![]() The exemption is currently $40,000, but will rise to approximately $173,000 in 2024.īecause of this increased exemption, very few Canadians will pay AMT under the 2024 rules, and even high-income individuals won’t pay any AMT if their only source of income is fully taxable employment, professional or business income.Ĭurrently, most common deductions are permitted in calculating the adjusted taxable income for AMT. To ensure that lower-income taxpayers aren’t caught by the AMT, there is an AMT exemption that is deducted from adjusted taxable income. For 2024, the AMT rate will increase to 20.5 per cent. The current AMT rules apply a flat 15-per-cent tax rate to this adjusted taxable income. Under the AMT system, taxable income is recalculated using only deductions, exemptions and credits that are permitted for AMT purposes, which is called “adjusted taxable income.” Under the regular tax calculation, taxable income is calculated using deductions, exemptions and credits that are likely familiar to you. The government estimated the changes to the AMT rules would generate $3 billion in revenues over the five-year period starting in 2024. In this year’s federal budget, the government announced that “to better target the AMT to high-income individuals,” several changes would be made to the rules, beginning in 2024. ![]() This advertisement has not loaded yet, but your article continues below.
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