Tax season: A slight increase that you hardly notice

Tax season is in full swing, and this year the Canadian Taxpayers Federation (CCF) has noted an increase in income taxes.

In a report issued in December 2023, the FCC noted that the majority of Canadians will have to pay more income taxes.

This increase ranges from an additional $9, for an annual income less than or equal to $30,000, to $347, for an annual income of $80,000 or more.

“Overall, it probably won't affect you much, because it doesn't seem like they're raising taxes by a crazy amount. However, with Canadian debt levels, everyone's budgets are already stretched,” personal finance expert Barry Choi explained to Global News, adding that “every penny counts.” The importance of these days.

With the Government of Canada increasing taxes, which may seem minimal to some, the Canadian Taxpayers Federation has identified 51 national governments that have provided tax breaks during the pandemic or in an attempt to ease the burden of inflation. These governments include more than half of the G7 and G20 countries, in addition to two-thirds of the Organization for Economic Co-operation and Development (OECD) countries. Canada is a member of all three organizations.

Changes highlighted in the FCC's annual report also include increased taxes on alcohol and carbon, an increase in the cap on employment insurance premiums, and a second increase in the federally mandated Canada Pension Plan (CPP).