The Canada Revenue Agency recently revealed the inflation rate or indexation factor (4.7%) that will be used to determine key personal income tax and benefit numbers for 2024.
With inflation remaining high in 2023, we are seeing noticeable increases in some of the amounts and limits.
Here are the updated RRSP, TFSA, CCB, CPP amounts and other numbers to get you started for your savings, retirement, and tax return filing efforts in 2024.
2024 TFSA Contribution Limit
The TFSA numbers kept steady at $6,000 for four years between 2019 and 2022. This lack of change was due to how the TFSA limit is calculated – i.e. annually indexed to inflation and rounded off to the nearest $500.
The TFSA contribution limit increased to $6,500 in 2023, and for 2024, it has increased to $7,000. If you’ve never contributed to the TFSA and have been eligible since 2009, your total contribution room increases to $95,000.
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2024 RRSP Limit
The maximum RRSP contribution allowable in 2024 is the lower of $31,560 or 18% of your earned income in 2023. If you have any workplace pension, this amount may be further reduced by a pension adjustment.
The limit was a maximum of $30,780 for 2023.
Related:
- Save on Taxes by Maximizing your RRSP Contribution
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2024 Canada Child Benefits
For the July 2023 to June 2024 payment period, the maximum CCB for children under 6 increases to $7,437, and it is $6,275 for those between 6 and 17.
The total amount you will receive will depend on the number of children and your family’s net income. A phase-out of benefits starts when your family’s net income exceeds $34,863.
Child Disability Amount: The child disability benefit for a child under 18 in 2024 is $3,173.
Related:
- How to Increase Your Canada Child Benefits
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- How To Invest Your RESP
2024 Age Amount
The maximum age amount that can be claimed for 2024 is $8,790. Your net income has to be $44,325 or less to claim the full age amount deduction.
2024 Federal Tax Brackets
Federal tax brackets for 2024 are as follows:
- Up to $55,867: 15%
- $55,868 to $111,733: 20.50%
- $111,734 to $173,205: 26%
- $173,206 to $246,752: 29%
- $246,753 and over: 33%
Related:
2024 Basic Personal Amount
The basic personal amount for 2024 is $15,705 if your income is $173,205 or less.
The increase in the basic personal amount is phased out gradually until it reaches $14,156 for incomes of $246,752 and over.
2024 Employment Insurance (EI) Rate and Maximum
The maximum annual insurable earning for 2024 is $63,200 ($61,500 for 2023), with EI premiums payable at a rate of 1.66%.
This means that the maximum annual employee premium for 2024 is $1,049.12. The maximum annual employer premium is $1,468.77 for 2024.
Related: How To Apply For EI and EI Sickness Benefits.
2024 CPP Contribution and Payout Amounts
CPP contributions are paid by you and your employer every year on income earned up to a certain amount, referred to as the Maximum Contributory Earnings (MCE).
The maximum contributory earnings for the year are calculated by deducting the basic exemption amount ($3,500) from the maximum pensionable amount ($68,500) for the year.
For 2024, the MCE is $65,000, up from $63,100 in 2023. Therefore, the maximum employee contribution to CPP for 2024 is $3,867.50 (at a 5.95% contribution rate).
The maximum CPP contribution in 2024 for self-employed individuals is $7,735.
The maximum monthly CPP paid out to seniors in 2024 is $1,364.60. However, the average monthly pension is lower for new beneficiaries at $758.32.
Related:
- Guide To Retirement Income in Canada
- What Happens To CPP When You Are Abroad?
- CPP Payment Dates
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2024 OAS Maximum and Clawback
For the first quarter of 2024 (January to March), the maximum monthly OAS benefit at 65 years is $713.34, and $784.67 for those aged 75 and over.
OAS clawback starts when your net income is $81,761, and you will receive no OAS if your income exceeds $142,609 (age 65 to 74) or $148,179 (age 75 and over). The OAS amount is adjusted for inflation every three months.
Also indexed to inflation are the GIS and Allowance. For the January to March period of 2024, the following amounts apply:
- Maximum GIS amount for a single individual: $1,065.47
- Maximum GIS amount to a senior who has a spouse also receiving OAS: $641.35
- Maximum monthly Allowance benefit: $1,354.69
- Maximum monthly Allowance for the Survivor benefit: $1,614.89
Related:
- Guaranteed Income Supplement Explained
- OAS Survivor Benefits
- OAS Amounts and Payment Dates
- CPP vs OAS Benefits
- How Much Will CPP and OAS Increase in 2024?
