OTTAWA, ON: The Canadian Taxpayers Federation released its annual New Year’s Tax Changes report today to highlight major tax changes in 2024.

“Tax hikes will give Canadians a hangover in the new year,” said Franco Terrazzano, Federal Director of the CTF. “Canadians need help with the rising cost of living, but the feds will be reaching deeper into our pockets with major tax hikes in 2024.”

Payroll taxes: The federal government is raising the mandatory Canada Pension Plan and Employment Insurance contributions in 2024. These payroll tax increases will cost a worker up to $347 next year. 

For workers making $73,200 or more, federal payroll taxes (CPP and EI tax) will cost them $5,104 in 2024. Their employer will also be forced to pay $5,524.

Carbon tax: The federal carbon tax is increasing to more than 17 cents per litre of gas and 15 cents per cubic metre of natural gas on Apr. 1, 2024. The carbon tax will cost the average household between $377 and $911in 2024-25, even after the rebates, according to the Parliamentary Budget Officer. 

Alcohol escalator tax: Alcohol taxes will increase by 4.7 per cent on Apr. 1, 2024. Taxes already account for about half of the price of beer, 65 per cent of the price of wine and more than three quarters of the price of spirits. This tax hike will cost Canadians almost $100 million next year. 

“Canadians pay too much tax because the government wastes too much money,” Terrazzano said. “Canadians need relief now, and that means Prime Minister Justin Trudeau must drop his plans to raises taxes in 2024.”

You can find the CTF’s New Year’s Tax Changes report here.