Weekly Check In
Federal Government Announcement
Your money – the Federal Government has announced changes to the federal tax brackets for 2023 and Increased the TFSA annual contribution
Federal Tax Brackets are being adjusted higher in 2023: Income up to $53,359 is taxed at 15%, Income over $53,359 (up from $50,197) is taxed at 20.5%, Income over $106,717 (up from $100,392) is taxed at 26%, Income over $165,430 (up from $155,625) is taxed at 29%, Income over $235,675 (up from $221,708) is taxed at 33%. The basic personal amount for those with a net income of $165,430 or less is $15,000. For income over this the basic rate is clawed back until it reaches $13,521 for a net income over $235,675.
TFSA Contribution limit for 2023 is $6,500 up from $6,000 in 2022. The TFSA dollar limit is indexed to inflation and rounded to the nearest $500 each year. The CRA’s indexation for 2023 has been set at 6.3%. The formula for calculating your personal room is: unused TFSA contribution room to date from the start of the program in 2009 + funds withdrawn in this year + next year’s dollar limit = TFSA contribution room at the beginning of next year.
A small bit of help to the much larger impacts of increases in cost of living and the planned tax increases coming next year.
To understand how this could benefit you, talk to your tax advisor and your investment advisor.
Greg Libbrecht and the team at Platinum Business Services