2024 Payroll Tax Update Canada: The information in red is from 2022-2023, Revenue Quebec hasn't updated all 2024 information officially yet.
The following information has been summarized based on the Canada Revenue Agency publication t4127-01024e.pdf
This information can be obtained in detail at the following links:
- T4127-JAN Payroll Deductions Formulas - 115th Edition - Effective January 1, 2024 - Canada.ca
- t4127-01-24e.pdf (canada.ca)
- https://www.canada.ca/en/services/taxes.html
- https://www.revenuquebec.ca/documents/en/formulaires/tp/TP-1015.F-V%282023-01%29.pdf 2024 link
- Revenu Québec- Formulas to Calculate Source Deductions and Contributions (revenuquebec.ca) 2024 link
- Summary of the 2024 Actuarial Report on the Employment Insurance Premium Rate - Canada.ca (includes Employer EI amounts and Premium Reduction Program Amounts)
UPDATE HISTORY
| Date | Details | Notes |
| Dec. 05, 2023 | Created first version of this KB | |
| Dec. 21, 2023 | Updated Federal Basic Personal Amount in examples to be 15,704 | New !! |
Disclaimer
This guide reflects some income tax changes recently announced which, if enacted as proposed, would be effective January 1, 2024. At the time of publishing, these proposed changes were not law. We recommend that you use the Payroll Deductions Online Calculator (PDOC), the publication T4032 Payroll Deductions Tables, or the publication T4008 Payroll Deductions Supplementary Tables, and the formulas in this guide for withholding, starting with your first payroll in 2024.
Federal Brackets
Please see here for information on updating brackets for the new tax year.
Note: The naming convention of your brackets may vary.
|
Bracket |
Type |
Description |
2023 Values |
||
|
CPP LIMITS |
Withholding |
Exemption, rate and maximum deduction |
Amount Over |
Tax % |
Limit |
|
3,500.00 |
6.4 |
3.867.50 |
|||
|
CPP/QPP W/H |
Withholding |
Exemption, rate and maximum deduction |
Amount Over |
Tax % |
Limit |
|
3,500.00 |
5.95 |
3,867.50 |
|||
|
CPP/QPP W/H BONUS |
Withholding |
Exemption, rate and maximum deduction |
Amount Over |
Tax % |
Limit |
|
0.00 |
5.95 |
3,754.45 |
|||
|
CPP/QPP MAX |
Limit + Tax% |
Pensionable earnings maximum |
|
Tax % |
Limit |
|
|
0.00 |
68,500 |
|||
|
EI LIMITS |
Withholding |
Rate and maximum deduction |
|
Tax % |
Limit |
|
|
1.66 |
1,049.12 |
|||
|
EI MAX |
Limit + Tax% |
Insurable earnings maximum |
|
Tax % |
Limit |
|
|
0.00 |
63,200 |
|||
|
EI MAX Q |
Limit + Tax% |
Insurable earnings maximum |
|
Tax % |
Limit |
|
|
0.00 |
63,200 |
|||
|
EI W/H |
Withholding |
Rate and maximum deduction |
|
Tax % |
Limit |
|
|
1.66 |
1049.12 |
|||
|
EI W/H Q |
Withholding |
Rate and maximum deduction |
|
Tax % |
Limit |
|
|
1.32 |
834.24 |
|||
|
FED TAX |
Withholding |
Withholding brackets and rates |
Amount Over |
Tax % |
Tax Amount |
|
0.00 |
15 |
0.00 |
|||
|
55,867 |
20.5 |
8380.05 |
|||
|
111,733 |
26 |
19,832.58 |
|||
|
173,205 |
29 |
35,815.30 |
|||
|
246,752 |
33 |
57,143.93 |
|||
Provincial Brackets
Please see here for information on how to update brackets for the new tax year.
For more information on Quebec Tax Brackets, see the Revenue Quebec Source Deductions and Contributions Guide for Employers 2023
Note: The naming convention of your brackets may vary.
