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2022 Personal Income Tax Return Update

Friday February 17, 2023

The 2022 personal income tax filing deadline is May 1,2023. The filing deadline for self-employed individuals and their spouses (including HST returns) is June 15th. The late filing of your tax return will result in a CRA penalty of 5% of any balance owing, plus an additional 1% for every month your return is late, up to a total of 12 months. All outstanding income tax and HST payments are due on or before May 1.

A checklist to assist you in gathering and summarizing your 2022 tax information can be accessed here.

Here are some things to keep in mind as you gather information for your 2022 personal income tax return:

Immediate Expensing for Self-Employed Individuals
If you carried on an unincorporated business and acquired capital property in 2022, you may be eligible to claim a 100% deduction of the expenditure this year. The immediate expensing rules allow eligible individuals and partnerships to claim a full deduction on up to $1.5 million of capital property acquired on or after January 1, 2022 that is available for use before 2025. Certain capital cost allowance classes are not eligible for the enhanced deduction.

Ontario Staycation Credit
This one-time, refundable tax credit allows Ontario taxpayers to claim 20% of accommodation expenses in an Ontario hotel, cottage or campground during 2022, up to a maximum of $1,000 for individuals and $2,000 for families. This credit is only available for 2022.

Automobile Income Tax Deduction Limits
The automobile allowance rates paid per kilometer by employers to employees who use their personal vehicle for work have increased as follows:

2021 2022 2023
First 5,000 kilometres driven $ 0.59 $ 0.61 $ 0.68
Kilometres driven thereafter $ 0.53 $ 0.55 $ 0.62


The ceiling for capital cost allowances (“CCA”) for the following new and used vehicles purchased in the year have increased as follows (before tax):

2021 2022 2023
Class 10.1 passenger vehicles $ 30,000 $ 34,000 $ 36,000
Class 54 zero-emission passenger vehicles $ 55,000 $ 59,000 $ 61,000


Deductible leasing costs have increased from $800 per month (before tax) in 2021 to $900 per month in 2022. This is set to increase to $950 in 2023.

First-Time Home Buyers’ Tax Credit
Eligible first-time home buyers can claim a $10,000 non-refundable income tax credit (up from $5,000 in 2021), resulting in tax savings of up to $1,500.

Air Quality Improvement Tax Credit for small businesses
This temporary, refundable tax credit allows eligible owner-managed businesses (including sole proprietorships) to claim 25% of qualifying expenditures between September 1, 2021, and December 31, 2022 to improve ventilation or air quality at their place of business. Generally, qualifying expenditures must be intended to increase outdoor air intake or improve air cleaning and are subject to a maximum of $10,000 per location and $50,000 across all locations. Please Note: If you take advantage of this credit, the amount received is considered government assistance and will generally need to be included as income in the taxation year in which it is received (in this case, the taxation year in which the credit is claimed). Alternatively, you may elect to reduce the capital cost of the depreciable property by the amount that would otherwise be included in income.

Ontario Seniors Care at Home Tax Credit
The Ontario Seniors Care at Home Tax credit is a refundable personal income tax credit to help seniors with eligible medical expenses, including expenses that support aging at home. The credit is equal to 25% of eligible medical expenses up to $6,000, for a maximum credit of $1,500.

Underused Housing Tax (UHT)
The UHT is a tax on vacant or underused residential housing in Canada that came into effect on January 1, 2022. Please refer to our UHT Insight for details.

Future Year Updates:

Residential Property Flipping Rule
Effective January 1, 2023, residential properties that are bought and sold within one year (subject to exceptions) will be denied capital gains treatment and the Principal Residence Exemption. Exceptions include life events such as the death of the individual or related party, an addition to the household, separation or divorce, a threat to personal safety, serious illness or disability, work relocation or termination, insolvency, natural disaster, or expropriation of the home.

Multigenerational Home Renovation Tax Credit
Effective January 1, 2023, this credit provides a 15% tax refund on up to $50,000 of expenses related to building a secondary suite for a family member who is a senior or an adult with a disability, to a maximum credit of $7,500.

First Home Savings Account
Effective April 1, 2023, if you are a prospective first-time home buyer, you can contribute up to $40,000 over your lifetime and up to $8,000 for any one year (including 2023) to a First Home Saving Account. You would be able to claim an income tax deduction for contributions made in a particular taxation year and withdraw the funds tax-free to put towards the purchase of your first home. Unlike the RRSP rules, the carryover of the unused annual contribution limit is limited to one year, and the limit applies to contributions made within the calendar year.

The following deductions from previous years are still available for 2022. Please refer to out 2021 Tax Update for details:

  • Home Office Expense – Temporary COVID-19 Deduction
  • COVID-19 Related Relief Benefits
  • Climate Action Incentive
  • Home Accessibility Tax Credit (HATC)
  • Ontario Seniors’ Home Safety (“SHS”) Tax Credit
  • Ontario Childcare Access and Relief from Expenses (“CARE”) Tax Credit
  • Ontario Jobs Training Tax Credit
  • Digital Subscription Tax Credit
  • Canada Training Credit (“CTC”)
  • Home Buyers’ Plan Withdrawal
  • Reporting the sale of a principal residence
  • Lifetime Capital Gains Exemption (“LCGE”)
  • Foreign reporting

S+C Partners is committed to helping you
Our dedicated tax team is here to support you. Please call us at 905-821-9215 or email us at if you have any questions or require any assistance.

A checklist to assist you in gathering and summarizing your 2022 tax information can be accessed here.