limit remains at $8,000 per year up to a maximum lifetime contribution of $40,000.
Immediate expensing
This temporary measure introduced by Finance no longer exists for assets purchased and made available on or after January 1, 2024.
The information in this article is of a general nature and is in summary form. Contact one of our tax professionals to discuss these matters in the context of your situation before acting upon such information.
