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What's New by Month
May 2023
2018-2023 Basic Canadian Income Tax Calculator
Great for tax practitioners and financial planners, super-quick calculator displays taxes/marginal tax rates for every province/territory, allows comparisons between 2 versions.
2022/2023 Investment Income Tax Calculator
Based on the detailed calculator, displays the big difference in taxes payable on different types of investment income. See how you can save tax using Cdn dividends!
2022/2023 Detailed Canadian Tax & RRSP Savings Calculator
Time to start 2023 tax planning! The calculator has been updated for the PEI 2023 budget changes.
Prince Edward Island 2023 Budget - May 25, 2023
Personal, spousal and age amounts increased for 2023 and 2024, new tax brackets for 2024 with revised tax rates, 10% surtax eliminated for 2024 and later years, low income tax reduction threshold increased for 2023 and 2024.
Registered Disability Savings Plans (RDSPs)
Their purpose is to ensure financial security for a child or adult with a disability, when parents are no longer able to provide support. An RDSP can also be set up by an adult eligible for the disability tax credit themselves, to help ensure their future financial security.
Is it better to increase your monthly mortgage payment, or contribute the extra amount to an RRSP? Our calculator may help with this, but unless your RRSP returns are going to be consistently higher than the rate on your debt, it is better to pay down your debt.
Provincial Political Contribution Tax Credit
The only change for 2023 is Ontario, which is indexed for inflation. The tax credit is refundable in Ontario and Nunavut.
Borrowing to Invest - NOT for Novice Investors
In most cases, the interest on the debt is only tax deductible as long as you own the investments. The interest rate, the dividend yield and your marginal tax rate will all be considerations for your decision on whether to use this strategy. Use our calculator to help with your decision.
Your Principal Residence Sale May Not Be Tax Free
The principal residence exemption depends on your intent when you purchased the property, how long you've owned the property, and the size of the property. A US citizen selling their home in Canada will most likely be subject to US tax on any gain.
US Federal Estate Tax Calculator For Canadians
Whether or not US estate tax is payable will depend on the person's total worldwide estate as well as their U.S.-situated assets. This calculator is for a Canadian who is not a US citizen.
A U.S. federal estate tax return must be filed if a deceased Canadian resident who is not an American citizen owned U.S.-situated assets exceeding $60,000 US in fair market value at the time of death.
This one-time additional GST/HST credit will be delivered to eligible Canadians on July 5, 2023. Bill C-46 included the legislation for the payment, and received Royal Assent on May 11, 2023. The payment is based on 2021 tax returns.
Can CRA Withhold My Tax Refund and Benefits or Garnish My Wages?
Yes, they can. If you can't pay all your tax on time, pay as much as you can on a regular basis. Interest will continue to be charged.
April 2023
Topics in this month's 10-minute video for Canadian Tax and Financial Professionals:
 | Shrinkflation - GST/HST Issues |
| Mandatory Disclosure Rules |
| Intergenerational Business Transfers |
| Underused Housing Tax (UHT) - Various Issues |
| Alternative Minimum Tax (AMT) - Budget 2023 |
What If I Can't Afford to Pay the Tax I Owe?
File your tax return on time even if you can't afford to pay the balance owing, to avoid penalties! Then contact Canada Revenue Agency as soon as possible to discuss your options.
2023 Corporate Income Tax Rates
General, small business (CCPC), and CCPC investment income tax rates for 2023 have not changed from 2022 thus far except for the SK small business rate increase to 1% for July 1, 2023.
Canada's Underused Housing Tax (UHT) - Do You Have to File a Return?
This is complicated. Are you a Canadian who co-owns property in/on which you reside as well as operate a farm or other business? Do you co-own rental property and file your T776 or T2125 as a partnership? Does your Cdn corporation own property on which there is a "housing unit"? Are you Trustee of a Trust owning a "housing unit"? Not all accountants are familiar enough with the UHT to determine if individuals or organizations are required to file, even though they may not owe tax.
With minimum penalties of $5,000 per individual per property and $10,000 per non-individual per property, don't rely on someone else's opinion that you don't need to file, unless they indicate in writing that they'll pay the penalty if they're incorrect.
April 2023 Climate Action Incentive Payments Delayed For Many
Taxpayers whose 2022 personal income tax returns were not assessed on or before March 24th did not receive their April 14, 2023 climate action incentive payments. Those eligible will receive their April payments in July.
