  Tax changes in DT Max (2023) |
The following is a summary of the various new tax measures that required modifications in DT Max and
that relate to tax year 2023 (some new tax measures do not require any modifications in DT Max.)
Most of these new tax measures were introduced in the 2023 budgets, while some of them were introduced in prior
budgets, in press releases or in information bulletins. In addition, please note that, unless otherwise provided,
these proposed new tax measures should come into force by the time the 2023 returns are filed.
Finally, please note that we have also included changes that, while not representing new tax measures,
are changes of an administrative nature that required modifications in DT Max.
Federal
Newfoundland and Labrador
Prince Edward Island
Nova Scotia
New Brunswick
Quebec
Ontario
Manitoba
Saskatchewan
Alberta
British Columbia
Yukon
Northwest Territories
Nunavut
Federal
New tax measures proposed in the 2023 budget (March 28, 2023):
-
Tradesperson's tools expenses deduction
Under the tradesperson's tools expenses deduction, a tradesperson may claim a deduction of up to $500 of the amount by which the total cost of eligible new tools acquired as a condition of employment, in a taxation year, exceeds the Canada employment amount ($1,368 in 2023). The total cost of eligible new tools cannot exceed the sum of the employment income earned in the trade and any apprenticeship grants received to acquire the tools (these grants must be included in the income).
The 2023 Budget proposes to double the maximum employment income deduction for tradespeople's tool expenses from $500 to $1,000, effective for the 2023 tax year.
As a result of this change, the extraordinary costs for tools that can be deducted under the apprentice vehicle mechanic tool deduction will now be those that exceed the greater of: the sum of the increased tradesperson's tool deduction ($1,000) and the Canada employment amount ($1,368 in 2023), or 5% of the taxpayer's income earned as an apprentice mechanic (including income from apprenticeship grants).
-
Grocery Rebate - Increasing the GST credit for the 2022-2023 benefit year (July 1, 2022, to June 30, 2023)
The 2023 Budget proposes to introduce an increase in the maximum amount of the GST credit for January 2023 that would be known as the Grocery Rebate. Eligible individuals would receive an additional GST credit amount equal to twice the amount received for January. The Grocery Rebate would be delivered through the GST credit system as soon as possible after the legislation is passed.
-
Changes made to the Alternative Minimum Tax (AMT)
The 2023 Budget proposes several changes to the calculation of the AMT.
Broadening the AMT Base
The government proposes to increase the AMT capital gains inclusion rate from 80 per cent to 100 per cent. Capital loss carry forwards and allowable business investment losses would apply at a 50-per-cent rate. It is also proposed that 100 per cent of the benefit associated with employee stock options would be included in the AMT base.
The government proposes to include 30 per cent of capital gains on donations of publicly listed securities in the AMT base. The 30-per-cent inclusion would also apply to the full benefit associated with employee stock options to the extent that a deduction is available because the underlying securities are publicly listed securities that have been donated.
The Budget would broaden the AMT base by disallowing 50 per cent of the following deductions:
employment expenses, other than those to earn commission income; deductions for Canada Pension Plan, Quebec Pension Plan, and Provincial Parental Insurance Plan contributions; moving expenses; child care expenses; disability supports deduction; deduction for workers' compensation payments; deduction for social assistance payments; deduction for Guaranteed Income Supplement and Allowance payments; Canadian armed forces personnel and police deduction; interest and carrying charges incurred to earn income from property; deduction for limited partnership losses of other years; non-capital loss carryovers; and Northern residents deductions.
Expenses associated with film property, rental property, resource property, and tax shelters that are limited under the existing AMT rules would continue to be limited in the same manner.
In addition, the Budget proposes that only 50 per cent of non-refundable tax credits would be allowed to reduce the AMT, subject to certain exceptions. Some non-refundable credits that are currently disallowed would continue to be disallowed in full: the Political Contribution Tax Credit, the Labour Sponsored Venture Capital Corporations Credit, and the non-refundable portion of investment tax credits.
