Tax Return Changes For 2023 In Canada

Tax rules change every year and 2023 tax year is no exception. We have consolidated all the tax changes by province for your easy consumption. Review the federal change and the province specific changes applicable to you. If you have any questions, you can Contact Us with subject ‘new tax changes’.

Federal Tax Changes

Residential status question

A new question has been added this year for you to report your residential status. Available options are Canadian resident, Factual resident, Non-resident or deemed residents, immigrant or emigrant. You can enter this information in General tab under Canadian citizenship section.

Property flipping

Any gain from the disposition of a housing unit that you owned or held for less than 365 consecutive days before its disposition is deemed to be business income and not a capital gain, unless disposition was due to certain life events. Review the questions in Income tab under “Capital gains from real estate” for line 12700.

First home saving account

A first home savings account (FHSA) is a registered plan which allows you to save to buy or build a qualifying first home tax-free (up to certain limits). If you opened an FHSA in 2023, you can claim up to $8,000 in FHSA contributions you made by December 31, 2023, as an FHSA deduction on your 2023 income tax and benefit return. Enter the information from TFHSA slip in Income and Deduction tab.
Line 12905 : Report Taxable first home savings account (FHSA) income on this line.
Line 12906 : Report Taxable first home savings account (FHSA) other income on this line.
Line 20805 : Report Taxable first home savings account (FHSA) deduction on this line.

Multigenerational home renovation tax credit (MHRTC) – Line 45355

The MHRTC is a new refundable tax credit that allows an eligible individual to claim certain renovation costs (up to $50,000) to create a secondary unit within an eligible dwelling so that a qualifying individual can reside with their qualifying relation. Enter the information in credit tab and our program will calculate schedule 12 to claim this credit.

Employment Expenses for Working at Home Due to COVID-19

This has been removed for 2023 tax return. You can claim regular employment expense in Deduction tab, if applicable.

Basic personal amount – Line 30000

This has increased for most taxpayers to $15,000 whose income is less than $165,430. If your income is more than $235,675, you can claim basic personal amount of $13,520.

Spouse or common-law partner amount – Line 30300

This has increased for most taxpayers to $15,000 whose income is less than $165,430. If your income is more than $165,430, maximum for spouse amount will be limited to your basic personal amount.

Amount for an eligible dependent – Line 30400

This has increased for most taxpayers to $15,000 whose income is less than $165,430. If your income is more than $165,430, maximum amount for eligible dependent will be limited to your basic personal amount.

Alberta tax changes in 2023

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

  • Basic personal amount increased to 21,003 ;
  • Maximum age amount increased to 5,853 ;
  • Maximum spouse amount is now 21,003 ;
  • Maximum amount for an eligible dependent is now 21,003 ;
  • Maximum BC caregiver amount for dependent increased to 12,458 ;
  • Maximum disability amount increased to 16,201 ;
  • Maximum adoption amount for eligible child increased to 18,210 ;

British Columbia tax changes in 2023

BC renter’s tax credit

You can claim this credit if you rented and occupied an unit for at least 6 months in the calendar year and you are either 19 years of age or older or married or parent of a child. You can claim $400 if your income is less than $60,000 and then it reduces by 2% and goes to zero for income greater than $80,000. You can enter this information in Credit tab.

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

  • Basic personal amount increased to 11,981 ;
  • Maximum age amount increased to 5,373 ;
  • Maximum spouse amount is now 10,259 ;
  • Maximum amount for an eligible dependent is now 10,259 ;
  • Maximum BC caregiver amount for dependent increased to 5,243 ;
  • Maximum disability amount increased to 8,986 ;
  • Maximum adoption amount for eligible child increased to 18,210 ;

 

Manitoba tax changes in 2023

Change in provincial non-refundable tax credit

  • Basic personal amount increased to 15,000 ;

Renters tax credit

Renters tax credit is a new refundable credit for renters of residential properties. This replaces the renters component of the education property tax credit.

Property tax changes for homeowners

Changes have been made to the education property tax credit, seniors school tax rebate and school tax credit for homeowners.

New Brunswick tax changes in 2023

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

  • Basic personal amount increased to 12,458 ;
  • Maximum age amount increased to 5,615 ;
  • Maximum spouse amount and amount for an eligible dependent increased to 9,764 ;
  • Maximum caregiver amount for dependent increased to 5,430 ;
  • Maximum amount for infirm dependent increased to 5,431 ;
  • Maximum disability amount increased to 9,309 ;

Newfoundland and Labrador tax changes in 2023

Limit changed for physical activity tax credit

You can claim up to $2,000 per family for the fees paid in 2023 on registration in an eligible program of physical activity for yourself, your spouse and your children under 18 years of age. You can enter this information in Credit tab.

