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:
Working from home tax credit
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. New for 2023, though, is the elimination of 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, the T2200 must be completed. Find about this form and the home-office claim changes for the 2023 tax year, by reading: Work-from-home tax credit: What Canadians can claim 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.
