2024 Payroll Tax Update Canada

Modified on Sat, 20 Jul at 10:15 AM

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:

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

 

 

 

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

 

 

 

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