Savings/Pensions
RRSP contributions:
- Maximum contribution for 2023: $30,780
- Last day for 2023 contribution: February 29, 2024
- Maximum contribution for 2024: $31,560
- January 1: new RRSP contribution room becomes available for 2024
- December 31: deadline to contribute to RRSP IF account owner turns 71 in the year
- December 31: deadline to convert RRSP to RRIF if account owner turns 71 in the year
First Home Savings Account (FHSA):
- Year one: $8.000 maximum
- Year two: $8,000 + unused contribution from year one
- Lifetime limit: $40,000
TFSA contributions:
- Maximum contribution for 2024: $7,000
- Last day for 2023 contribution: December 31, 2023; unused contributions rollover year-to-year
- Maximum catch-up contribution as of 2024: $95,000
Canada Pension Plan (CPP):
- YMPE (year’s maximum pensionable earnings) for 2024: $68,500
- YAMPE (year’s additional maximum pensionable earnings) for 2024: $73,200
- Contribution rate for employers and employees: 5.95% each
- Maximum contribution for self-employed: $7,735
- Average retirement pension at age 65 as of October 2023: $758.32/month
- Maximum retirement pension at age 65 (2024): $1,364.60/month
Old Age Security (OAS):
- Maximum pension age 65 to 74 as of January 1, 2024: $ 713.34/month
- Maximum pension age 75+ as of January 1, 2024: $ 84.67/month
- Recovery tax (clawback) begins at $86,912 (July 2024 – June 2025)
- Maximum income threshold age 65 to 74 as of January 1, 2024: less than $142,609 worldwide income
- Maximum income threshold age 75+ as of January 1, 2024: less than $148,179 worldwide income
Registered Education Savings Plan (RESP):
- Plan lifetime contribution limit/beneficiary $50,000
- Canada Education Savings Grant: government matches 20% of contributions, up to $2,500 each year and up to a lifetime maximum grant amount of $7,200 per beneficiary;
- Canada Learning Bond (low income families): initial payment of $500 for the first year the child is eligible, plus $100 for each additional year of eligibility, up to age 15, for a maximum of $2,000
Registered Disability Savings Plan (RDSP):
- Canada Disability Savings Grant $3,500 annually, $70,000 lifetime if family income is below $111,733
- Canada Disability Savings Bond $1,000 annually, $20,000 lifetime if family income is less than $36,502
- Annual deadline to open a plan, make contributions and apply for the Grant and Bond for 2024: December 31, 2024
Tax
Personal income tax:
- T4s/T5s: issue due date February 29, 2024
- Basic minimum personal amount (federal): $14,156 (2024)
- Basic maximum personal amount (federal): $15,705 (2024)
- Alternative Minimum Tax: 20.5% (exemption $173,205)
- Personal Income Tax Return: 30/04/24
- Personal Income Tax Return deadline for self-employed with business income: June 15, 2024
2024 Federal Brackets:
- 15%: 0 – $55,867
- 20.5%: $55,867- $111,733
- 26%: $111,733- $173,205
- 29%: $173,205- $246,752
- 33%: $246,752 +
Corporate income tax:
- Deadline to file corporate income tax returns for 2023 where the corporate year-end is December 31: June 30, 2024
Economics
- Inflation rate: +3.4% (December 2023)
- Debt-to-income ratio (the ratio of debt to disposable income): 181.6%
- Prime rate: 7.2%
Life/Health Insurance
- Average life insurance coverage: $474,000 (2022; in 2019: $423,000)
- Province with highest average protection per insured household: Ontario @ $504,000 (2022)
- Death benefits paid by all Canadian insurers: $9.4 billion (2022)
- Living benefits including disability benefits, cash surrenders or dividends: $6.7 billion (2022)
- Health insurance benefits paid: $43.9 billion (2022)
- Retirement benefits inc. annuity payments: $53.7 billion (2022)
(Source: Canadian Life and Health Insurance Facts 2020, Canadian Life and Health Insurance Association)
