2023 tax credits, due dates and when you can file: Your 2023 income tax return guide
You’ll want to bookmark the MoneySense guide for 2023 personal income taxes. We will be updating it frequently, as information becomes available and deadlines approach. Plus, we get answers from the experts you won’t find anywhere else, thanks to our Ask MoneySense and Ask A Planner columns. But, first, let’s look at the upcoming deadlines.
What’s new for taxes?
New alternative minimum tax changes: As of January 1, 2024, the AMT rate is 20.5% (previously 15%). Essentially, the AMT is a minimum level of tax for Canadians who claim certain deductions, exemptions and/or credits to reduce how much personal income tax they pay. The change doesn’t apply to 2023 income tax returns, though, and thankfully it doesn’t apply to most Canadians.
Deadline extended for underused housing tax (UHT): For residential property owners with vacant or underused real estate who owed the UHT from their 2022 income tax return and have yet to pay it, know that the Canada Revenue Agency (CRA) extended the due date to April 30, 2024, with penalties waived.
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When do T4s come out for 2023, when are taxes due, and what other deadlines are there?
You may know that your income tax return is due on April 30, 2024, but that is not the only date to know about. Find out when you can download your T4s, your last chance to contribute to your registered retirement savings plan (RRSP), when to file and so much more. These are your 2023 income tax return deadlines.
| Tax action item | Deadlines |
|---|---|
| GST/HST for business owners | Find it listed on your GST34-2 form, based on your reporting period. |
| Tax installment dates for 2023 (self-employed, rental or investment income, etc.) | • March 15, 2023 • June 15, 2023 • September 15, 2023 • December 15, 2023 |
| Tax installment dates for 2023 for self-employed in farming/fishing | December 31, 2023 |
| Deadline for employers to issue your T4 | February 29, 2024 |
| Last day to contribute to RRSPs for those aged 71 in 2023 | December 31, 2023 |
| Last day to open, contribute to and apply for grant-matching for an RDSP for 2023 | December 31, 2023 |
| Netfile opens for filing 2023 taxes | February 22, 2024 |
| Last day to contribute to RRSPs for 2023 for those up to 70 years of age in 2023 | February 29, 2024 |
| Deadline to file your taxes (Canadians and non-residents, unless you and/or your spouse is self-employed) | April 30, 2024 |
| Deadline to pay outstanding taxes | April 30, 2024 |
| Deadline to file your taxes if you and/or your spouse are self-employed | June 15, 2024 |
| Deadline to file and pay taxes for someone who died, if they passed between January 1 and October 31, 2023 | April 30, 2024 |
| Deadline to file and pay taxes for someone who died, if they passed between November 1 and December 31, 2023 | 6 months after the date of death |
What happens if you miss the income tax deadline in Canada?
Just like if you had an outstanding credit card balance, if you owe income tax in Canada you will have to pay interest on the balance owning. Thankfully, though, the interest rate is much lower for income tax than it is for credit cards.
How much interest would you owe on missed payments and outstanding taxes? Interest owed starts the day after the deadline: May 1, 2024. You could owe 5% of your balance owing, plus 1% for each full month you don’t file. Missed three years of income tax returns? You could owe 10% on your balance owed, plus an additional 2% for each month between the due dates and when you file your returns.
Read more on tax deadlines: Can you file multiple years of income taxes together in Canada?
How much tax will you pay for 2023?
Your tax situation may seem like an unknown but there are ways to gauge how much you could owe. You could look at your income tax brackets for Canada and the province or territory you live in. That can help with strategies like tax claims, capital losses with tax-loss selling, buying RRSPs and so on. Here are the federal tax brackets. Take a read of our in-depth annual feature about the Canadian, provincial and territorial income tax brackets.
Read more on tax brackets: Canada’s income tax brackets for 2023, plus the maximum tax you’ll pay based on income
| Annual Income (Taxable) | Tax Brackets | Tax Rates | Maximum Taxes Per Bracket | Maximum Total Tax |
|---|---|---|---|---|
| Up to $53,359 | The first $53,359 | 15% | $8,003.85 | $8,003.85 |
| $53,359 to $106,717 | The next $53,358 | 20.5% | $10,938.39 | $18,942.24 ($8,003.85 + $10,938.39) |
| $106,717 to $165,430 | The next $58,713 | 26% | $15,265.38 | $34,207.62 ($18,942.24 + $15,265.38 |
| $165,430 to $235,675 | The next $70,245 | 29% | $20,371.05 | $54,578.67 ($34,207.62 + $20,371.05) |
| Over $235,675 | Over $235,675 | 33% | n/a | n/a |
How to file an income tax return in Canada
Thankfully you have a few options for filing your taxes. You can do them yourself, either on paper or digital form, you can use an online tax prep tool or software, or you can hire someone. Of course, whatever route you choose, make sure you understand the process, your claims and if you have a balance owing or will be receiving a return. That way you don’t leave any money on (or under) the table.
Read more about filing income taxes for 2023:
Ask MoneySense about taxes
We get emails daily from Canadians asking about their particular tax situations, and we share those questions with our team of experts. And while everyone’s tax situation is unique to them, there are always other Canadians who can relate. Check out some of our most popular Ask MoneySense columns about taxes.
- Are home renovations tax deductible in Canada?
Doing home renovations? Find out if there are any tax incentives that Canadians are able to claim. - How to avoid tax on severance pay in Canada
Find out how you can reduce the tax payable on a severance payment, and what happens when receiving a severance while transitioning to retirement. - How to have the most tax-efficient retirement income plan
Should you plan your retirement savings around paying the least amount of taxes? Find out the implications and the better solution. - Self-employed? Here’s how to file taxes for a side hustle
Here’s what newly self-employed Canadians need to know about income tax deadlines, side-hustle tax deductions and more. - The final tax return after death: How it gets done in Canada
What tax returns should be completed when someone passes away? Why do these returns need to be filed? - The tax implications of working abroad for residents and non-residents of Canada
What taxes do you owe when working in another country if you’re a resident of Canada or have significant residential ties to the country? - U.S. withholding tax in an RRSP for Canadians
For Canadians who have withholding tax on U.S. income in an RRSP, sometimes this tax can be avoided. - How are you taxed when you sell a small business?
How do you report the income from the sale of a small business? What are the tax implications? And what do you do if the CRA won’t tell you what to do? - Tax implications of making transfers between registered accounts
When transferring money from her LIRA to a LIF and her RRSP, would that result in being taxed twice. - How to calculate the taxable amount for a cashed-in whole life insurance policy
Is a whole life insurance cash value taxable? Spoiler: Yes. But find out how to calculate the taxable amount.
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