Tax deadlines and limits for the 2023 tax year (January 2023)
January 12, 2023
Each new tax year brings with it a listing of tax payment and filing deadlines, as well as some changes with respect to tax saving and planning strategies. Some of the more significant dates and changes for individual taxpayers for 2023 are listed below.
RRSP deduction limit and contribution deadline
The RRSP current year contribution limit for the 2022 tax year is $29,210. In order to make the maximum current year contribution for 2022 (for which the contribution deadline will be Wednesday March 1, 2023), it will be necessary to have earned income for the 2021 taxation year of $162,275.
Tax-free savings account contribution limit
The tax-free savings account (TFSA) contribution limit for 2023 is increased to $6,500. The actual amount which can be contributed by a particular individual includes both the current year limit and any carryover of uncontributed or re-contribution amounts from previous taxation years.
Taxpayers can find out their personal 2023 TFSA contribution limit by calling the Canada Revenue Agency’s Individual Income Tax Enquiries line at 1-800-959-8281. Those who have registered for the CRA’s online tax service My Account can obtain that information by logging into My Account.
Individual tax instalment deadlines for 2023
Millions of individual taxpayers pay income tax by quarterly instalments, which are due on the 15th of March, June, September and December 2023.
The actual tax instalment due dates for 2023 are as follows:
- Wednesday March 15, 2023
- Thursday June 15, 2023
- Friday September 15, 2023
- Friday December 15, 2023
Old Age Security income clawback threshold
For 2023, the income level above which Old Age Security (OAS) benefits are clawed back is $86,912.
Individual tax filing and payment deadlines in 2023
For all individual taxpayers, including those who are self-employed, the deadline for payment of any balance of 2022 taxes owed is Monday May 1, 2023.
Taxpayers (other than the self-employed and their spouses) must file an income tax return for 2022 on or before Monday May 1, 2023.
Self-employed taxpayers and their spouses must file a 2022 income tax return on or before Thursday June 15, 2023.
Employment Insurance Premiums for 2023 (January 2023)
January 12, 2023
The Employment Insurance premium rate for 2023 is set at 1.63%.
Yearly maximum insurable earnings are set at $61,500, making the maximum employee premium $1,002.45.
As in previous years, employer premiums are 1.4 times the employee premium. The maximum employer premium for 2023 is therefore $1,403.43.
Québec Pension Plan contributions for 2023 (January 2023)
January 12, 2023
The Québec Pension Plan contribution rate for 2023 is set at 6.40% of pensionable earnings for the year.
Maximum pensionable earnings for the year will be $66,600, and the basic exemption is unchanged at $3,500.
The maximum employer and employee contributions to the plan for 2023 will be $4,038.40 each.
For more information : Retraite Québec – Québec Pension Plan (gouv.qc.ca)
Canada Pension Plan Contributions for 2023 (January 2023)
January 12, 2023
The Canada Pension Plan contribution rate for 2023 is set at 5.95% of pensionable earnings for the year.
Maximum pensionable earnings for the year will be $66,600, and the basic exemption is unchanged at $3,500.
The maximum employer and employee contributions to the plan for 2023 will be $3,754.45 each, and the maximum self-employed contribution will be $7,508.90.
For more information Canada Pension Plan – Overview – Canada.ca
Federal individual tax credits for 2023 (January 2023)
January 12, 2023
Dollar amounts on which individual non-refundable federal tax credits for 2023 are based, and the actual tax credit claimable, will be as follows:
Credit amount Tax credit
Basic personal amount* $15,000 $2,250
Spouse or common-law partner amount $15,000 $2,250
Eligible dependant amount* $15,000 $2,250
Age amount $8,396 $1,259.40
Net income threshold for erosion of age credit $42,335
Canada employment amount $1,368 $205.20
Disability amount $9,428 $1,414.20
Adoption expenses credit $18,210 $2,731.50
Medical expense tax credit income threshold amount $2,635
*For taxpayers having net income for the year of more than $165,430, amounts claimable for the basic personal amount, the spousal amount and the eligible dependant amount for 2023 may differ
Federal individual tax rates and brackets for 2023 (January 2023)
January 12, 2023
The indexing factor for federal tax credits and brackets for 2023 is 6.3%. The following federal tax rates and brackets will be in effect for individuals for the 2023 tax year.
Income level Federal tax rate
$15,000 – $53,359 15.0%
$53,360 – $106,717 20.5%
$106,718 – $165,430 26.0%
$165,431 – $235,675 29.0%
Over $235,675 33.0%
Canada Pension Plan retirement benefit amounts for 2023
January 6, 2023
The federal government has announced the amounts which may be paid as benefits under the Canada Pension Plan (CPP) during 2023. The amount of retirement benefit receivable by an individual is based on contributions made, but such benefits are also indexed to inflation. The indexing rate as of January 2023 is 6.5%.
For 2023, the maximum monthly retirement benefit which may be received for new benefits (those starting in January 2023) is increased to $1306.57, and changes have also been made to other types of benefits payable under the CPP.
Details of the maximum amounts payable under the Canada Pension Plan as of January 2023 can be found in the federal government release, which is available at isp-card-jan-march-2023-en.pdf (canada.ca).
Old Age Security benefit amounts for first quarter of 2023
January 6, 2023
The federal government has announced the amounts which will be paid to recipients of Old Age Security benefits for the first quarter of 2023. Such benefit amounts are indexed quarterly, based on the changes in the Consumer Price Index.
For the January to March 2023 period, the maximum OAS benefit payable to recipients who are under the age of 75 is $687.56. Recipients who are aged 75 and older can receive a maximum monthly benefit of $756.32.
Details of OAS and related benefits payable during the first quarter of 2023 can be found on the federal government website at isp-card-jan-march-2023-en.pdf (canada.ca).
Prescribed interest rates for first quarter of 2023
December 17, 2022
The Canada Revenue Agency has announced the interest rates which will apply to amounts owed to and by the Agency for the first quarter of 2023, as well as the rates that will apply for the purpose of calculating employee and shareholder taxable benefits.
Debit rate Credit rate Shareholder Benefits
January 1 – March 31 8% 4%/6% 4%
Additional details of interest rates charged and paid by the Canada Revenue Agency can be found on the CRA website at https://www.canada.ca/en/revenue-agency/services/tax/prescribed-interest-rates.html.
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