Federal Government’s annual indexation adjustment for personal income tax and benefit amounts: 6.3%.
Ontario’s lowest tax bracket (federal and provincial): $49,231
Ontario’s highest tax bracket (federal and provincial): $235,675
Old age security clawback for 2023: $86,912
OAS is now fully clawed back for retirees ages 65 to 74 at $141,917 and $147,418 for folks that are aged 75 and older.
New Tax-Free Savings Account contribution amount for 2023: $6,500
Total room for an individual who has never contributed before: $88,000
Yearly maximum pensionable earnings: $66,600
Maximum RRSP contribution limit for 2023: $30,780
*You have until the end of February to complete your 2022 RRSP contribution and the maximum amount is $29,210 plus any previously accumulated room.
Brand new account coming April 1st of 2023 for first-time home buyers – First Home Savings Account (FHSA) – To qualify, an individual must be 18, a resident of Canada, and they (and their spouse) must not have owned a principal residence anytime in the previous 4 calendar years. They can contribute up to $8,000 per year until they reach a total of $40,000. Contributions are deductible (like an RRSP) and withdrawals are tax-free, as long as they are being utilized for a qualified home purchase.
Lifetime capital gains exemption: up to $971,190.