|
Bracket
|
Type
|
Description
|
2024 Values
|
|||
| AB TAX | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 10 | 0.00 | ||||
| 148,269.00 | 12 | 14,826.90 | ||||
| 177,922.00 | 13 | 18,385.26 | ||||
| 237,230.00 | 14 | 26,095.30 | ||||
| 355,845.00 | 15 | 42,701.40 | ||||
| BC TAX | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 5.06 | 0.00 | ||||
47,937.00 |
7.7 | 2,425.61 |
||||
| 95,875.00 | 10.5 | 6,116.84 | ||||
| 110,076.00 | 12.29 | 7,607.95 | ||||
| 133,664.00 | 14.7 | 10,506.92 | ||||
| 181,232.00 | 16.8 | 17,499.42 | ||||
| 252,752.00 | 20.5 | 29,514.78 | ||||
| MB TAX W/H | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 10.8 | 0.00 | ||||
| 47,000.00 | 12.75 | 5,076.00 | ||||
| 100,000.00 | 17.40 | 11,833.50 | ||||
| NB TAX W/H | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 9.4 | 0.00 | ||||
| 49,958.00 | 14 | 4,696.05 | ||||
| 99,916.00 | 16 | 11,690.17 | ||||
| 185,064.00 | 19.5 | 25,313.85 | ||||
| NL TAX W/H | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 8.7 | 0.00 | ||||
| 43,198.00 | 14.5 | 3,758.23 | ||||
| 86,395.00 | 15.8 | 10,021.28 | ||||
| 154,244.00 | 17.8 | 20,741.94 | ||||
| 215,943.00 | 19.8 | 31,724.36 | ||||
| 275,870.00 | 20.8 | 43,589.91 | ||||
| 551,739.00 | 21.3 | 100,970.66 | ||||
| 1,103,478.00 | 21.8 | 218,491.07 | ||||
| NS TAX W/H | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 8.79 | 0.00 | ||||
| 29,590.00 | 14.95 | 2,600.96 | ||||
| 59,180.00 | 16.67 | 7,024.67 | ||||
| 93,000.00 | 17.5 | 12,662.46 | ||||
| 150,000.00 | 21 | 22,637.46 | ||||
| NT TAX W/H | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 5.9 | 0.00 | ||||
| 50,597.00 | 8.6 | 2,985.22 | ||||
| 101,198.00 | 12.2 | 7,336.91 | ||||
| 164,525.00 | 14.05 | 15,062.80 | ||||
| NT PTAX | Limit + Tax% | NT - Payroll Tax | Tax % | Limit | ||
| 2 | ||||||
| NU TAX W/H | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 4 | 0.00 | ||||
| 53,268 | 7 | 2,130.72 | ||||
| 106,537 | 9 | 5,859.55 | ||||
| 173,205 | 11.5 | 11,859.67 | ||||
| ON TAX W/H | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 5.05 | 0.00 | ||||
| 51,446.00 | 9.15 | 2,598.02 | ||||
| 102,894.00 | 11.16 | 7,305.51 | ||||
| 150,000.00 | 12.16 | 12,562.54 | ||||
| 220,000.00 | 13.16 | 21,074.54 | ||||
| PEI TAX W/H | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 9.65 | 0.00 | ||||
| 32,656.00 | 13.63 | 3,151.30 | ||||
| 64,313.00 | 16.65 | 7,466.15 | ||||
| 105,000 | 18 | 14,240.54 | ||||
| 140,000 | 18.75 | 20,540.54 | ||||
| QC LOW RATE | Tax Credit | Total Credits Claimed x Bracket % | Tax % | Per Allowance | ||
| 15 | Blank | |||||
| QC RED | Deduction | Maximum income reduction | % | Max. Amount | ||
| 6 | 1,380.00 | |||||
| QC TAX W/H | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 14 | 0.00 | ||||
| 51,780.00 | 19 | 7,249.20 | ||||
| 103,545.00 | 24 | 17,084.55 | ||||
| 126,000.00 | 25.75 | 22,473.75 | ||||
| QPIP EE | Withholding | Rate and limit | Tax % | Limit | ||
| 0.494 | 464.36 | |||||
| QPIP ER | Withholding | Rate and limit | Tax % | Limit | ||
| 0.692 | 650.48 | |||||
| QPIP MAX | Limit + Tax % | Maximum earnings | Tax % | Limit | ||
| 0 | 94,000.00 | |||||
| QPP W/H | Withholding | Exemption, rate and maximum deduction | Amount Over | Tax % | Limit | |
| 3,500.00 | 6.40 | 3,776.10 | ||||
| QPP W/H BONUS | Withholding | Exemption, rate and maximum deduction | Amount Over | Tax % | Limit | |
| 0.00 | 6.40 | 3,776.10 | ||||
| SK TAX W/H | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 10.5 | 0.00 | ||||
| 52,057 | 12.5 | 5,465.99 | ||||
| 148,734 | 14.5 | 17,550.62 | ||||
| YT TAX W/H | Withholding | Withholding brackets and rates | Amount Over | Tax % | Tax Amount | |
| 0.00 | 6.4 | 0.00 | ||||
| 55,867.00 | 9 | 3,575.49 | ||||
| 111,733.00 | 10.9 | 8,603.43 | ||||
| 173,205.00 | 12.8 | 15,303.88 | ||||
| 500,000.00 | 15 | 57,133.64 | ||||
| YT LOW RATE | Tax Credit | Reduction amounts | Tax % | Per Allowance | ||
| 6.4 | blank | |||||
MAX EMPLOYMENT CRED
| Reporting Authority Code | Filing Status Code | Activation Code | Tax % | Limit |
| 1433 |
ON SURTAX
|
Reporting Authority Code |
Filing Status Code |
Activation Code |
Amount Over |
Tax% |
Tax Amount |
Limit |
Max W/H |
|
|
|
|
5,554.00 |
20 |
0 |
0 |
0 |
|
|
|
|
7,108.00 |
56 |
310.8 |
0 |
0 |
Method Step Table Changes
None applicable to this tax year.
