Tax for 2024

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 ($) fromAnnual taxable income ($) toFederal tax rate, RConstant ($), K
0.0055,867.000.15000
55,867.01111,733.000.20503,073
111,733.01 173,205.000.26009,218
173,205.01246,752.000.2900 14,414
246,752.01and over0.330024,284

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 ($)Minimum basic personal amount ($)
15,70514,156
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 ($) fromAnnual taxable income ($) toProvincial tax rate, VConstant ($), KP
0.0051,446.00 0.05050
51,446.01102,894.000.09152,109
102,894.01150,000.000.11164,177
150,000.01220,000.00 0.12165,677
220,000.01and over0.13167,877

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 ($)
12,39911,58111,581
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

CPPYear’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
68,500.003,500.0065,000.000.04953,217.50
First additional CPP
contribution
68,500.003,500.0065,000.000.0100650.00
CPP contribution
Footnote
1
68,500.003,500.0065,000.000.05953,867.50

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
68,500.0073,200.004,700.000.0400188.00

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

EIMaximum Annual
Insurable Earnings
Employee
Contribution Rate
Employer Contribution
Rate
Maximum Annual
Employee Premium
Maximum Annual
Employer Premium
Canada except
QC
63,200.000.01660.023241,049.121,468.77

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 ($) fromTotal claim amount ($) toClaim code
No claim amountNo claim amount0
0.0015,705.001
15,705.0118,410.002
18,410.0121,115.003
21,115.0123,820.004
23,820.0126,525.005
26,525.01 29,230.006
29,230.0131,935.007
31,935.0134,640.008
34,640.0137,345.009
37,345.0140,050.0010

Chart 4 – 2024 Ontario claim codes

Total claim amount ($) fromTotal claim amount ($) toClaim code
No claim amountNo claim amount0
0.0012,399.001
12,399.0115,070.002
15,070.0117,741.003
17,741.0120,412.004
20,412.0123,083.005
23,083.0125,754.006
25,754.0128,425.007
28,425.0131,096.008
31,096.0133,767.009
33,767.0136,438.0010