Bookmark this updated MoneySense guide to personal income taxes for 2023. We will continue to revise it as new information and deadlines emerge. Our coverage includes expert answers from the Ask MoneySense and Ask a Planner columns to help you with practical, accurate tax guidance. Below is a clear summary of what’s new and the key dates you need to know for filing 2023 taxes in Canada.
What’s new for taxes?
Changes to the alternative minimum tax (AMT): Beginning January 1, 2024, the federal AMT rate increases to 20.5% from the previous 15%. The AMT sets a minimum tax level for taxpayers who claim certain deductions, exemptions or credits that otherwise reduce regular income tax. This adjustment does not affect 2023 tax returns and will only apply to taxpayers subject to the AMT rules.
Underused Housing Tax (UHT) filing extension: Owners of vacant or underused residential property who owed UHT for 2022 and have not yet filed or paid should note that the Canada Revenue Agency (CRA) extended the filing deadline to April 30, 2024, and is waiving penalties for that extended filing period.
2023 Income Tax Guide — Table of Contents
Tax-related dates to know
What happens if you miss the April 30th deadline
How much tax you may pay for 2023
How to file your 2023 income tax return
Ask MoneySense: common tax questions
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MoneySense is a long-standing personal finance magazine serving Canadians since 1999. Our editorial team of trained journalists works with leading Canadian financial experts to provide reliable advice. We also compare financial products from major institutions to help readers make informed choices.
When do T4s come out for 2023, when are taxes due, and what other deadlines should you know?
While the primary filing deadline for most Canadians is April 30, 2024, several other important tax dates affect contributions, employer reporting, instalments and specific situations such as death or self-employment. Below is a concise list of key 2023 tax deadlines to help you plan.
| Tax action item | Deadlines |
|---|---|
| GST/HST for business owners | Reported per the GST34-2 filing period on your account |
| Tax instalment dates for 2023 (self-employed, rental or investment income) | March 15, 2023; June 15, 2023; September 15, 2023; December 15, 2023 |
| Tax instalment date for farming/fishing self-employed | December 31, 2023 |
| Deadline for employers to issue T4 slips | February 29, 2024 |
| Last day to contribute to RRSPs if you turned 71 in 2023 | December 31, 2023 |
| Last day to open, contribute to and apply for matching grants for an RDSP for 2023 | December 31, 2023 |
| NETFILE opens for 2023 tax returns | February 22, 2024 |
| Last day to contribute to RRSPs for 2023 (for those up to age 70) | February 29, 2024 |
| Deadline to file your taxes (residents and non-residents, unless self-employed) | April 30, 2024 |
| Deadline to pay outstanding taxes | April 30, 2024 |
| Deadline to file your taxes if you or your spouse is self-employed | June 15, 2024 |
| Deadline to file and pay taxes for someone who died between Jan 1 and Oct 31, 2023 | April 30, 2024 |
| Deadline to file and pay taxes for someone who died between Nov 1 and Dec 31, 2023 | Six months after the date of death |
What happens if you miss the income tax deadline in Canada?
If you owe taxes and miss the filing and payment deadline, the Canada Revenue Agency charges interest on the unpaid balance. Interest accrues starting the day after the deadline — for 2023 returns that means interest begins on May 1, 2024. Late-filing penalties can include a base 5% of the balance owing plus 1% for each full month you fail to file, up to 12 months. For repeated failures (for example, if returns are unfiled for three years), penalties can increase to 10% of the balance owing plus 2% for each full month between due dates and filing.
How much tax will you pay for 2023?
Your total tax depends on your taxable income and the combination of federal and provincial/territorial tax brackets where you reside. Understanding your federal tax brackets helps estimate your federal tax liability and plan strategies such as RRSP contributions, tax-loss selling, and eligible deductions.
| Annual Income (Taxable) | Tax Bracket | Federal Tax Rate | Maximum Tax Per Bracket | Cumulative Tax |
|---|---|---|---|---|
| Up to $53,359 | First $53,359 | 15% | $8,003.85 | $8,003.85 |
| $53,359 to $106,717 | Next $53,358 | 20.5% | $10,938.39 | $18,942.24 |
| $106,717 to $165,430 | Next $58,713 | 26% | $15,265.38 | $34,207.62 |
| $165,430 to $235,675 | Next $70,245 | 29% | $20,371.05 | $54,578.67 |
| Over $235,675 | Amount over $235,675 | 33% | n/a | n/a |
How to file an income tax return in Canada
You can file your return several ways: using paper forms, NETFILE-certified tax software, an online tax-prep service, or by hiring a professional accountant or tax preparer. Choose the method that ensures accurate reporting of income, deductions, credits and any instalments paid. If you expect a refund or owe taxes, confirm payment options and timelines to avoid interest or penalties.
Working from home and home-office claims for 2023
There is no specific “work-from-home tax credit” for 2023, but eligible Canadians can claim certain home-office expenses. The temporary simplified method that allowed a flat $2 per day (up to $500) was eliminated for 2023. Employees claiming home-office expenses now generally need a completed T2200 form from their employer to support the claim and to use the detailed method of deduction. Keep proper records of eligible expenses such as utilities, supplies and the portion of your home used for work.
Ask MoneySense about taxes
We regularly receive tax questions from readers and share common scenarios with our panel of experts. Below are some popular topics from our Ask MoneySense and Ask a Planner columns that address practical tax concerns for Canadians.
- Are home renovations tax deductible in Canada? Guidance on available tax incentives and when renovation expenses may factor into taxes.
- How to reduce tax on severance pay Practical strategies for managing withholding and tax treatment when you receive severance.
- Designing a tax-efficient retirement income plan Considerations for minimizing taxes across registered and non-registered accounts in retirement.
- Filing taxes if you’re self-employed or have a side hustle Key deductions, deadlines and record-keeping tips for small-business owners and gig workers.
- The final tax return after a death Which returns must be filed and important deadlines when someone passes away.
- Tax implications of working abroad How residency status and foreign income affect Canadian tax obligations.
- U.S. withholding tax in an RRSP Situations where U.S. withholding tax may apply and opportunities to reduce or avoid it.
- Taxation when selling a small business Reporting capital gains, eligible exemptions and when professional tax advice is essential.
- Transfers between registered accounts How transfers between LIRA, LIF and RRSP accounts can affect tax treatment.
- Taxable portion of a cashed-in whole life insurance policy How to calculate the taxable amount when surrendering a policy.
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