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We have everything you need to know about tax credits, changes and deadlines, and more. Get the info you need to prep and file your 2024 income tax return.
Doing your own taxes? Prepping your documents for a tax professional? Either way, welcome to the MoneySense guide for personal income taxes, your information hub for filing your 2024 return (bookmark it now). 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 tax deadlines.
New capital gains inclusion rate: With its 2024–25 budget, the federal government announced that capital gains in excess of $250,000 per year would be subject to a 66.7% inclusion rate effective June 25, 2024. That’s up from the 50% that applied previously (and which still applies to your first quarter-million in yearly gains). However, with the prorogation of government and that the actual amendment to the Income Tax Act bringing the rule into effect has not yet passed, many wondered if these changes would apply to your 2024 tax return.
Read: CRA to continue administering changes to capital gains tax during prorogation
New alternative minimum tax changes: As of January 1, 2024, the AMT rate is 20.5% (it was 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 most Canadians.
Read: Update on bare trust tax filing rules for 2024 and beyond
Charitable donations extension: The Government of Canada announced extending of 2024 charitable donations to February 28, 2025, instead of the expected December 31, 2024.
Read: The best charities in Canada for 2024: Where to donate to make an impact
There have been lots of tax changes for 2024. If you have any concerns, always consult a tax professional.
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You may know that your income tax return is due on April 30, 2025, 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 2024 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 2024 (self-employed, rental or investment income, etc.) | • March 15, 2024 • June 15, 2024 • September 15, 2024 • December 15, 2024 |
| Tax installment dates for 2024 for self-employed in farming/fishing | December 31, 2024 |
| Deadline for employers to issue your T4 | February 28, 2025 |
| Last day to contribute to RRSPs for those aged 71 in 2024 | December 31, 2024 |
| Last day to open, contribute to and apply for grant-matching for an RDSP for 2024 | December 31, 2024 |
| Netfile opens for filing 2024 taxes | February 17, 2025 |
| Last day to contribute to RRSPs for 2024 for those up to 70 years of age in 2024 | March 3, 2025 |
| Deadline to file your taxes (Canadians and non-residents, unless you and/or your spouse is self-employed) | April 30, 2025 |
| Deadline to pay outstanding taxes | April 30, 2025 |
| Deadline to file your taxes if you and/or your spouse are self-employed | June 16, 2025 |
| Deadline to file and pay taxes for someone who died, if they passed between January 1 and October 31, 2024 | April 30, 2025 |
| Deadline to file and pay taxes for someone who died, if they passed between November 1 and December 31, 2024 | 6 months after the date of death |
Just like if you had an outstanding credit card balance, if you owe income tax in Canada you would have to pay interest on the balance owing. 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, 2025. 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?
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, RRSP contributions 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.
| Annual income (taxable) | Tax brackets | Tax rates | Maximum taxes per bracket | Maximum total tax |
|---|---|---|---|---|
| Up to $55,867 | The first $55,867 | 15% | $8,380.05 | $8,380.05 |
| $55,867 to $111,733 | The next $55,866 | 20.5% | $11,452.53 | $19,832.58 ($8,380.05 + $11,452.53) |
| $111,733 to $173,205 | The next $61,472 | 26% | $15,982.72 | $35,815.30 ($19,832.58 + $15,982.72) |
| $173,205 to $246,752 | The next $73,547 | 29% | $21,328.63 | $57,143.93 ($35,81562 + $21,328.63) |
| Over $246,752 | Over $246,752 | 33% | n/a | n/a |
Thankfully, you have a few options for filing your taxes. You can do them yourself either on paper or with a 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:
Conventional employment income is relatively easy to track—and for the Canada Revenue Agency (CRA) to track you. Your employer(s) is required to send you a T4 slip in the first two months of the year that records your earnings, income tax paid at source, Employment Insurance (EI), Canada Pension Plan (CPP) and other deductions. The same goes for income from government departments and income from accounts or investments held with major financial institutions. But it’s on to you to report other forms of income, such as business or self-employment income and taxable gains from the sale of real estate and other assets.
More to read:
There isn’t a tax credit, per se, for Canadians working from home. However, there are home-office deductions that can be made for some tax-paying Canadians to reduce their taxable income. Beginning in the 2023 tax year, the CRA eliminated the simplified method of calculating at-home office expenses, which allowed Canadians to claim $2 for every day worked at home as a deduction, up to a maximum of $500 for the year. Instead, you must complete the T2200. Find about this form and the home-office claim changes for the 2024 tax year, by reading: Work-from-home tax credit: What Canadians can claim.
The tax code in Canada has become incredibly complex, keeping a large population of bookkeepers, accountants and tax planning professionals busy at this time of year and all year long. Beyond FHSA/RRSP contributions and charitable donations, there is a wide range of deductions on out-of-pocket medical, child care, education-related and moving expenses that you may be able to claim.
More to read:
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 columns Jacks on Tax and Ask MoneySense.
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