For 2024, the federal tax brackets and personal tax credit amounts were increased by an indexation factor of 1.047, which is a 4.7% increase from 2023. It’s best to speak with a tax accountant in Mississauga to analyze how these changes impact your specific financial situation.
Marginal tax rates for different incomes
The marginal tax rates for different income levels in Canada for the year 2024 are listed below:
- Income up to $55,867 - Taxed at 15% for regular income, 7.5% for capital gains, and ranges from -0.03% to 6.87% for Canadian dividends (eligible and non-eligible).
- Over $55,867 up to $111,733 - Tax rate is 20.5% for regular income, 10.25% for capital gains, and ranges from 7.56% to 13.19% for Canadian dividends.
- Over $111,733 up to $173,205 - Tax rate is 26% for regular income, 13% for capital gains, and ranges from 15.15% to 19.52% for dividends.
- Over $173,205 up to $246,752 - Tax rate is 29.32% for regular income, 14.66% for capital gains, and ranges from 19.73% to 23.34% for dividends.
- Over $246,752 – The tax rate is 33% for regular income, 16.5% for capital gains, and ranges from 24.81% to 27.57% for dividends. (SOURCE)
Federal basic personal amounts
For 2024, the minimum personal amount is $14,156, and the maximum is $15,705, both taxed at a rate of 15%. (SOURCE)
Combined federal and provincial tax rates
Individual provinces have also updated their tax brackets for 2024, affecting the combined federal and provincial tax rates for income in Canada's largest provinces.
In Ontario, the lowest combined tax bracket covers incomes up to $51,446 (up from $49,231 in 2023), taxed at 20%. The highest bracket, for incomes over $246,752 (previously $235,675), is taxed at 53.5%. Someone earning $100,000 will pay a maximum tax rate of 31.5%. (SOURCE)
A tax accountant in Mississauga can provide personalized strategies for tax planning and optimization based on these rates. But for basic guidance, here is a summary of the tax rates for 2024:
- First $51,446: 5.05%
- Over $51,446 up to $102,894: 9.15%
- Over $102,894 up to $150,000: 11.16%
- Over $150,000 up to $220,000: 12.16%
- Over $220,000: 13.16%
There are also additional surtaxes for high-income earners, which are calculated on top of the regular tax rates. The surtax rate is 20% for taxable income greater than $5,554 and an additional 36% for taxable income greater than $7,108. (SOURCE)
Note that the provided information is for general understanding and might not apply to specific situations. Consulting a tax accountant in Mississauga is recommended for personalized advice.
Seek expert tax assistance.
For those needing assistance with understanding and managing their taxes in Mississauga, G&P Accounting Services offers expert help. They can provide a dedicated tax accountant in Mississauga to help you navigate the complexities of tax laws, ensure proper management of your taxes, and maximize potential savings.
To begin this process and gain peace of mind regarding your tax obligations, contact G&P Accounting Services at 905-808-0055. With their expertise, the complexities of tax laws become more manageable, allowing you to focus on other important aspects of your life and business.
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