Here's how much more Canadians will be paying in federal income tax hikes | National Post (stress added):
January 3, 2024 - "Nearly every Canadian will pay higher federal income taxes in 2024, according to the Canadian Taxpayers Federation (CTF). The federally incorporated, not-for-profit citizen’s group released its annual report on Tuesday highlighting the varied tax changes across Canada.... Citing data from the Fraser Institute, the report notes that the average Canadian family pays 46.1 per cent of its budget in taxes after adding up income taxes, sales taxes, property taxes and all other taxes.
- In 2024, the maximum pensionable earnings subject to the Canada Pension Plan (CPP) tax will increase, resulting in higher CPP contributions for both employers and employees. They will each pay $3,867, marking a $113 increase from the previous year for earnings of $68,500 or more.
- Additionally, a new CPP2 tax will be introduced and applied to earnings between $68,500 and $73,200, with a maximum tax amount of $188. For those earning $73,200 or above, the total CPP contribution (including CPP and CPP2) will rise to approximately $4,055, an overall increase of $301....
- In 2024, both the Employment Insurance (EI) tax rate and maximum insurable earnings in Canada will increase. Employees will pay $1,049 and employers $1,469 for EI. This is a rise of $47 for employees and $66 for employers, for those earning $63,200 or more.... Consequently, total federal payroll taxes (CPP and EI) will amount to $5,104 for workers earning $73,200 or above in 2024, while employers will be on the hook for $5,524.
- Canada’s federal carbon tax will rise from $65 to $80 per tonne on April 1, 2024, increasing the carbon tax rate per litre of gas. This means a higher cost for fueling vehicles, with a family filling a 70-litre minivan expected to pay about $12.32 more per fill-up. Most provinces and territories will be subject to this increased rate, except Quebec. The government suggests a net benefit for families with rebates, but a Parliamentary Budget Officer report shows the carbon tax will cost the average household between $377 and $911 in 2024-25, even after the rebates.
- A second carbon tax for fuel producers, introduced last year, could further raise fuel prices if producers don’t meet the requirements of the regulations. Citing the PBO’s analysis, the second carbon tax is expected to increase the price of gas by up to 17 cents per litre and cost the average household between $384 and $1,157 annually by 2030....
- Beginning on April 1, 2024, Canadians will pay more for beer, wine and spirits. The 'alcohol escalator tax' will increase excise taxes in line with inflation. The escalator tax will see a 4.7 per cent rise in federal excise tax on these beverages, resulting in an estimated additional cost of about $100 million to taxpayers for the 2024-25 period. Per CTF, taxes already account for about half of the price of beer, 65 per cent of the price of wine and more than three quarters of the price of spirits.
- Introduced last November, Canada’s new Digital Services Tax (DST) legislation is aimed at large online companies that host and generate marketplaces, social media platforms and online advertising revenue, like Google and Facebook. A previous PBO estimate found that DST will cost taxpayers $1.2 billion in 2024, but that revenue estimate depends on when the tax is implemented. Consumers should also expect to pay higher prices due to DST."
Read more: https://nationalpost.com/news/2024-canada-federal-tax-increases
Brace for impact: more federal tax hikes in 2024: Canadian Taxpayers Federation | Canada's Podcast | January 1, 2024:
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