2024 has changes unfold in the key financial avenues, of savings, investments, and tax planning. Let's delve into the updates in Registered Retirement Savings Plans (RRSPs), Tax-Free Savings Accounts (TFSAs), First Home Savings Accounts, and Federal Tax Brackets, including the dollar changes that come with them.
In 2024, RRSP contribution limits have increased, allowing individuals to invest up to $29,210, up from the previous limit of $27,830. This adjustment offers Canadians who manage their cash opportunities to build their retirement nest eggs while enjoying tax-deferred growth on their investments.
TFSAs also see a boost in contribution room, with the annual limit rising to $7,000, up from $6,500 in previous years. This enables cash savvy Canadians to shelter more of their savings and investments from taxation, fostering greater financial flexibility and security.
The First Home Savings Account, designed to aid prospective homeowners was introduced in 2023. Canadians can now contribute up to $10,000 annually to this account, accumulating funds tax-free towards their first home purchase.
The tax brackets were raised in 2024 with the tax rate in each bracket remaining the same.
| Tax Bracket 2024 | Tax Bracket 2023 |
| $55,867 or less | $53,359 or less |
| $55,867.01 to $111,733 | $53,359.01 to $106,717 |
| $111,733.01 to $173,205 | $106,717.01 to $165,430 |
| $173,205.01 to $246,752 | $165,430.01 to $235,675 |
| $246,752.01 and up | $235,675.01 and up |
As you navigate these adjustments, stay informed and leverage the expertise of your financial advisor and your cash management strategist.
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Stay healthy, Greg Libbrecht and the team at Platinum Business Services