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Domestic Gross-Up Tax Rates v.23.6 released 30 November 2023

Click for full PDF release notes Updates Updates include calculation and rate changes to reflect current tax law resulting from inflation adjustments and legislative changes. Updates are effective Jan

Updated over 2 weeks ago

Updates

Updates include calculation and rate changes to reflect current tax law resulting from inflation adjustments and legislative changes. Updates are effective January 1 unless stated otherwise. Amounts are given in CAD or USD.

2023 - Canada

Quebec

Corrected the tax amounts for the statute tax calculation method. Prior calculations may result in a potential overstatement of tax costs.

2023 - United States

California

Increased the following for all filing status based on CPI changes. Amounts apply to single employees:

  • Bracket thresholds. The threshold for the 12.3% top bracket increased by $20,995 to $698,270. An additional 1% tax is imposed on income exceeding $1 million.

  • Standard deductions and exemption credits.

  • Phaseout threshold for itemized deductions and exemption credits.

Illinois

Decreased the standard exemption by $200 to $2,425.

Kentucky

For Carroll County, corrected the tax amounts for the statute and supplemental tax calculation methods. Prior calculations may result in a potential overstatement of tax costs.

North Dakota

Corrected the tax amounts for the statute tax calculation method. Prior calculations may result in a potential understatement of tax costs.

Ohio

Corrected the tax table as follows:

  • Decreased the threshold for the 2.75% bracket by $20,500 to $26,050.

  • Increased the threshold for the 3.688% bracket by $7,850 to $100,000.

Vermont

Corrected the tax amounts for the supplemental tax calculation method. Prior calculations may result in a potential understatement of tax costs.

2024 - Canada

Increased the following:

Income Tax: Based on CPI changes:

  • Tax bracket thresholds. The threshold for the 37% top bracket increased by $11,076 to $246,752.

  • Minimum personal and spouse credits by $95 to $2,123.

  • Employment credit by $10 to $215.

Social Security:

  • Pension plan (CPP) wage ceiling by $1,950 to $68,500.

  • Added a 4% additional CPP contribution for income between $68,500 up to $73,200.

  • Employment insurance:

    • Employee rate by 0.03% to 1.66%.

    • Wage ceiling by $1,700 to $63,200.

Alberta

Increased the following based on CPI changes:

  • Tax bracket thresholds. The threshold for 15% top bracket increased by $14,343 to $355,845.

  • Personal, spouse, and dependent amounts by $89 to $2,189.

British Columbia

Income Tax: Increased the following based on CPI changes:

  • Tax bracket thresholds. The threshold for the 20.5% top bracket increased by $12,011 to $252,669.

  • Personal credit by $30 to $636.

  • Spouse and dependent credits by $26 to $545.

  • Low Income Tax Reduction (LITR) threshold by $1,141 to $24,320.

  • LITR amount by $25 to $546.

Manitoba

Increased the tax bracket thresholds. The threshold for the 17.4% top bracket increased by $20,410 to $100,000.

New Brunswick

Increased the following based on CPI changes:

  • Tax bracket thresholds. The threshold for the 19.5% top rate increased by $8,314 to $185,070.

  • Personal credit by $55 to $1,226.

  • Spouse and dependent credits by $43 to $961.

  • Low income tax reduction amounts.

Newfoundland and Labrador

Increased the following based on CPI changes:

  • Tax bracket thresholds. The threshold for the 21.8% top bracket increased by $46,000 to $1.14 million.

  • Personal credit by $38 to $941.

  • Spouse and dependent credits by $31 to $769.

  • Low income tax reduction amounts.

Northwest Territories

Increased the following based on CPI changes:

  • Tax bracket thresholds. The threshold for the 14.05% top bracket increased by $7,386 to $164,525.

  • Personal and dependent credits by $50 to $1,112.

Nunavut

Increased the following based on CPI changes:

  • Tax bracket thresholds. The threshold for the 11.5% top bracket increased by $7,775 to $173,204.

  • Personal and dependent amounts by $34 to $751.

Ontario

Increased the following based on CPI changes:

  • Two lowest tax bracket thresholds. The threshold for the 13.16% top bracket remains $220,000.

  • Surtax bracket thresholds.

  • Personal credit by $27 to $626.

  • Spouse and dependent credits by $23 to $531.