Raising the AMT Exemption
The Budget increases the AMT exemption from $40,000 to the start of the fourth federal tax bracket (approximately $173,000, based on expected indexation for the 2024 taxation year). The exemption amount would be indexed annually to inflation.
Increasing the AMT Rate
The Budget increases the AMT rate from 15 per cent to 20.5 per cent.
Coming into Force
The proposed changes would come into force for taxation years that begin after 2023. The Budget also states that additional information will be released later this year.
New tax measures proposed in the 2022 budget (April 7, 2022):
-
Multigenerational Home Renovation Tax Credit
For 2023 and subsequent taxation years, the 2022 Budget introduced this tax credit for expenses incurred to build a second self-contained dwelling unit to enable a qualifying individual to live with a qualifying relation.
-
Tax credit of 15% of the lesser of:
Qualifying expenditures, or; $50,000
Maximum credit: $7,500 ($6,263 in Quebec due to abatement) -
Eligible individuals:
Senior 65 years of age or older at the end of the year Adult eligible for the disability tax credit Qualifying relation: parent, grandparent, child, grandchild, brother/sister, uncle/aunt, nephew/niece of qualifying individual
-
Qualifying expenditures:
Include: cost of labour and professional services, building materials, fixtures, equipment rental, and permits. Exclude: furniture, construction equipment and tools, financing costs, etc.
Credit may be claimed by the qualifying individual, their spouse, the qualifying relation or their spouse upon completion of the renovation. Applicable to expenditures made on or after January 1, 2023.
-
Residential Property Flipping Rule
Property flipping involves purchasing residential property and reselling the property in a short period of time to realize a profit. The profit from property flipping is fully taxable as business income, which means it does not qualify for the 50-per-cent capital gains inclusion rate or the Principal Residence Exemption. Where the new deeming rule applies, the Principal Residence Exemption would not be available.
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Elimination of the flow-through share regime for oil, gas and coal activities
Flow-through share agreements allow corporations to renounce or “flow through” both Canadian exploration expenses and Canadian development expenses to investors, who can deduct the expenses in calculating their taxable income (at a 100-per-cent or 30-per-cent rate on a declining-balance basis, respectively). This facilitates the raising of equity to fund eligible exploration and development by enabling companies to issue shares at a premium.
Budget 2022 has proposed to eliminate the flow-through share regime for oil, gas, and coal activities by no longer allowing oil, gas and coal exploration or development expenditures to be renounced to a flow-through share investor.
This change was included in the legislative proposals released on August 9, 2022, and would apply to expenditures renounced under flow-through share agreements entered into after March 31, 2023.
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2023 Automobile Deduction Limits and Expense Benefit Rates for Businesses
On December 16, 2022, the Department of Finance Canada announced the automobile income tax deduction limits and expense benefit rates that will apply in 2023.
The following changes to limits and rates will take effect as of January 1, 2023:
The ceiling for capital cost allowances (CCA) for Class 10.1 passenger vehicles will be increased from $34,000 to $36,000, before tax, in respect of vehicles (new and used) acquired on or after January 1, 2023. The ceiling for CCA for Class 54 zero-emission passenger vehicles will be increased from $59,000 to $61,000, before tax, in respect of vehicles (new and used) acquired on or after January 1, 2023. Deductible leasing costs will be increased from $900 to $950 per month, before tax, for new leases entered into on or after January 1, 2023. The limit on the deduction of tax-exempt allowances paid by employers to employees who use their personal vehicle for business purposes in the provinces will increase by seven cents to 68 cents per kilometre for the first 5,000 kilometres driven, and to 62 cents for each additional kilometre. For the territories, the limit will also increase by seven cents to 72 cents per kilometre for the first 5,000 kilometres driven, and to 66 cents for each additional kilometre. The general prescribed rate used to determine the taxable benefit of employees relating to the personal portion of automobile expenses paid by their employers will be increased by four cents to 33 cents per kilometre. For people who are employed principally in selling or leasing automobiles, the rate used to determine the employee’s taxable benefit will be increased by four cents to 30 cents per kilometre. The maximum allowable interest deduction for new automobile loans of $300 per month will remain the same for 2023.
