2023 Tax Updates:

Information on the Home office Expense Deduction

The Canada Revenue Agency (CRA) continues to make the home office expenses deduction available to Canadians for the 2023 tax year. Employees with home office expenses must use the existing detailed method to calculate their home office expenses deduction.

The temporary flat rate method ceases to apply in 2023.

Employees will have to get Form T2200 completed and signed by their employer

On Going Credits and Updates

Federal, provincial and territorial COVID-19 benefit repayments

Federal, provincial and territorial COVID-19 benefit repayments made after December 31, 2022 can be claimed as a deduction on line 23200 of your 2023 return.

Multigenerational home renovation tax credit (MHRTC)

The MHRTC is a new refundable tax credit that allows an eligible individual to claim certain renovation costs to create a secondary unit within an eligible dwelling so that a qualifying individual can reside with their qualifying relation. If eligible, you can claim up to $50,000 in qualifying expenditures for each qualifying renovation completed up to a maximum credit of $7,500 for each claim you are eligible to make.

Property flipping

Starting January 1, 2023, any gain from the disposition of a housing unit (including a rental property) located in Canada, or a right to acquire a housing unit located in Canada, 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 the property was already considered inventory or the disposition occurred due to, or in anticipation of certain life events.

Canada Worker's Benefit

  • Starting in July 2023 and based on the 2022 taxation year, the CWB will provide advance payments equal to 50% of the CWB across 3 payments under the Advanced Canada workers benefit (ACWB).
  • Anyone who received the CWB in 2022 will receive the advanced payments, there is no need to apply.
  • The ACWB will be divided into three quarterly from July 2023 until January 2024, taxpayers will need to file a income tax and benefit return every year to continue to receive payments.

For more information regarding eligibility please visit the link below:

Disability Support Deduction

For individuals who have an impairment in physical or mental functions and have paid for certain medical expenses can, under certain conditions, claim the disability supports deduction.

If you paid for expenses so that you could:

  • Work
  • Go to School
  • Do research for which you received a grant

Only the person with the disability can claim expenses for this deduction.

Climate Action Incentive

The CAIP includes a rural supplement of 10% of the base amount for residents of small and rural communities.

The base amount for Ontario is:

  • $122 for an individual
  • $61 for a spouse or common-law partner
  • $30.50 per child under 19
  • $61 for the first child in a single-parent family

The rural supplement is:

  • $12.50 for an individual
  • $6.10 for a spouse or common-law partner
  • $3.05 per child under 19
  • $6.10 for the first child in a single-parent family

Teacher and Early childhood educator school supply credit

This measure will allow an employee who is an eligible educator to claim a 25% refundable tax credit based on an amount of up to $1,000 of purchases of eligible teaching supplies by the employee in a taxation year.

Principal Residence Exemption

The principal residence exemption is an income tax benefit that generally provides you an exemption from tax on the capital gain realized when you sell the property that is your principal residence.

Starting with the 2016 tax year, individuals who sell their principal residence will have to report the sale on Schedule 3, Capital Gains of the income tax and benefit return. Reporting will be required for sales that occur on or after January 1, 2023 for the year.

Child Benefit Credit

You must apply for the Canada Child Benefit. A link to this application form can be found on our CRA DOCUMENTS page.

If you delay in filing your tax return or do not file for numerous years, you may be required to re-apply for the Child Benefit by filing out a full application. The CRA will only re pay three years of credit. Any year payments beyond the 3 years will be lost.

Child Care Expense Deductions

The Government has increased the dollar limits of the Child Care Expense Deduction from $7,000 to $8,000 per child under the age of 7; from $4,000 to $5,000 per child aged 7 to 16; from $10,000 to $11,000 per child who are eligible for the disability tax credit.

Provincial Credits and Measures

Support for Individuals

Support for Businesses

The Low-Income Individuals and Families Tax Credit (LIFT)

The non-refundable Low-income Individuals and Families Tax (LIFT) Credit provides up to $850 in Ontario Personal Income.

