Federal tax for 2024
Indexing for 2024
For 2024, the federal income thresholds, the personal amounts and the Canada employment amount have been changed based on changes in the consumer price index.
The federal indexing factor for January 1, 2024 is 4.7%. The tax credits corresponding to the claim codes in the tables have been indexed accordingly. Employees will automatically receive the indexing increase, whether or not they file Form TD1, 2024 Personal Tax Credits Return.
Tax rates and income thresholds
For 2024, the federal tax rates and income thresholds are:
|
Annual taxable income ($) from |
Annual taxable income ($) to |
Federal tax rate, R |
Constant ($), K |
|---|---|---|---|
|
0.00 |
55,867.00 |
0.1500 |
0 |
|
55,867.01 |
111,733.00 |
0.2050 |
3,073 |
|
111,733.01 |
173,205.00 |
0.2600 |
9,218 |
|
173,205.01 |
246,752.00 |
0.2900 |
14,414 |
|
246,752.01 |
and over |
0.3300 |
24,284 |
Canada Employment Amount
The non-refundable tax credit for CEA is built into the federal payroll deductions tables. The federal CEA is the lesser of:
-
$1,433 and
-
the individual's employment income for the year
The maximum annual non-refundable tax credit is $214.95.
Pension income is not eligible for this credit. If you are paying pension income, use the PDOC to calculate the tax deduction.
Basic personal amounts
The federal personal amounts for 2024 are:
|
Maximum basic personal amount ($) |
Minimum basic personal amount ($) |
|---|---|
|
15,705 |
14,156 |
For more detailed information on the personal amounts, go to Form TD1.
Ontario tax for 2024
Ontario indexing for 2024
For 2024, the provincial income thresholds, the personal amounts, and the tax reduction amounts have been indexed. They have been changed based on changes in the consumer price index.
The indexing factor for January 1, 2024, is 4.5%. The tax credits corresponding to the claim codes in the tables have been indexed accordingly. Employees will automatically receive the indexing increase, whether or not they file Form TD1ON, 2024 Ontario Personal Tax Credits Return.
Tax rates and income thresholds
For 2024, the Ontario tax rates and income thresholds are:
|
Annual taxable income ($) from |
Annual taxable income ($) to |
Provincial tax rate, V |
Constant ($), KP |
|---|---|---|---|
|
0.00 |
51,446.00 |
0.0505 |
0 |
|
51,446.01 |
102,894.00 |
0.0915 |
2,109 |
|
102,894.01 |
150,000.00 |
0.1116 |
4,177 |
|
150,000.01 |
220,000.00 |
0.1216 |
5,677 |
|
220,000.01 |
and over |
0.1316 |
7,877 |
Personal amounts
For 2024, the Ontario non‑refundable personal tax credits are:
|
Basic personal amount ($) |
Maximum spouse or common-law partner amount ($) |
Maximum amount for an eligible dependant ($) |
|---|---|---|
|
12,399 |
11,581 |
11,581 |
For more detailed information on the personal amounts, see Form TD1ON, 2024 Ontario Personal Tax Credits Return.
Canada Pension Plan (CPP) and Employment Insurance (EI)
CPP contributions for 2024
|
CPP |
Year’s Maximum Pensionable Earnings (YMPE) |
Basic Exemption |
Year’s Maximum Contributory Earnings (YMCE) |
Employee and Employer Contribution Rate |
Maximum Employee and Employer Contribution |
|---|---|---|---|---|---|
|
CPP base contribution |
68,500.00 |
3,500.00 |
65,000.00 |
0.0495 |
3,217.50 |
|
First additional CPP contribution |
68,500.00 |
3,500.00 |
65,000.00 |
0.0100 |
650.00 |
|
CPP contribution |
68,500.00 |
3,500.00 |
65,000.00 |
0.0595 |
3,867.50 |
For 2024, the provincial income thresholds, the personal amounts, and the tax reduction amounts have been indexed. They have been changed based on changes in the consumer price index.
Second additional CPP contribution for 2024
|
|
Year’s Maximum Pensionable Earnings (YMPE) |
Year’s Additional Maximum Pensionable Earnings (YAMPE) |
Pensionable earnings subject to Second Additional Contribution |
Second Additional Employee and Employer Contribution Rate |
Maximum Second Additional Employee and Employer Contribution |
|
Second additional CPP contribution |
68,500.00 |
73,200.00 |
4,700.00 |
0.0400 |
188.00 |
You stop deducting CPP and CPP2 (if applicable) when the employee reaches their maximum annual contribution for the year. For more information, see Chapter 2, “Canada Pension Plan contributions” in Guide T4001 Employers’ Guide – Payroll Deductions and Remittances.
Note: As an employer, you must remit the employer’s and employee’s share of CPP and CPP2 contributions.
EI premiums for 2024
|
EI |
Maximum Annual Insurable Earnings |
Employee Contribution Rate |
Employer Contribution Rate |
Maximum Annual Employee Premium |
Maximum Annual Employer Premium |
|---|---|---|---|---|---|
|
Canada except QC |
63,200.00 |
0.0166 |
0.02324 |
1,049.12 |
1,468.77 |
You stop deducting EI when the employee reaches their maximum annual premium. For more information, see Chapter 3, "Employment Insurance premiums" in Guide T4001 Employers’ Guide – Payroll Deductions and Remittances.
Note: As an employer, you must remit the employer’s and employee’s share of EI premiums.
Chart 3 – 2024 Federal claim codes
|
Total claim amount ($) from |
Total claim amount ($) to |
Claim code |
|---|---|---|
|
No claim amount |
No claim amount |
0 |
|
0.00 |
15,705.00 |
1 |
|
15,705.01 |
18,410.00 |
2 |
|
18,410.01 |
21,115.00 |
3 |
|
21,115.01 |
23,820.00 |
4 |
|
23,820.01 |
26,525.00 |
5 |
|
26,525.01 |
29,230.00 |
6 |
|
29,230.01 |
31,935.00 |
7 |
|
31,935.01 |
34,640.00 |
8 |
|
34,640.01 |
37,345.00 |
9 |
|
37,345.01 |
40,050.00 |
10 |
Chart 4 – 2024 Ontario claim codes
|
Total claim amount ($) from |
Total claim amount ($) to |
Claim code |
|---|---|---|
|
No claim amount |
No claim amount |
0 |
|
0.00 |
12,399.00 |
1 |
|
12,399.01 |
15,070.00 |
2 |
|
15,070.01 |
17,741.00 |
3 |
|
17,741.01 |
20,412.00 |
4 |
|
20,412.01 |
23,083.00 |
5 |
|
23,083.01 |
25,754.00 |
6 |
|
25,754.01 |
28,425.00 |
7 |
|
28,425.01 |
31,096.00 |
8 |
|
31,096.01 |
33,767.00 |
9 |
|
33,767.01 |
36,438.00 |
10 |