2024 Federal and Provincial Income Tax Rates Announced

New Tax Brackets and Rates for Individuals and Businesses

The Canada Revenue Agency (CRA) has released the federal indexation factors, tax brackets, and tax rates for 2024. These changes will affect the amount of income tax that individuals and businesses owe on their 2023 income.

Key Changes for 2024

The most significant change for 2024 is the increase in the basic personal amount (BPA). The BPA is the amount of income that individuals can earn before paying taxes. For 2024, the BPA will increase from $15,000 to $15,339.

In addition to the increase in the BPA, the tax brackets have also been adjusted for inflation. As a result, individuals will pay less tax on their first $50,197 of income in 2024.

Businesses will also benefit from some tax changes in 2024. The small business tax rate will be reduced from 10% to 9%. Additionally, the capital gains exemption for qualified small businesses will increase from $800,000 to $850,000.

Individual Income Tax Rates

The following table shows the federal income tax rates for individuals in 2024:

| Taxable Income | Federal Tax Rate | |---|---| | $0 - $50,197 | 15% | | $50,198 - $100,392 | 20.5% | | $100,393 - $155,625 | 26% | | $155,626 - $221,708 | 29% | | Over $221,708 | 33% |

Provincial and Territorial Income Tax Rates

In addition to the federal income tax, individuals also pay provincial or territorial income tax. The rates for each province and territory can vary significantly.

The following table shows the provincial and territorial income tax rates for 2024:

| Province/Territory | Marginal Tax Rate | |---|---| | Alberta | 10% | | British Columbia | 7.7% | | Manitoba | 10.8% | | New Brunswick | 10.3% | | Newfoundland and Labrador | 10.5% | | Northwest Territories | 8.5% | | Nova Scotia | 8.0% | | Nunavut | 4% | | Ontario | 9.15% | | Prince Edward Island | 9.5% | | Quebec | 15% | | Saskatchewan | 11.0% | | Yukon | 5.5% |