Newfoundland and Labrador
New tax measures proposed in the 2023 budget (March 23, 2023):
-
Newfoundland and Labrador disability amount
The Newfoundland Labrador disability amount (NLDA) is an additional amount paid with the Newfoundland and Labrador income supplement
(NLIS) and is designed to help low- and modest-income persons with disabilities.
To be eligible for the NLDA for a quarter an individual must be:
The maximum annual payment amount is:
This program is fully funded by the Newfoundland and Labrador provincial government.
-
Doubling of the Physical Activity Tax Credit
In the spirit of encouraging more active lifestyles and breaking down potential barriers to accessing recreational and sporting activities, the Government of Newfoundland and Labrador is doubling the Physical Activity Tax Credit. This credit will provide a refundable tax credit of up to $348 per family.
Prince Edward Island
New tax measures proposed in the 2023 budget:
-
Increasing the basic personal amount
The basic personal amount is increased to $12,750 for 2023, and $13,500 for 2024.
-
Increasing the spouse amount
The spousal amount is increased to $10,829 for 2023, and $11,466 for 2024.
-
Increasing the age amount
The age amount increased to $4,679 for 2023. The income threshold is also increased to $30,879.
-
Increasing the low-income tax reduction threshold
The low-income tax reduction threshold increased for 2023 to $20,750, and to $21,500 for 2024.
Nova Scotia
New tax measures proposed in the 2023 budget (March 23, 2023):
n/c
New Brunswick
New tax measures proposed in the 2023 budget (March 21, 2023):
-
Reduction of the personal income tax rates
New Brunswick announced on November 1, 2022, that their personal income tax rates would be reduced for 2023, with one bracket being eliminated.
The rate change did not affect the rate for donations in excess of $200, which is stated as 17.95% in Section 25 of the New Brunswick Income Tax Act.
-
Carbon Tax
New Brunswick will be adopting the "federal backstop" for carbon taxation, which will result in New Brunswickers seeing federal climate action incentive rebates based on the amount of the federal carbon tax that is collected in the province each year.
Start date for this measure was not indicated. Other Atlantic provinces will begin to implement it on July 1, 2023.
Quebec
New tax measures proposed in the 2023 budget (March 21, 2023):
-
General reduction in personal income tax as of the 2023 taxation year
The government intends to continue protecting Quebecers’ standard of living and encouraging their participation in the labour market by making a general reduction in personal income tax, which will help reduce the tax burden of Quebecers starting this year.
This general tax reduction will result in a decrease in the tax rates applicable to the first two taxable income brackets of the personal income tax table.
The tax legislation will therefore be amended so that, as of the 2023 taxation year:
on the one hand, the tax rate for the first taxable income bracket, which does not exceed $49,275 for the 2023 taxation year, will be reduced by one percentage point, from 15% to 14%; on the other hand, the tax rate for the second taxable income bracket, which is the bracket over $49,275, but not exceeding $98,540, will also be reduced by one percentage point, from 20% to 19%.
-
Decrease in the conversion rate
The tax legislation and regulations will also be amended so that, starting in the 2023 taxation year, the conversion rate applicable to the various amounts for calculating personal tax credits will be reduced from 15% to the new rate applicable to the first taxable income bracket of the personal income tax table, that is, 14%.
These amounts are:
the basic amount; the amounts for persons living alone; the amount with respect to age; the amount for retirement income; the amount for a severe and prolonged impairment in mental or physical functions; the amount for children under 18 enrolled in vocational training or post-secondary studies; the amount for other dependants; the amounts for calculating the transferred amount representing the recognized parental contribution.
-
Increase in the amounts granted for the purpose of calculating certain personal tax credits
To take into account the composition of certain households, particularly families with children enrolled in vocational training or post-secondary studies and ensure that they benefit from the new general tax reduction, the tax legislation will be amended to include an increase in the amounts granted for the purpose of calculating certain personal tax credits as of the 2023 taxation year, which are shown in the table below.
-
Reduction of the rate applicable to the calculation of the tax credit for career extension
In all cases, the tax credit is calculated, before the possible income-based reduction, on the basis of a rate of 15% applied to the amount by which eligible work income exceeds $5,000, up to the applicable limit.
