Tax updates for individuals in Canada in October 2023
New Canada Dental Benefit
The Canada Dental Benefit is a new program that provides financial support to eligible families with children under 12 years old who do not have access to private dental insurance. The benefit is available to families with an adjusted family net income of less than $90,000 in 2021.
Grocery Rebate
The government has announced a one-time grocery rebate to help Canadians cope with the rising cost of food. The rebate will be paid to eligible individuals as an increase to their Goods and Services Tax Credit (GSTC) payment.
Increased TFSA contribution limit
The TFSA contribution limit has been increased to $6,500 for 2023. This means that Canadians can now contribute up to $6,500 to their TFSAs per year, without having to pay taxes on the investment income they earn.
New tax credit for adding a secondary unit
A new tax credit is available for homeowners who add a secondary unit to their homes. The credit can be used to offset the costs of renovations and construction.
Tax relief for Canadians affected by wildfires in British Columbia and the Northwest Territories
The CRA has announced that Canadians affected by the wildfires in British Columbia and the Northwest Territories will be eligible for a number of tax relief measures. These measures include:
- Extending the deadline to file income tax returns and make payments
- Waiving penalties and interest on outstanding balances
- Providing financial assistance to help cover the costs of rebuilding homes and businesses