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings and bigger tax refund you. Here is the summary of changes:

  • Basic personal amount increased to $10,382 ;
  • Maximum age amount increased to $6,627 ;
  • Maximum spouse amount and amount for an eligible dependent increased to $8,483 ;
  • Maximum caregiver amount for dependent and amount for infirm dependent increased to $3,297 ;
  • Maximum disability amount increased to $7,005 ;
  • Maximum adoption amount for eligible child increased to $14,010 ;

 

Nova Scotia tax changes in 2023

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings and bigger tax refund you. Here is the summary of changes:

  • Basic personal amount remains $11,481 ;
  • Maximum age amount increased to $6,606 ;
  • Maximum spouse amount and amount for an eligible dependent increased to $11,481 ;
  • Maximum caregiver amount for dependent and amount for infirm dependent increased to $2,798 ;
  • Maximum disability amount increased to $7,341 ;

Ontario tax changes in 2023

Credit removed

For 2023 tax year, Ontario staycation tax credit, Job training tax credit and Ontario seniors’ care at home tax credit have been removed.

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

  • Basic personal amount increased to $11,865 ;
  • Maximum age amount increased to $5,793 ;
  • Maximum spouse amount and amount for an eligible dependent increased to $10,075 ;
  • Maximum caregiver amount for dependent and amount for infirm dependent is $5,593 ;
  • Maximum disability amount increased to $9,586 ;
  • Maximum adoption amount for eligible child increased to $14,476 ;

Prince Edward Island tax changes in 2023

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

  • Basic personal amount increased to $12,750 ;
  • Maximum spouse amount and amount for an eligible dependent increased to $10,829;

Quebec tax changes in 2023

Tax decrease for the first two income tax brackets – Line 401

For 2023, the tax rates dropped from:

  • 15% to 14% for taxable income up to $49,275 ;
  • 20% to 19% for taxable income more than $49,275, but not more than $98,540. ;

Decrease in some tax credit rates and increase in some amounts

For 2023, the conversion rate for the amounts used to calculate some personal tax credits as well as the rates of some tax credits decreased from 15% to 14%.

This decrease affects the following tax credits:

  • the basic personal amount (line 350);
  • the age amount, amount for a person living alone and amount for retirement income (line 361);
  • the amount for dependants and amount transferred by a child 18 or over enrolled in post-secondary studies (line 367);
  • the amount for a severe and prolonged impairment in mental or physical functions (line 376);
  • the tax credit for volunteer firefighters and search and rescue volunteers (line 390);
  • the tax credit for career extension (line 391);
  • the home buyers’ tax credit (line 396).

Following amounts have been increased:

  • the amount for a child under 18 enrolled in post-secondary studies (line 7 of Schedule A);
  • the amount for other dependants (line 37 of Schedule A);
  • the maximum amount that can be transferred by a child 18 or over enrolled in post-secondary studies (lines 2 and 4 of Schedule S);
  • the amount used to calculate the tax credit for volunteer firefighters and search and rescue volunteers (line 390).

Text or email notifications

You can enter a mobile number for text notifications or enter your email for email notifications for certain events in your file.

Expenses related to working remotely due to COVID-19 pandemic

This deduction has been removed. You can no longer claim this for 2023 tax return.

First home savings account (FHSA) – Line 215 / Line 154

If you contributed to an FHSA, you may be entitled to a deduction on line 215. Any amount you withdrew from an FHSA may have to be included in your income on line 154.

Tax credits respecting the work premium – Line 456

You can claim the adapted work premium if you or your spouse on December 31 received benefits under the Basic Income Program paid by the Ministère de l’Emploi et de la Solidarité sociale.

Tax credit for home-support services for seniors – Line 458

The tax credit rate has been increased from 36% to 37%.

Tax credit for seniors’ activities – removed

This credit has been removed as of 2023.

Property flipping (home or rental property) – Line 164

If you dispose of (sell, transfer, exchange, give, etc.) a residential property (including rental property or a right to purchase) that you owned for less than 365 consecutive days and no life event justified the disposition, it will be considered as property flipping and needs to be reported on line 164.

Alternative minimum tax – Line 432

The rate used to calculate the alternative minimum tax decreased from 15% to 14%.

Balance due- Line 479

If your balance due is over $10,000, you must pay it electronically.

Quebec prescription drug insurance plan

On July 1, 2023, the contribution rates for the Québec prescription drug plan were increased, and the maximum premium was raised from $710 to $731. The maximum premium for 2023 is therefore $720.50.

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

  • Deduction for workers on line 201 increased to $1,315 ;
  • Basic personal amount on line 350 increased to $17,183 ;
  • The amount for a person living alone increased to $1,969 on schedule B ;
  • Age amount increased to $3,614 on schedule B ;

Saskatchewan tax changes in 2023

Home renovation expenses – removed

This credit has been removed for 2023 tax year.

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings and bigger tax refund you. Here is the summary of changes:

  • Basic personal amount increased to $17,661 ;
  • Maximum age amount increased to $5,380 ;
  • Maximum spouse amount and amount for an eligible dependent increased to $17,661 ;
  • Maximum caregiver amount for dependent and amount for infirm dependent increased to $10,405 ;
  • Maximum disability amount increased to $10,405 ;