The tax legislation and regulations will be amended so that, as of the 2023 taxation year, the tax credit will continue to be calculated on the basis of the rate applicable to the first taxable income bracket of the personal income tax table, such that the 15% rate will be replaced by a 14% rate.
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Reduction of the rate applicable to the calculation of the tax credit for volunteer firefighters and the tax credit for search and rescue volunteers
The tax system grants a non-refundable tax credit to individuals who provide eligible volunteer firefighter services to one or more fire safety services. It also grants a non-refundable tax credit to individuals who provide eligible services as search and rescue volunteers to an eligible search and rescue organization.
Each of these tax credits is calculated on the basis of an amount of $3,000, to which a rate of 15%, the rate applicable to the first taxable income bracket of the personal income tax table, is applied.
As of the 2023 taxation year, the tax legislation will be amended to replace the rate of 15% used to determine these tax credits by a rate of 14%, so that the tax credits continue to be calculated on the basis of the rate applicable to the first taxable income bracket of the personal income tax table.
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Reduction of the rate applicable to the calculation of the first-time home buyers’ tax credit
Since the 2018 taxation year, the tax system grants a non-refundable tax credit that is primarily aimed at first-time buyers of a qualifying home. For such a home acquired on or after January 1, 2022, the tax credit is equal to $1,500, which is the product obtained by multiplying $10,000 by the rate applicable to the first taxable income bracket of the personal income tax table for the year (15%). The tax credit was previously $750, which is the product obtained by multiplying $5,000 by the rate applicable to the first taxable income bracket of the personal income tax table for the year (15%).
The tax legislation will be amended so that, as of the 2023 taxation year, the tax credit will continue to be calculated on the basis of the rate applicable to the first taxable income bracket of the personal income tax table, such that the 15% rate will be replaced by a 14% rate.
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Refundable tax credit for childcare expenses
Childcare expenses paid in respect of an eligible child with a view to, in particular, enabling an individual or the individual’s spouse to work, pursue studies or actively seek employment may be converted into a refundable tax credit at a rate established on the basis of family income.
For the purposes of this tax credit, the definition of “eligible child” will be amended, as of the 2023 taxation year, to state that an eligible child of an individual for a taxation year means a child of the individual or the individual’s spouse, or a child who is a dependant of the individual or the individual’s spouse and whose income for the year does not exceed $12,638, if, in any case, at any time during the year, the child is under 16 years of age or is dependent on the individual or the individual’s spouse and has a mental or physical infirmity.
For greater clarity, the amount of $12,638 will be automatically indexed each year as of January 1, 2024.
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Alternative minimum tax
So that the flat tax rate for the purpose of calculating alternative minimum tax continues to be the rate applicable to the first taxable income bracket of the personal income tax table, the tax legislation will be amended to replace the rate of 15% by a rate of 14% as of the 2023 taxation year.
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Enhancement of the housing component of the refundable solidarity tax credit
The amounts paid under the housing component of the solidarity tax credit vary according to household composition. For the payment periods of July 2022 to June 2023 and July 2023 to June 2024, the amounts for the housing component are shown in the following table.
In order to help these households cope with the increase in their rent, the indexation normally provided for in the housing component of the solidarity tax credit will be doubled and applied as of the next payment period, which begins on July 1, 2023. Accordingly, the amounts of the housing component of the solidarity tax credit applicable for the period from July 2022 to June 2023 will be indexed at a rate of 12.88% (instead of 6.44%) for the payment period beginning July 1, 2023. The following table shows the increase in the amounts of the housing component of the solidarity tax credit.
This enhancement will be integrated into the parameters of the personal income tax system applicable as of July 1, 2023. Accordingly, the amounts resulting from this specific indexation for the housing component will be those considered for the purposes of calculating the indexation of this component of the solidarity tax credit applicable to the payment period beginning July 1, 2024.
