2024 Tax rate card
The latest 2024 tax rate card puts the most up-to-date marginal tax rates and tax brackets by taxable income source, non-refundable tax credits, and much more all in one place. This reference card is designed to help you and your clients with tax planning for the 2024 calendar year.
Included in this piece are tables for:
- combined federal and provincial marginal tax rates and brackets by taxable income source: interest and regular income, capital gains, eligible and ineligible dividends
- federal tax brackets
- federal personal tax credits
- annual contribution limits for a tax-free savings account (TFSA) and registered retirement savings plan (RRSP)
- withholding taxes for RRSP or registered retirement income fund (RRIF) withdrawals
- Canadian eligible dividends received with no tax payable
- Employment Insurance premiums
- Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) contributions
- CPP benefits
- Old Age Security (OAS) benefits
Confused about what all these numbers mean?
Contact your advisor for help with your personal situation and to create a solid tax plan for you. In the meantime, here are some details that might help you get started.
Your tax bracket is a combination of both federal and provincial tax brackets using your taxable income. Be aware that your provincial tax bracket is based on your province of residence on December 31. If you moved throughout the year, you’d use your new province for tax purposes.
Marginal tax rates
The marginal tax rates are the combined federal and provincial tax rates (including surtaxes) on the next dollar of taxable income. It’s assumed that the only credit claimed is the basic personal amount.
Federal and provincial tax credits help reduce the amount of tax you pay. Tax credits can be either non-refundable or refundable.
Non-refundable tax credits can reduce your tax owing but are generally calculated at the lowest tax rate. If the total of your non-refundable credits is more than your taxes owing, you won’t get a refund for the difference. Some common non-refundable tax credits include the basic personal amount, pension income credit, medical expense credit, and the charitable donation credit.
Refundable tax credits may also reduce or eliminate the amount of tax you owe. However, unlike non-refundable credits and tax deductions, a refundable credit can create a tax refund even when the credit amount is larger than your taxes owing. The Canada workers benefit (CWB) and medical expense supplement are examples of refundable tax credits.
Deductions will reduce your taxable income, so the tax reduction will be reflected at your marginal tax rate. This could put you in a lower tax bracket and reduce the amount of tax you pay. For example, a deduction of $1,000 will reduce your income by that same amount. Generally, your tax savings will be your deduction multiplied by your marginal tax rate. Some common tax deductions include RRSP contributions, realizing capital losses, interest and carrying charges, and childcare expenses.
Proper tax planning is something that can save you a lot of money. There are many different tax strategies you can implement, depending on your age, income, and personal situation and goals. We recommend meeting with your advisor to come up with a plan that works for you and helps you achieve your specific goals.
This communication is published by Manulife Investment Management. Any commentaries and information contained in this communication are provided as a general source of information only and should not be considered personal investment, tax, accounting or legal advice and should not be relied upon in that regard. Professional advisors should be consulted prior to acting based on the information contained in this communication to ensure that any action taken with respect to this information is appropriate to their specific situation. Facts and data provided by Manulife Investment Management and other sources are believed to be reliable as at the date of publication.
Certain statements contained in this communication are based, in whole or in part, on information provided by third parties and Manulife Investment Management has taken reasonable steps to ensure their accuracy but can’t be held liable for such information being inaccurate. Market conditions may change which may impact the information contained in this document.
You may not modify, copy, reproduce, publish, upload, post, transmit, distribute, or commercially exploit in any way any content included in this communication. Unauthorized downloading, re-transmission, storage in any medium, copying, redistribution, or republication for any purpose is strictly prohibited without the written permission of Manulife Investment Management.
Manulife Investment Management is a trade name of Manulife Investment Management Limited and The Manufacturers Life Insurance Company.
Manulife, Manulife Investment Management, the Stylized M Design, and Manulife Investment Management & Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.