2023 CRA Tax Updates
As with most years, there have been small CRA tax updates for 2023. We will give you a brief look at the changes this year including CPP contributions, Auto Deduction Rates, and TFSA’s.
The basic exemption amount for 2023 remains at $3,500.
Canadian Penson Plan
The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2023 have increased – $66,600.
Those who earn more than $66,600 in 2023 are not required or permitted to make additional contributions to the CPP.
The employee and employer contribution rates for 2023 increased to 5.95%
The self-employed contribution rate will be 11.90%.
Automobile Deduction limits
The ceiling for capital cost allowances (CCA) for multiple vehicle types is as follows:
Class 10.1 passenger vehicles – increased to $36,000, before tax. This is in respect of new & used vehicles acquired on or after January 1, 2023.
Class 54 Zero-Emission Passenger Vehicles – increased to $61,000 before tax.
Deductible leasing costs will be increased to $950 per month, before tax, for new leases entered into on or after January 1, 2023
Learn more about Automobile Deduction Limits here
- 68¢ /km for the first 5,000 kilometers driven
- 62¢ /km after that
TFSA
Your TFSA contribution room is the maximum amount that you can contribute to your Tax-Free Savings Account (TFSA).
Only contributions made under a valid SIN are accepted as TFSA contributions.
The annual TFSA dollar limits is follows:
- 2023 – $6,500
- 2019 to 2022 – $6,000
- 2016 to 2018 – $5,500
- 2015 – $10,000
- 2013 and 2014 – $5,500
- 2009 to 2012 – $5,000
The TFSA annual room limit will be indexed to inflation and rounded to the nearest $500.
If you are lost or confused about any of this information, do not worry. Padgett staff is here to help you and answer questions you may have. Call us at 250-744-3854 or submit your questions on our contact form.