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Enhancement of the non-refundable tax credits for volunteer firefighters and search and rescue volunteers
The $3,000 amount used to determine these tax credits will be increased to $5,000 so that each of these tax credits will correspond, as of the 2023 taxation year, to the amount equal to the product obtained by multiplying $5,000 by the rate of the first taxable income bracket of the personal income tax table applicable for the year.
In addition, to ensure that the increase in these non-refundable tax credits takes inflationary factors into consideration, the tax legislation will be amended to provide that the $5,000 amount will be automatically indexed each year, as of the 2024 taxation year.
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Economic update, December 8, 2022: Abolition of the refundable tax credit for seniors’ activities
The refundable tax credit for seniors’ activities will be abolished in respect of registration or membership fees paid after December 31, 2022.
Ontario
New tax measures proposed in the 2023 budget (March 23, 2023):
-
Expansion of the Guaranteed Annual Income System (GAINS) program
The Government of Ontario will be providing financial support to more seniors by proposing changes to expand the Guaranteed Annual Income System (GAINS) program, starting in July 2024, to see 100,000 additional seniors be eligible for the program and the benefit adjusted annually to inflation.
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ON Guide 2022 - Removed in 2023: Extension of the Ontario seniors' home safety tax credit
The temporary, refundable Ontario seniors' home safety tax credit has been extended for 2022. Complete Schedule ON(S12), Ontario Seniors' Home Safety Tax Credit, to claim this credit.
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Extension of the Ontario jobs training tax credit
The temporary, refundable Ontario jobs training tax credit has been extended for 2022.
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Introduction of the Ontario staycation tax credit
A temporary, refundable Ontario staycation tax credit has been introduced for individuals or families who have qualifying expenses for leisure accommodation in Ontario in 2022.
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Political contribution tax credit: How is the amount calculated?
The amount of credit depends on how much the taxpayer gives. The rate is:
75 per cent on the first $465 of donations in 2023 50 per cent on the portion of your donation between $465 and $1,552 in 2023 33.33 per cent on the portion between $1,552 and $3,532 in 2023.
Manitoba
New tax measures proposed in the 2023 budget (March 7, 2023):
-
Enhancement of the Basic Personal Amount
Budget 2023 announces the largest ever enhancement to the Basic Personal Amount. Effective for the 2023 tax year, the Basic Personal Amount will be increased to $15,000.
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Mineral Exploration Tax Credit made permanent
The Mineral Exploration Tax Credit, scheduled to expire on Dec. 31, 2023, is made permanent. This credit supports Manitobans who invest in flow-through shares of qualifying mineral exploration companies engaged in mineral exploration in Manitoba and is equal to 30 per cent of investments in flow-through shares.
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Green Energy Equipment Tax Credit made permanent
The Green Energy Equipment Tax Credit, scheduled to expire on Jun. 30, 2023, is made permanent. This credit supports the production and purchase of machinery and equipment used to generate renewable energy in Manitoba.
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Amendments to Manitoba’s Income Tax Act respecting the federal Critical Mineral Exploration Tax Credit
As a result of changes to the Canada Income Tax Act establishing a new Critical Mineral Exploration Tax Credit respecting critical minerals (which includes copper, nickel, lithium, cobalt, graphite, rare earth elements, scandium, titanium, gallium, vanadium, tellurium, magnesium, zinc, platinum group metal and uranium), minor amendments to Manitoba’s Income Tax Act are required to ensure that exploration expenses related to critical minerals continue to be eligible for Manitoba’s Mineral Exploration Tax Credit.
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Increase of the rebate for residential and farm properties
Manitoba will continue the phase-out of education property taxes by increasing the rebate for residential and farm properties from 37.5 per cent to 50 per cent in 2023.