Filing Your Personal Income Tax Return
Make sure you didn't miss any deductions or tax credits! Check your results with our calculator. Know your due dates, check the status of your tax return, dealing with CRA.
Ontario Municipal Vacant Homes Taxes - Buyers Beware!
Toronto, Ottawa and Hamilton have vacant home taxes, and one is probably coming soon to Peel. Buyers of new homes may find themselves on the hook for unfiled declarations or unpaid taxes from before they purchased their new home.
Rental Property Expenses and Issues
Learn about deductible expenses, renting below FMV, rental losses, change in use of your home, capital vs expense, motor vehicle expenses, foreign rental property, and more.
Tax Treatment of Income From Investments in Mutual Funds
Mutual fund distributions can be made up of eligible dividends, capital gains, reinvested distributions, return of capital, other income, foreign income, foreign tax withheld, and management fee rebates. These affect your income tax differently, and may affect your adjusted cost base (ACB).
Figuring out how to claim attendant care costs can be complicated, as they can be claimed as medical expenses, sometimes as disability supports deductions. The $10,000 limit for attendant care as medical expenses is per paying individual, not per patient, which makes cost sharing among supporting persons advantageous. There are 2 options when claiming attendant care costs as medical expenses for a person who qualifies for the disability amount.
Federal and Provincial Home Renovation Tax Credits
Renos done to your home in 2022? Check to see if you're eligible for a tax credit. BC, NB & ON credits are refundable. SK credit available to all SK homeowners.
March 2023
CRA Dedicated Telephone Service (DTS) for Income Tax Service Providers
The DTS provides free technical help from experienced CRA officers for small and medium income tax service providers.
Life in the Tax Lane April 2023
Topics in this month's 10-minute video for Canadian Tax and Financial Professionals:
| Relationship Status - Common Law or Not? |
| Underused Housing Tax - Updates |
| TFSA - Carrying on a Business |
| Employment Expenses - Sponsorship |
| Legislation vs. CRA Interpretation - re CERB and re Medical Expenses |
| US FBAR Penalties - $10,000 Per Form or Account? |
This very simple calculator for 2023 and earlier years displays taxes and marginal tax rates for all provinces & territories, and allows you to easily compare 2 different scenarios. Helpful for everyone, including tax pros and financial planners.
2022/23 Detailed Canadian Tax and RRSP Savings Calculator
For all provinces & territories except Quebec, updated with 2023 provincial budget changes. Now includes ON Seniors Care at Home Refundable Tax Credit for 2022 and 2023. Good for checking against your tax software!
2022/23 Detailed Quebec Tax and RRSP Savings Calculator
Updated with 2023 Quebec budget changes. Good for checking against your tax software!
Federal 2023 Budget - March 28, 2023
No plans to balance the budget in the next 5 years; Several personal tax measures; Many #business tax measures; See our summary info with links to the detailed info in the budget.
Federal Underused Housing Tax (UHT) - This Affects Canadians Also
Our article now has more information on interpreting the UHT and filing the form. CRA has announced penalties and interest will be waived if returns filed/tax paid by Oct 31, 2023.
BC Refundable Home Reno Tax Credit
For seniors, and persons with disabilities or family they live with, up to $1,000 refund for eligible expenditures to enable access, improve mobility, or reduce the risk of harm.
Ontario 2023 Budget - March 23, 2023
No personal or corporate income tax changes; New 10% Ontario Made Manufacturing Investment Tax Credit; Gas and fuel tax cuts extended; GAINS program to be expanded, indexed for inflation; and a few other changes.
Nova Scotia 2023 Budget - March 23, 2023
No personal or corporate income tax changes, other than expansion of the More Opportunity for Skill Trades (MOST) program to include registered nurses, licensed practical nurses, and nurse practitioners who work for publicly funded employers.
Newfoundland & Labrador 2023 Budget - March 23, 2023
Physical Activity Refundable Tax Credit doubling; Senior's Benefit and Income Supplement increasing; no tax or fee increases, and a few other changes.
Saskatchewan 2023 Budget - March 22, 2023
No personal income tax changes; Manufacturing and Processing Exporter Tax Incentive extended until Dec 31, 2023; Mineral Exploration Tax Credit increased from 10% to 30%.