  • Qualified Child amount by $22 to $528.

  • Tax reduction amount by $12 to $286.

Prince Edward Island

Made the following changes:

  • Added two new upper tax brackets. The top bracket rate increased by 2.05% to 18.75% on income exceeding $140,000.

  • Decreased rates on lower three tax brackets.

  • Increased personal credit by $145 to $1,303.

  • Increased spouse and dependent credits by $184 to $1,106.

Quebec

Increased the following:
Income Tax: Based on CPI changes:

  • Tax bracket thresholds. The threshold for the top rate of 25.75% increased by $6,095 to $126,000.

  • Personal and spouse credits by $122 to $2,528.

  • Maximum deduction for workers by $70 to $1,385.

Social Security:

  • Pension plan (QPP) wage ceiling by $1,950 to $68,500.

  • Added a 4% additional QPP contribution for income between $68,500 and $73,200.

  • Employment insurance:

    • Employee rate by 0.05% to 1.32%.

    • Wage ceiling by $1,700 to $63,200.

Saskatchewan

Increased the following:

  • Tax bracket thresholds. The threshold for the 14.5% top bracket increased by $6,656 to $148,777.

  • Personal, spouse, and dependent credits by $87 to $1,942.

  • Child credit by $48 to $737.

Yukon

Increased the tax bracket thresholds for the first three brackets based on CPI changes. The threshold for the 15% top bracket remains $500,000.

2024 - United States

Income Tax: Increased the following for all filing status based on CPI changes. Amounts apply to single employees:

  • Tax bracket thresholds. The threshold for the 37% top bracket increased by $31,225 to $609,350.

  • Standard deduction. The deduction increased by $750 to $14,600.

  • Alternative minimum tax thresholds, exemptions, and exemption phaseout thresholds.

Social Tax: Increased the OASDI wage ceiling by $8,400 to $168,600.

This amount is also used as a wage ceiling for local taxes in eight Kentucky municipalities and Paid Family and Medical Leave contributions in Colorado, Connecticut, Massachusetts, and Washington.

Arkansas

Decreased the following:

  • Statute top bracket rate by 0.3% to 4.4%.

  • Supplemental rate by 0.5% to 4.4%.

  • Maximum bracket adjustment amount by $50 to $380 for employees with income over $90,800.

California

Changed the following for State Disability Insurance:

  • Increased the rate by 0.2% to 1.1%.

  • Removed the wage ceiling.

Connecticut

Made the following changes:

  • Decreased the supplemental and statute rates for the first and second tax brackets by 1% to 2% and 0.5% to 4.5%, respectively.

  • Adjusted tax recapture amounts, thresholds, and maximums.

Georgia

Made the following changes:

  • Replaced the previous six-tier progressive table with a flat rate of 5.49%.

  • Increased standard deductions for all filing status. The deduction increased by $6,600 to $12,000 for single employees.

  • Removed personal exemption.

Iowa

Made the following changes to the tax table for all filings status:

  • Removed the 6% bracket.

  • Increased bracket thresholds. The threshold for the new 5.7% top bracket is applicable to income over $31,050 for single employees.

Kentucky

Made the following changes:

  • Decreased the tax rate by 0.5% to 4%.

  • Increased the standard deduction by $180 to $3,160.

Maine

Increased the following for all filing status based on CPI changes. Amounts apply to single employees:

  • Bracket thresholds. The threshold for the 7.15% top bracket increased by $3,800 to $61,850.

  • Personal exemption by $350 to $5,050.

  • Personal exemption phaseout thresholds by $19,900 to $325,000.

  • Deduction phaseout threshold by $5,950 to $97,450.

Massachusetts

Increased the threshold for the 9% top bracket by $53,750 to $1,053,750, based on CPI changes.
Increased the following for Family and Medical Leave:

  • Wage ceiling by $8,400 to $168,600

  • For companies with more than 25 employees:

    • Rate by 0.12% to 0.44%

    • Maximum tax amount by $233 to $742

  • For companies with fewer than 25 employees:

    • Rate by 0.14% to 0.46%

    • Maximum tax amount by $267 to $776.

Minnesota

Increased the following based on CPI changes:

  • Tax bracket thresholds for all filing status. The threshold for the 9.85% top bracket for single employees increased by $9,900 to $193,240.

  • Dependent exemption by $250 to $5,050.