Tax Credit and
Rebate Amounts
|
2021 |
2022 |
2023 |
|
Education Property Tax
Credit and Advance
|
Up to $525
|
Up to $438
|
Up to $350
|
|
Seniors' School Tax
Rebate
|
Up to $353
Minus 1.5%
on family net
income over
$40,000
|
Up to $294
Minus 1.25%
on family net
income over
$40,000
|
Up to $235
Minus 1.0%
on family net
income over
$40,000
|
|
Seniors' Education
Property Tax Credit
|
Up to $300
Minus 0.75%
of family net
income
|
Up to $250
Minus 0.625%
of family net
income
|
Up to $200
Minus 0.5%
of family net
income
|
|
Farmland School
Tax Rebate
|
Up to 60% of
school tax to
a maximum of
$3,750
|
Up to 50% of
school tax to
a maximum of
$3,125
|
Up to 40% of
school tax to
a maximum of
$2,500
|
Saskatchewan
New tax measures proposed in the 2023 budget (March 22, 2023):
-
Reduction of childcare fees
As of April 1, 2023, the Government of Saskatchewan will reduce childcare fees for families of children up to the age of six to an average of $10 per day.
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Increase of Saskatchewan Income Support benefit payments
Saskatchewan's 2023 budget includes $14.3 million to increase its Income Support benefit payments including the Adult Basic Benefit, the Shelter Benefit and the Alternative Heating Benefit by $30 each per month. Clients who receive the Saskatchewan Assured Income for disabilities (SAID), a program that did not exist 16 years ago, will receive $30 more per month in living income benefits. The SAID program will continue to pay the actual costs of a number of expenses such as utilities.
-
Increase of the maximum Senior’s Income Plan Benefit
The Government of Saskatchewan injects an additional $3 million to fulfill its three-year commitment to increase the maximum Senior’s Income Plan benefit. The maximum monthly benefit will rise by $30 per month to $360.
-
Increase of the Saskatchewan Mineral Exploration Tax Credit
The Saskatchewan Mineral Exploration Tax Credit has been increased from 10 to 30 per cent to attract mineral exploration investment in Saskatchewan.
New tax measures proposed in the 2022 budget:
-
Increase of the dividend tax credit rate for non-eligible dividends
The dividend tax credit rate for non-eligible dividends has been revised, increasing from 1.695% to 2.105% of the taxable dividend for 2022 (Bill 2 Royal Assent 2020-12-10).
Alberta
New tax measures proposed in the 2023 budget (February 28, 2023):
-
Increase of the Alberta Child and Family Benefit Amount
As part of the Alberta Affordability Action plan to combat the effects of inflation and rising costs of living, the Alberta Child and Family Benefit (ACFB) payments are increasing by 6% in 2023 as follows:
$1,330 up to $1,450 – one child $1,995 up to $2,193 – 2 children $2,660 up to $2,920 – 3 children $3,325 up to $3,632 – 4 or more children
-
Increase in the Charitable Donations Tax Credit
On December 15, 2022, Bill 202, Alberta Personal Income Tax (Charitable and Other Gifts) Amendment Act, 2022 (with notation "Awaiting Proclamation"), received Royal Assent. The bill will be in effect for 2023. A modification to Bill 202 was included in Bill 10 above, to deem the increase in the donation tax credit rate to have come into force on January 1, 2023.
-
Increase in the Alberta non-refundable Adoption Expense Tax Credit
The Alberta non-refundable adoption expense tax credit for 2023 will be increased to $18,210 to match the federal threshold. Indexation in future years will be at the Alberta indexation rate.
-
Alberta Guide 2022: Deadline for qualifying political contributions
Contributions to nomination contestants made after March 30, 2022, will no longer qualify for the Political Contributions Tax Credit.
-
Freeze of the Education Property Tax requisition for 2023-2024
The education property tax is a stable source of funding for Alberta’s education system, which supports the development of a skilled workforce that benefits all Albertans. The tax provides equitable funding to all public and separate school students and helps pay for instructional costs, including teacher salaries, textbooks and other classroom resources. The tax has covered about 30 per cent of educational operating costs in recent years, with the remainder funded through general revenue.
To improve affordability, the government has limited the increase in the total education property tax requisition in recent years. The total requisition was frozen for 2020-21 and 2021-22 and increased by a modest 1.5 per cent in 2022-23. As costs have continued to rise due to high inflation, the government will freeze the education property tax requisition at the 2022-23 level of $2.5 billion for 2023-24. The mill rates used to calculate the education property tax will decline in 2023 due to an increase in the overall equalized assessment. The residential/farmland rate will decrease from $2.65 to $2.56 per $1,000 of equalized assessment, while the non-residential rate will drop from $3.90 to $3.76.