Quebec 2023 Budget - March 21, 2023
2023 tax rates reduced for bottom 2 tax brackets; Tax rate for tax credits reduced, but some amounts increased to compensate; Volunteer firefighter/search and rescue tax credit increased; New corporate tax holiday for large investment projects; and more.
New Brunswick 2023 Budget - March 21, 2023
No personal or corporate income tax changes were announced. NB will be adopting the federal "backstop" for carbon tax, which will result in NB residents seeing climate action incentive rebates from the federal government.
Ontario Seniors' Care At Home Refundable Tax Credit
Based on medical expenses, for those age 70+, available whether senior lives in their own home or elsewhere. Reduced by 5% of family net income over $35,000.
Manitoba 2023 Budget - March 7, 2023
The Basic Personal Amount is increased to $15,000 for 2023; Personal income tax brackets for 2024 will be $47,000 and $100,000; Health and Post-Secondary Education Tax Levy exemption threshold raised; Mineral and Green Energy Equipment tax credits are made permanent.
Federal Climate Action Incentive (CAI) Payments
CAI payments are currently received by residents of AB, MB, ON, and SK. Starting July 1, 2023 they will also be received by residents of NL, NS and PE. File your tax return on time to receive these quarterly payments!
US-Canadian Foreign Exchange Rate History
See our table of year-end and annual average US exchange rates for the years 1997 to 2022. Links are included to sites where more rates can be found.
Foreign Asset Reporting - Form T1135
If a Canadian resident individual, corporation or trust holds foreign investment property with a cost exceeding $100,000 Canadian at any time in the year, form T1135 must be filed with the tax return. Make sure you file this form if needed, as the penalties can be onerous.
Yukon 2023 Budget - March 2, 2023
There were no income tax changes announced in the Yukon budget.
February 2023
Alberta 2023 Budget - February 28, 2023
New Agri-Processing Investment Tax Credit; Increase in the donation tax credit rate; Cap on tuition, reducing student loan interest rates; Increasing Alberta adoption expense tax credit.
BC 2023 Budget - February 28, 2023
Increased BC Family Benefit; Home Owner Grant threshold increase; New renter's tax credit; PST exemption for AEDs; Partial property transfer tax exemption for new purpose-built rental buildings.
Partnerships and the Underused Housing Tax(UHT)
It seems likely that Canadian citizens who are joint owners of their home, who are conducting a business from their home, will have to file the UHT return even though they will not be subject to the tax.
Life in the Tax Lane March 2023
Topics in this month's 10-minute video for Canadian Tax and Financial Professionals:
| Underused Housing Tax |
| Unreported Capital Trades Included on a T5008 |
| Recurring Conversion Between Personal and Income Earning Use |
| Updates to CRA Online Portals |
| Foreign Tax Credit Verification |
Nunavut 2023 Budget - February 23, 2023
The Nunavut budget had no income tax changes, but proposes a new Carbon Credit and one-time heating fuel subsidy. New liquor tax to be implemented in 2023.
BC Speculation and Vacancy Tax Due Date March 31, 2023
Many homeowners in BC must file a declaration, even if they are exempt from the tax. You should receive your declaration letter by the end of February. Complete your declaration right away so as not to miss the due date!
2023 Donation Tax Credit Rates
There is one possible change to 2023 donation tax credit rates so far. Alberta has passed a bill to increase the rate on the first $200 from 10% to 60%, but the date it will be effective has not yet been announced.
Frequent Speculative Trading in a TFSA Can be Very Costly!
If a taxpayer is deemed to be carrying on a business (e.g., day-trading), tax is payable at the highest personal tax rate, and the gains will be income gains (100% of gain is taxed), not capital gains (50% is taxed). This has been confirmed by the Tax Court of Canada.
First Home Savings Account (FHSA) - Tax-Free
EVERYONE planning to buy a home should open a First Home Savings Account! Tax-deductible contributions and tax-free withdrawals - the best of RRSPs and TFSAs. Use with the Home Buyers' Plan for a bigger down payment. Available April 1, 2023.
RRSP Deadline Tuesday, March 1, 2023
March 1, 2023 is the deadline for making your RRSP contributions for the 2022 taxation year. RRSPs are one of the best tax-saving tools available to Canadians, but if you're currently low income, TFSAs would likely be better for you.
Northwest Territories 2023 Budget
No changes to personal or corporate income tax rates; Property mill rates and some fees increase by inflation; carbon tax rates start to increase annually by $15/tonne on April 1, 2023 until they reach $170/tonne on April 1, 2030.
