Tax Update 2024
(RRSP, TFSA, FHSA and More)
Make Sure Your Sound Is Turned On!
In This Presentation You Will Learn These Secrets
Knowing these secrets will help you optimize your tax liability
The maximum contribution for RRSP in 2024 is $31,560
TFSA limit increased to $7,000 in 2024
The First Home Savings Account, introduced in 2023
Key Topics Discussed in this Presentation
Maximum RRSP contribution:
The maximum contribution for 2024 is $31,560; for 2023, it’s $30,780. The 2025 limit will be $32,490
TFSA limit:
In 2024, the annual limit is $7,000, for a total of $95,000 for someone who has never contributed.
The annual limit for 2023 was $6,500, for a total of $88,000 in room available in 2022 since 2009.
Maximum pensionable earnings:
For 2024, the maximum pensionable earnings amount is $68,500 (up from $66,600 in 2023).
The basic exemption amount remains $3,500 for 2023 and 2024.
CPP Contrilbution Limit:
The maximum contribution for 2024 is 5.95%. Base CPP would be to a max of $3,867.50 (up from $3,754.45 in 2023).
Maximum EI insurable earnings:
The maximum annual insurable earnings (federal) for 2024 is $63,200, up from $61,500 in 2023.
Lifetime capital gains exemption:
The lifetime capital gains exemption is $1,016,836 in 2024, up from $971,190 in 2023.
Prescribed Rate Loans:
The family loan rate until Dec. 31 is 5%. Starting in 2024 it will increase to 6%.
FHSA limit:
You can contribute up to $8,000 to your FHSA. Lifetime contribution limit stays at $40,000.
Reminder that FHSA deposits in the first 60 days of 2024 do not count as a tax deduction for 2023.
Medical expenses threshold:
For the 2024 tax year, the maximum is 3% of net income or $2,759, whichever is less. For 2023, the max is 3% or $2,635.
Basic personal amount:
The basic personal amount for 2024 is $15,705 for taxpayers with net income of $173,205 or less.
The basic personal amount for 2023 ranges from $13,521 to $15,000.
Age amount:
You can claim this amount if they were aged 65 or older on Dec. 31 of the taxation year.
The maximum amount they can claim in 2024 is $8,790, up from $8,396 in 2023.
OAS recovery threshold:
If your net world income exceeds $90,997 in 2024 or $86,912 in 2023, they may have to repay part of or the entire OAS pension.
Canada caregiver credit:
If you have a dependent under the age of 18 who’s physically or mentally impaired, you may be able to claim up to an additional $2,616 in 2024 and $2,499 in 2023. For infirm dependants 18 or older, the amount for 2024 is $8,375 and the 2023 amount is $7,999.
Disability amount:
This non-refundable credit is $9,872 in 2024 ($9,428 in 2023), with a supplement up to $5,758 for those under 18 ($5,500 in 2023) that is reduced if child care expenses are claimed.
Child disability benefit:
The child disability benefit is a tax-free benefit of up to $3,173 from Jul 2023 to June 2024 ($2,985 in 2022) for families who care for a child under 18 with a severe and prolonged impairment in physical or mental functions. Benefits start to reduce at a family NET income of $75,537.
Canada child benefit:
From July 2023 – June 2024, the maximum CCB benefit is $7,437 per child under six and up to $6,275 per child aged six through 17. In 2022, those amounts are $6,997 per child under six and up to $5,903 per child aged six through 17.