  • Deduction and dependent exemption phaseout thresholds. The thresholds increased by $11,900 to $232,550 for single employees.

Mississippi

Decreased the top bracket statute rate and supplemental flat rate by 0.3% to 4.7%. The statute rate remains applicable to income over $10,000.

Missouri

Made the following changes:

  • Decreased the statute top bracket rate and the supplemental rate by 0.15% to 4.8%.

  • Increased the tax bracket thresholds based on CPI changes. The threshold for the 4.8% top bracket increased by $462 to $8,911.

Nebraska

Made the following changes:

  • Decreased the top bracket rate by 0.8% to 5.84%, applicable to income above $37,670 for single employees.

  • Increased the following for all filing status based on CPI changes. Amounts apply to single employees:

    • Tax bracket thresholds. The threshold for the 5.84% top bracket increased by $1,940 to $37,670.

    • Standard deduction by $450 to $8,350.

    • Exemption credit by $9 to $166.

New Jersey

Increased the following:

  • Family Leave Insurance tax rate by 0.03% to 0.09%, increased the wage ceiling by $4,600 to $156,800.

  • Unemployment insurance wage ceiling by $1,200 to $42,300.

New York

Made the following changes to Paid Family Medical Leave:

  • Increased the wage ceiling by $1,557 to $89,343.

  • Decreased the rate by 0.082% to 0.373%.

North Carolina

Decreased the following tax rates:

  • Statute by 0.25% to 4.5%.

  • Supplemental by 0.25% to 4.6%.

North Dakota

Increased the tax bracket thresholds based on CPI changes for all filing status. The threshold for the 2.5% top bracket increased by $12,150 to $238,125 for single employees.

Ohio

Removed the 3.75% top bracket. The new 3.5% top bracket rate applies to income above $100,000.

Oklahoma

Increased the threshold for the 4.75% top bracket by $2,200 to $14,400 for employees filing jointly, as head of household, or as a qualifying widower.

Oregon

Increased the following for all filing status. Amounts apply to single employees:

  • Tax bracket thresholds. The threshold for the 9.9% top bracket remains $125,000.

  • Standard deduction. The deduction increased by $140 to $2,745.

  • Exemption credit by $13 to $249.

  • Federal tax deduction maximum amounts by $450 to $8,250.

  • Paid Leave wage ceiling by $35,700 to $168,600, to conform to the federal OASDI ceiling.

Rhode Island

Increased the following for all filing status based on CPI changes. Amounts apply to single employees:

  • Tax bracket thresholds. The threshold for the 5.99% top bracket increased by $9,100 to $176,050.

  • Standard deduction. The deduction increased by $550 to $10,550.

  • Personal exemption by $250 to $4,950.

  • Personal exemption phaseout threshold and step by $12,700 to $246,450 and $350 to $7,050, respectively.

South Carolina

Increased the following based on CPI changes:

  • Tax bracket thresholds. The threshold for the 6.5% top bracket increased by $930 to $18,100.

  • Dependent exemption by $260 to $5,000.

Utah

Increased the following based on CPI changes:

  • Dependent exemption by $105 to $2,046.

  • Credit phaseout thresholds for all filing status. The threshold increased by $910 to $17,652 for single employees.

Vermont

Made the following changes:

  • Increased the following based on CPI changes for all filing status. Amounts apply to single employees:

  • Tax bracket thresholds. The threshold for the 8.75% top bracket increased by $12,450 to $242,000.

  • Personal exemption and standard deductions. The exemption and deduction increased by $650 to $5,150 and by $950 to $7,450, respectively.

  • Added Child Care Contribution for employees at 0.11%, effective July 1, 2024. To calculate the contribution, select "US-VT Child Care Contrib EQVT0001" from the Local Authorities list in the Tax Authority input tab.

Virginia

Increased the standard deduction for all filing status. The amount increased by $500 to $8,500 for single employees.

Washington

Decreased the Paid Family and Medical Leave rate by 0.05% to 0.53%.

Wisconsin

Increased the following based on CPI changes for all filing status. Amounts apply to single employees:

  • Tax bracket thresholds. The threshold for the 7.65% top bracket increased by $11,140 to $315,310.

  • Standard deductions and phaseout thresholds. The deduction and phaseout threshold increased by $470 to $13,230 and by $670 to $19,070, respectively.

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