Six notable changes to taxes this year

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Filing taxes would be complicated enough if the rules around them didn’t change every year. Here are some of the biggest changes this year:

Ontario staycation benefit

This one is only for Ontarians, and allows people to claim 20 per cent of their costs for an Ontario hotel, cottage or campground, up to a maximum of $1,000 as an individual or $2,000 as a family.

Labour mobility deduction

Tradespeople, apprentices and employees in construction are now able to claim lodging and meal expenses that they’ve paid to earn income at temporary work locations.

RRSP and TFSA contribution limits

People looking to max out their tax-sheltered investments should be aware that you’re able to put away more money into registered retirement savings plans and tax-free savings accounts. The RRSP limit was raised to $29,210 from $27,830 for 2022. The TFSA limit for 2023 has been raised to $6,500 from $6,000.

First-time home buyers’ credit

This credit has been mentioned in other articles, but it’s worth pointing out again because it’s new and because the size of the deduction is so large. You can deduct $10,000 off your income for a qualifying home purchase, which can lead to enormous tax savings.

Air quality improvement credit

People who are self-employed or members of a partnership are now able to claim a tax credit equal to 25 per cent of their total expenses to improve ventilation or air quality at their place of business.

Changing tax brackets

Tax brackets are set to tax Canadians progressively more as they earn more. However, these brackets always change, and this year they’re increasing again as the cost of living increases. The basic personal amount, a non-refundable credit given to all Canadians, has also been upped to $14,398 for 2022, compared with $13,808 in 2021. The changes equate to more tax relief across the board for Canadians.

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