Tax relief to low-income Ontario taxpayers who have employment income, including those earning minimum wage.

With this credit, a single person who works full-time at minimum wage (earning nearly $30,000) with no other income will receive $850

in Ontario tax relief and pay no Ontario Personal Income Tax. Those who earn more than $30,000 will receive less tax relief.

A tax filer who is a Canadian resident, lived in any province or territory at the beginning of 2023 and who lives in Ontario at the end of the year will be eligible for this credit.

Tax filers who will not receive this tax relief will include those who have:

  • No Ontario Personal Income Tax payable
  • No employment income
  • More than $38,500 in adjusted individual net income
  • More than $68,500 in adjusted family net income, or
  • Spent more than six months in prison during the year

The Ontario Sales Tax credit - Ontario Energy and Property Tax credit, and Northern Energy Credit (currently paid MONTHLY) are combined in a new Ontario Trillium Benefit.

You will have the option to elect to receive this payment in one lump sum in June 2024. If you wish to continue receiving the payment monthly you do not have to make the election. Please inform the tax preparer.

Tax Free Savings Account Conribution Continues

The annual TFSA dollar limit is $6,500 and will be subject to indexation. Contributions to a TFSA and the interest on money borrowed to invest in a TFSA are not tax deductible. The income generated in the TFSA is tax-free when withdrawn. The TFSA Dollar limit increases from $6,500 in 2023 to $7,000 in 2024.

The Volunteer Firefighters Tax credit

Volunteer firefighters performing their volunteer firefighting services for at least 200 hours during the year may claim a new non-refundable tax credit calculated at 15% of $3,000. The credit will replace the exemption of up to $1,000 received from a government, municipality or public authority for those services and that volunteer firefighter will not be able to claim anymore.

The Medical Expense Tax Credit

The $10,000 limit applicable to medical expenses that a taxpayer may consider to calculate the Medical expense tax credit in respect of a dependent relative ( child over 18, grandchild, parent, grandparent, brother, sister, uncle, aunt, niece, or nephew) is eliminated.

Examination Fees

Ancillary fees and charges ( cost of examination materials) and examination fees paid for examinations required to obtain a professional status ( e.g. law bar or C.A. exam) or to be licensed to practice a profession or a trade in Canada are now eligible expenses to claim non-refundable tuition tax credit.

Basic Personal Amount

The new basic personal amount, the spouse, common-law amount, and the eligible dependent amount are increased from $14,398 to $15,000.

Age Credit

The age credit amount is $8,396. The net income level at which the credit starts is $42,335 or less. The age credit will be adjusted accordingly if your income is more than this amount but less than $98,309.

Personal Tax Bracket

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Federal income tax rates for 2023

Tax Rate
Taxable Income Threshold


On the portion of taxable income that is $53,359 or less, plus

20.5% plus

On the portion of taxable income over $53,359 up to $106,717,

26% plus

On the portion of taxable income over $106,717 up to $165,430,

29% plus

On the portion of taxable income over $165,430 up to $235,675,


On the portion of taxable income over $235,675

Ontario income tax rates for 2023

Tax Rate
Taxable Income Threshold


On the portion of taxable income that is $49,231 or less, plus


On the portion of taxable income over $49,231 up to $98,463, plus


On the portion of taxable income over $98,463 up to $150,000, plus


On the portion of taxable income over $150,000 up to $220,000, plus


On the portion of taxable income over $220,000

Home Buyers Plan

The RRSP withdrawal limit for the Home Buyers' Plan is $35,000 for a single owner and $70,000 for two joint owners.

First-time Home Buyers Credit

First-time home buyers purchasing a qualifying home may claim a non-refundable First-Time Home Buyers Credit (FTHBTC) of $750 for the year of acquisition.

