New tax increases in 2023, according to the Canadian Taxpayers Federation

In addition to inflation and the rise in interest rates which are already weighing heavily on the wallets of Quebecers, increases in payroll taxes are to be expected in 2023, according to the annual report of the Canadian Taxpayers Federation (CTF).

New tax increases in 2023, according to the Canadian Taxpayers Federation

In addition to inflation and the rise in interest rates which are already weighing heavily on the wallets of Quebecers, increases in payroll taxes are to be expected in 2023, according to the annual report of the Canadian Taxpayers Federation (CTF).

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The report entitled "New Year's Tax Changes" and published on Wednesday describes the main federal and provincial tax changes planned for 2023. It includes tax increases or tax changes related to the pension or annuity plan.

Among those changes, Canadians earning $66,600 or more will have to pay $255 more in Canada Pension Plan (CPP) tax in 2023. Their employers will also pay $255 more.

The federal carbon tax will increase again to 14 cents per liter of gasoline starting April 1, 2023. So will alcohol taxes which will increase by 6.3% on the same date. . Alcohol taxes are already about half the price of beer, 65% of the price of wine and more than three-quarters of the price of spirits, according to the FCC report.

In Quebec, the EI tax rate and the maximum amount of insurable earnings will both increase in 2023. Employees will pay $781 and employers $1093 to Quebec Employment Insurance, an increase $57 for employees and $80 for employers.

The Québec Pension Plan (QPP) tax rate will also increase in 2023. Thus, employees and employers will each pay $3,930 to the QPP in 2023, which represents an increase of $154 compared to 2022.

"Quebec taxpayers are struggling to fill their grocery cart or fill up at the gas station, but the government is only making it worse by raising taxes," said Nicolas Gagnon, Quebec director for the FCC, by press release.

“While some countries reduce their taxes, Ottawa sticks Canadians with higher bills,” said Franco Terrazzano, federal director for the FCC.

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