The CRA has updated its website with the 2023 indexation adjustments. Given rising inflation, the indexation factor has increased to 6.3% for 2023 (2022 – 2.4%). The indexation factor impacts various personal income tax and benefit amounts including tax bracket thresholds, amounts relating to non-refundable credits and certain income-tested benefits.
We have highlighted some of the changes below. A full listing is available on the CRA website.
Federal Tax Bracket Thresholds
- 20.5% bracket begins at taxable income above $53,359
- 26% bracket begins at taxable income above $106,717
- 29% bracket begins at taxable income above $165,430
- 33% bracket begins at taxable income above $235,675
Other Notable Items
- Annual TFSA dollar limit – $6,500 (2022 – $6,000)
- Lifetime capital gains exemption on qualified small business corporation shares – $971,190 (2022 – $913,630)
- Basic personal amount – $15,000 (2022 – $14,398) for individuals in the 20.5% or 26% bracket
- Age amount – $8,396 (2022 – $7,898) for individuals with net income below $42,335
- Disability amount – $9,428 (2022 – $8,870)
- OAS repayment threshold – $86,912 (2022 – $81,761)
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.
