Federal & Provincial Tax Credits

If you need to know the amount of tax to deduct from an individual's employment income, check out our handy guide for determining federal and provincial personal tax credits.

What is TD1?

TD1, Personal Tax Credits Return, is a form used to determine the amount of tax to be deducted from an individual's employment income or other income, such as pension income. There are federal and provincial/territorial TD1 forms.

Individuals complete these forms and provide them to their employer who keeps the completed documents with their records.

Who should complete the TD1 form?

Individuals who meet one of the following criteria should complete the form and provide it to their employer:

  • have a new employer or payer
  • want to change amounts from previous claimed
  • want to claim the deduction for living in a prescribed zone
  • want to increase the amount of tax deducted at source

Individuals do not have to complete a new TD1 every year unless there is a change to their federal, provincial or territorial personal tax credit amounts.

Federal TD1 Changes for 2023

The following table provides a list of federal TD1 changes for 2023:

Federal TD1
2023
2022
Basic personal*
$15,000*
$14,398
Child amount (for children under 18)
$2,499
$2,350
Age amount
$8,396
$7,898
Pension income amount
$2,000
$2,000
Disability amount
$9,428
$8,870
Spouse or common-law partner amount
$15,000
$14,398
Amount for eligible dependent
$15,000
$14,398
Caregiver amount or infirm amount for dependent 18+
$7,999
$7,525

*For 2023, employers are to use the maximum federal basic personal amount (BPAF) of $15,000 for all employees unless the employee provides a new Form TD1. If the BPAF formula was previously implemented on your payroll system, you can continue to use it.

Provincial TD1 Changes for 2023

The following table provides a list of provincial TD1 changes for 2023 as well as as links to the provincial TD1 form:

Basic Personal Amount
2023
2022
Alberta (form)
$21,003
$19,369
British Columbia (form)
$11,981
$11,302
Manitoba (form)
$10,855
$10,145
New Brunswick (form)
$12,458
$10,817
Newfoundland and Labrador (form)
$10,382
$9,803
Northwest Territories (form)
$16,593
$15,609
Nova Scotia (form)
$11,481**
$11,481
Nunavut (form)
$17,925
$16,862
Ontario (form)
$11,865
$11,141
Prince Edward Island (form)
$12,000
$11,250
Québec (EN) (FR)
$17,183
$16,143
Saskatchewan (form)
$17,661
$16,615
Yukon (form)
$15,000***
$14,398

**For 2023, employers are to use the maximum Nova Scotia basic personal amount (BPANS) of $11,481 for all employees unless the employee provides a new Form TD1. If the BPANS formula was previously implemented on your payroll system, you can continue to use it.

***For 2023, employers are to use the maximum Yukon basic personal amount (BPAYT) of $15,000 for all employees unless the employee provides a new Form TD1. If the BPAYT formula was previously implemented on your payroll system, you can continue to use it.

Additional Resources

Disclaimer: The information provided in this guide is for informational purposes only. It is not professional financial or legal advice nor is it intended to be a substitute therefore. Where there are discrepancies between the guide and information provided by the federal government, provincial government, or the Canadian Revenue Agency (CRA) or Revenu Québec, defer to the guidelines provided by the governing agencies.

Helping mid-size Canadian companies get there faster

If you need an integrated time and pay solution that can handle complexity now and as you grow, we’ve got you covered. We were built for mid-size businesses just like yours.