To qualify you or your spouse or common law partner acquired a qualifying home and you did not live in another home owned by you or your spouse or common law partner in the year of acquisition or in any of the four preceding years.

First-time Home Savings Account

Starting in 2023, The Government introduced the Tax-Free First Home Savings Account (FHSA), A tax-free vehicle to save up for the purchase of the home. An individual can save up to $40,000 lifetime, and $8,000 in 2023. The withdrawals are tax-deductible on their personal tax return, but the withdrawals must be used to purchase a home. If a taxpayer doesn’t reach the contribution in any year, the remainder is carried forward. For more information please click the link to read more:

For Individuals Entitled to Claim Disability Tax Credit

The same credit may be claimed for a home acquired by or for an individual entitled to claim a disability tax credit, provided it is more accessible or better suited for the individual and also used as a principle residence within one year from date of acquisition.

For further information on non-refundable credits, please follow the link below to Canada Revenue Agency:

The Registered Disability Saving Plan

A Registered Disability Savings Plan (RDSP) is a savings plan that is intended to help parents and others save for the long-term financial security of a person who is eligible for the Disability Tax Credit.

Contributions to an RDSP are not tax deductible and can be made until the end of the year in which the beneficiary turns 59 years of age. Contributions that are withdrawn are not to be included as income for the beneficiary when paid out of a RDSP. However, the Canada disability savings grant, Canada disability savings bond and investment income earned in the plan will be included in the beneficiary’s income for tax purposes when paid out of the RDSP.

Note: The deadline for opening a RDSP, making contributions and applying for the matching grant and the income-tested bond for the 2023 contribution year is December 31st 2023.

The Senior Homeowners' Property Tax Grant

The Senior Homeowners' Property Tax Grant is available to seniors paying at least $500 for property taxes and incomes not exceeding $35,000 for a single and $50,000 for a couple, is increased from $250 to $500. This grant is eliminated if the income reaches $50,000 for a single or $60,000 for a couple.

Ontario Child Benefit (OCB) Program

The Ontario Child Benefit program will go to low-income families with children under 18 years of age, those working and those on social assistance.

OCB payments are delivered with the CCTB in a single monthly payment. Under the OCB, you may be eligible to receive up to $133.91 per month for each child under 18 years of age. If your adjusted family net income is above $24,542, you may receive a partial benefit.

You can get more information on the OCB program at

RRSP Contribution and The Benefits of RRSP's

Deadline is February 29, 2024

RRSP'S continue to be one of the best tax shelters the average tax payer can take advantage of. Each $1000 contribution could be worth up to $430 in tax savings.

The maximum dollar amount you can contribute to your RRSP is limited to 18% of your previous years earned income, up to an annual limit.

You can find your RRSP deduction limit on your Notice of Assessment for the previous tax year or by calling:
TIPS Line at CRA: 1-800-959-267-6999

RRSP Deduction: Age Limit Change

The age limit to contribute to an RRSP has been increased from 69 to 71 years of age. The taxpayer can contribute to a spousal RRSP until the end of the year in which the spouse reaches 71 years of age and claim the deduction for these contributions.

Deduction for tools (tradespersons and apprentice mechanics)

Starting in 2023, the maximum employment deduction for tradespersons’ eligible tools has increased from $500 to $1,000. As a result, the threshold for expenses eligible for the apprentice mechanics tools deduction has also changed.

Charitable Donations

Claim donations for up to five (5) years. Bring any old, unused receipts.

2022 Notice of Assessment

Please bring in your Notice of Assessment, Revenue Canada may have important information to tell us about your account.

Elected Split-Pension Amount

Starting in 2007, a taxpayer can split his or her pension income with his or her spouse. Pension splitting can reduce tax payable.

Authorizing Us as Your Representitive

As your representative we are able to handle reviews with CRA and adjust your file should you omit any information or receipts. When you sign the Authorizing a Representative form, you allow us to represent you in dealings with CRA. CRA will confirm this authorization with a letter once processed.