Calculation Method Changes Required
There are changes required. This document is still work in progress. Please check this link soon KA-03507 · Customer Self-Service (sparkrock.com) (updated Dec 13th)
TD1 Amounts
Due to the proposed changes to the Federal basic personal amount (BPAF), the existing Nova Scotia legislation to the Basic Personal Amount (BPANS), and the legislation to the Yukon Basic Personal Amount (BPAYT), the Claim Code charts cannot be produced with ranges, as was previously done. Accordingly, the Federal, Nova Scotia, and Yukon Claim Code Charts will not be produced as the BPAF, BPANS, and BPAYT will be unique to each employee’s annual income. Please see here for information on how to update TD1 amounts for the new tax year.
Federal
Federal Basic Personal Amount
If Employee’s Net Income is =<173,205 use the Basic Personal Amount of $15,705.
If Employee’s Net Income is >=$246,752, use the Basic Personal Amount of $14,156.
If Employee’s Net Income falls between these two amounts, use the following formula:
Where $173,205 < NI* < $246,752 BPAF**= $15,705 - (NI* - $165,430) × ($1,479 / $70.245)***
*Variable NI represents Net income for the year from the employer = A + HD
**If the BPAF has three or more digits after the decimal point, increase the second digit after the decimal point by one if the third digit is five or more, and drop the third digit. If the third digit after the decimal point is less than five, drop the third digit
***Note that there is no rounding on this division
The Federal and Yukon Claim Code chart income range is $2,430 between all claim codes once the BPAF or BPAYT has been calculated. For example, if the Federal BPAF is $12,719 for a particular employee, then claim code 2 range would be $12,719 – $15,149 and so forth up to claim code 10.
Provinces and Territories:
AB | BC | MB | NB | NL | NT | NS | NU | ON | PE | QC | SK | YT
Alberta
| Type | Amount |
| Basic personal amount | 21,885.00 |
| Spouse or common-law partner amount | Up to 21,885.00 |
British Columbia
| Type | Amount |
| Basic personal amount | 12,580.00 |
| Spouse or common-law partner amount | Up to 12,580.00 |
Manitoba
| Type | Amount |
| Basic personal amount | 15,780.00 |
| Spouse or common-law partner amount | Up to 15,780.00 |
New Brunswick
| Type | Amount |
| Basic personal amount | 13,044.00 |
| Spouse or common-law partner amount | Up to 13,044.00 |
Newfoundland and Labrador
| Type | Amount |
| Basic personal amount | 10,818.00 |
| Spouse or common-law partner amount | Up to 10,818.00 |
Northwest Territories
| Type | Amount |
| Basic personal amount | 17,373.00 |
| Spouse or common-law partner amount | Up to 17,373.00 |
Nova Scotia
| Type | Amount |
| Basic personal amount | 8,481.00 |
| Spouse or common-law partner amount | Up to 8,481.00 |
BPANS = Where A ≤ $25,000, BPANS is equal to $11,481; Where $25,000 < A < $75,000, BPANS is equal to: $11,481 – [(A – $25,000) × 6%)];* Where A ≥ $75,000, BPANS is equal to $8,481 * If Nova Scotia’s basic personal amount (BPANS) has three or more digits after the decimal point, increase the second digit by one if the third digit is five or more, and drop the third digit. If the third digit after the decimal point is less than five, drop the third digit.
The Nova Scotia Claim Code chart income range is $1,600 between all claim codes once the BPANS has been calculated. For example, if Nova Scotia’s BPANS is $11,481 for a particular employee, then the claim code 2 range would be $11,481 – $13,081 and so forth up to claim code 10
Nunavut
| Type | Amount |
| Basic personal amount | 18,767.01 |
| Spouse or common-law partner amount | Up to 18.767.01 |
Ontario
| Type | Amount |
| Basic personal amount | 12,399.01 |
| Spouse or common-law partner amount | Up to 12,399.00 |
Prince Edward Island
| Type | Amount |
| Basic personal amount | 13,500.00 |
| Spouse or common-law partner amount | Up to 13,500.00 |
Quebec
| Type | Amount |
| Basic personal amount | 16,143 |
| Spouse or common-law partner amount | Up to16,143 |
| Amount for other dependents | 4,519 |
| Amount for a child under 18 enrolled in post-secondary studies | 3,101 |
| Additional amount for person living alone (single-parent family) | 2,284 |
| Amount for a severe and prolonged impairment in mental or physical functions | 3,584 |
| Amount for a person living alone | 1,850 |
| Age amount | 3,395 |
| Amount for retirement income | 3,017 |
| Reduction threshold of the age amount, the amount for a person living alone, the amount for retirement income and the amount for a career extension | 36,590 |
Saskatchewan
| Type | Amount |
| Basic personal amount | 18,491.00 |
| Spouse or common-law partner amount | Up to 18,491.00 |
Yukon
The Yukon Basic Personal Amount (BPAYT) formula mirrors the federal Basic Personal Amount (BPAF) formula. BPAYT = BPAF
|
Type |
Amount |
|
Basic personal amount |
BPAYT Formula |
|
Spouse or common-law partner amount |
Please refer to TD1 form for YT
|
Other Configurations
Please see here for information on other configurations to be updated in preparation for the new tax year.
Return to Payroll Tax Update in the Configuring Workforce section
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article