The province continues to receive a lower share of the revenue from the property tax base than municipalities. Since the province assumed responsibility for education property tax in 1994, the province’s share of total provincial-municipal property tax revenue collected fell from 51 per cent to under 25 per cent in 2021.
British Columbia
New tax measures proposed in the 2023 budget (February 28, 2023):
-
Increase in the BC Affordability Credit
More than 85% of people received the BC Affordability Credit in January, with some families getting up to $410. The Government of British Columbia recently announced another BC Affordability Credit coming in April. Adults will receive up to $164 more and children up to $41.
-
New Renter's Tax Credit
This new income-tested credit will put as much as $400 back into the pockets of low- and moderate-income renters. This measure is expected to benefit more than 80% of renters across British Columbia.
-
Increase of the BC Family Benefit
This year’s budget delivers an important and permanent lift to the BC Family Benefit – a 10% increase. Now, parents will receive up to $1,750 for the first child, $1,100 for the second and $900 for the third. For a family with two children, the extra $250 per year can help buy healthy food, pay bills and enrol children in extracurricular activities. On top of the 10% increase, single parents will get as much as an extra $500 a year.
-
Increase of the BC income and disability assistance
To help British Columbians relying on income and disability assistance to make ends meet, income and disability rates will be increased, including a 33% lift to the shelter rate.
-
Updating of the Poverty Reduction Strategy for March 2024
The Government of British Columbia is updating its Poverty Reduction Strategy for March 2024 in order to better assist foster families. Starting in 2023, foster families will see their rates increase by 47%.
-
Expansion of the Climate Action Tax Credit
The Climate Action Tax Credit will be expanded to help people with low and moderate incomes offset the carbon tax, which increases in April 2023 to meet federal requirements as part of BC’s transition to a low-carbon future. A significant majority of people are projected to receive more through the enhanced credit than they pay in increased carbon tax by 2030. Payments are higher for people with lower income. Prior to the increase, a four-person family could receive a maximum of $500 a year. Starting July 2023, the same family could receive a maximum of $900.
-
Extension of the Farmers’ Food Donation Tax Credit
The farmers’ food donation tax credit is extended for three years to the end of 2026 to continue encouraging farmers and farming corporations to donate agricultural products produced in British Columbia to registered charities, such as food banks and school meal programs.
Yukon
New tax measures proposed in the 2023 budget (March 2, 2023):
-
Increase of the Personal Amount
The personal amount is increased both federally and for Yukon. For 2023, the amount will be increased from $13,521 to $15,000 for taxpayers with net income (line 23600) of $165,430 or less. For incomes above this threshold, the additional amount of $1,479 is reduced until it becomes zero at a net income of $235,675.
Northwest Territories
New tax measures proposed in the 2023 budget (February 8, 2023):
-
Revenue Initiatives
Budget 2023-24 does not introduce new taxes, but property and education mill rates will be increased by inflation in keeping with established financial management practices. The five-year fee review started in 2021-22 may result in fee rate changes.
Bill 60 – An Act to Amend the Petroleum Products and Carbon Tax Act was tabled on October 31, 2022, and, if passed, will increase the NWT carbon tax rate to $65 a carbon-equivalent tonne of greenhouse gas emissions effective April 1, 2023, and then increase the carbon tax rate annually by $15 a tonne until it reaches $170 a tonne on April 1, 2030. Aviation fuel and diesel fuel used to generate electricity for community distribution remain exempt from the carbon tax.
Nunavut
New tax measures proposed in the 2023 budget (February 23, 2023):
-
Introduction of the Nunavut Carbon Tax Credit
A new refundable Nunavut Carbon Tax Credit was introduced by the Government of Nunavut in 2023 to replace the Nunavut Carbon Rebate that was offering a direct 50% at-the-pump discount of the carbon tax. The new income tax credit will offer direct payments every three months starting July 2023 to offset higher fuel costs.
June 15, 2023
|