Canada Releases 2023 Payroll Deductions Formulas

Canada’s 2023 payroll deductions formulas, including calculations for federal and provincial or territorial income taxes, were released Nov. 18 by the Canada Revenue Agency.

The 2023 version of Guide T4127, Payroll Deductions Formulas, incorporates several changes to provincial or territorial income taxes. Alberta, one of the provinces that did not index its income tax brackets each year, is to resume indexing subject to legislation passing, the CRA said; however, the new brackets are included in the formulas because the agency generally includes new legislation even if not finalized.

Nova Scotia and Prince Edward Island are the remaining jurisdictions that ...