Employee Taxable and Non-Taxable Benefits
CRA announced new/updated administrative policies in late 2022 related to employee parking benefits, social events provided by an employer, and gifts and awards provided by an employer.
CPP, OAS and EI Tax Slips Available Online
Official PDF versions of your tax slips for CPP, OAS and EI are available now in your "My Service Canada" account. The tax slips are also available through your CRA My Account, but not the "official" ones. There are links in your online accounts to make it easy to move from CRA to Service Canada and back again.
January 2023
Life in the Tax Lane February 2023
Topics in this month's 10-minute video for Canadian Tax and Financial Professionals:
| Underused Housing Tax |
| Statute-Barred Corporate Returns |
| Wage and Rent Subsidies - Partnership Income and Reviews |
| Relationship Breakdown - Written Separation Agreement |
| Canada Child Benefit - Shared-Custody Arrangement |
Quebec Tax Credit For Childcare Expenses
RL-24 slips MUST be provided to claim childcare expenses for 2022 and later years. This is a change from prior years in which childcare receipts were sufficient.
Canada's Underused Housing Tax (UHT) - Canadians Are Also Affected!
If a Canadian trust, partnership or corporation owns a "housing unit" (doesn't have to be on residentially zoned property) in Canada, then the Underused Housing Tax return will have to be filed by May 1st, even if no tax is payable. Those who fail to file by May 1, 2023 will pay large penalties (minimum $5,000 for individuals, $10,000 for non-individuals) even if they are exempt from the tax.
More resources are now available to help Canadians, non-resident non-Canadians, and accounting and tax professionals navigate this complicated legislation.
Which is Better - TFSAs or RRSPs?
If you're in the lowest tax bracket, use TFSAs first! If not, read our article and then make use of the TFSA vs RRSP calculator to help you decide.
Provincial/Territorial 2023-24 Budget Consultations
There's still time for taxpayer input into 2023 budget for many provinces, but the deadline has passed for Alberta, BC and PEI. AB, NB and SK have set dates for their 2023 budgets.
Prescribed Rate Loans to Spouses or Minor Children
The interest on a prescribed rate loan to spouses/children is always calculated at the rate in effect when the loan is created. The rate increased to 4% Jan 1/23, and will increase to 5% on Apr 1/23.
Shareholder Loans and Their Tax Implications
A shareholder can be deemed to receive taxable benefits related to s/h loans, either if insufficient interest is paid on the loan (even if not outstanding at year-end), or if the loan is not repaid within a certain time.
Did you own foreign assets (securities, real estate, life insurance policies, etc.) with total cost over $100,000 Cdn at any time in 2022? You must file form T1135, and penalties for not filing are high. Learn what's included, how to find the country code (even for ADRs), how to complete the form.
Making a Spousal RRSP Contribution Online
If you plan to make a spousal RRSP contribution online, BE CAREFUL! Your spouse probably has to be logged into their RRSP account online to do this, and indicate it is a spousal contribution. If you're not sure about what you're doing, don't do the contribution online.
Was Your Status as a BC Developing Farm Revoked?
If it was revoked because you didn't follow your development plan or meet your expected harvest date, but you did meet all requirements of the Farm Regulation, then your farm status was revoked in error. Time to "file a complaint", by Jan 31st.
Alberta Donation Tax Credit Rate
A Private Members' Bill received Royal Assent in December, increasing the tax credit rate for the first $200 of charitable donations from 10% to 60%. The change to the rate is not yet in effect.
2023 Non-Refundable Personal Tax Credits
We've published the tables of non-refundable tax credits for 2023 for Canada and all provinces and territories.
Historical Returns on Stocks, Bonds, T-Bills
2022 was not a good year for stock markets. However, over the past 5 or more years one would be far ahead by investing in most stock markets rather than T-bills or bonds. See returns for up to 72 years, and growth of $1,000 invested.
Use our calculator to determine your returns for 2022 or any time period for a particular investment or investment account, or your entire portfolio.
Reporting Foreign Income and Expenses on the Tax Return
All income and expenses must be reported on your tax return in Canadian dollars. The average US exchange rate for 2022 is 1.3013, which can be used for dividends and proceeds of sale, but not for adjusted cost basis.
See also Prior Years:
Revised: May 30, 2023