2023 tax rate card for Canada

The latest 2023 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 2023 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.

Tax brackets

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.

Tax credits

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.

Tax deductions

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.

For information on your 2024 tax return see those rates in our 2024 tax rate card. For additional tax planning support, see our 2023 Advisor’s Quick Reference Guide.