Updated Checked by the Tax-Services.ca editorial team How we check
The federal income tax for 2023 ran on five rates, from 15% at the bottom to 33% at the top, and the first bracket ended at $53,359. If you’re looking at a 2023 return today, whether it’s unfiled or filed and wrong, the year is still open to you, and the cost of waiting is easier to work out than most people think.
What were the income tax rates for 2023?
These are the federal brackets the CRA lists for the 2023 return. Provincial tax comes on top and we haven’t checked the 2023 provincial tables, so leave those for your province’s own page.
| Taxable income | Federal rate |
|---|---|
| Up to $53,359 | 15% |
| $53,359 to $106,717 | 20.5% |
| $106,717 to $165,430 | 26% |
| $165,430 to $235,675 | 29% |
| Over $235,675 | 33% |
Compare that with 2026, where the first rate is 14% and the first bracket ends at $58,523. The brackets move up with inflation, so a 2023 income of $60,000 doesn’t sit where a 2026 income of $60,000 does.
Each rate applies only to the slice of income inside its bracket. Crossing $53,359 doesn’t reprice your whole income at 20.5%, just the dollars above that line. People get this wrong often enough that it’s worth saying twice.
What does 2023 federal tax look like on $60,000?
Take $60,000 of taxable income. The first $53,359 at 15% is $8,003.85. The remaining $6,641 at 20.5% is $1,361.41. That makes $9,365.26 before any credits.
Notice the words “before credits”. Your basic personal amount, CPP and EI contributions and any other credit come off that figure, so your real bill is lower. We can’t give you the credit amounts for 2023 here because we didn’t confirm them, and that’s why this is an illustration of how brackets stack, not a bill.
One more thing about the tools on this site. They run on 2026 rules. The income tax calculator gives you a 2026 answer, so it won’t reproduce a 2023 return to the dollar. Use it to see what a similar income costs now, and use your 2023 slips and the CRA tables for the old year.
Can I still file a 2023 return?
Yes. The CRA’s certified software page says NETFILE is open until Friday, January 29, 2027, and that it accepts first returns for tax years 2018 to 2025. So a 2023 return can go in online through certified software, with no paper needed.
Should you rush? If you’re owed a refund, there’s no penalty for a late return, because the penalty is worked out on your unpaid balance. But the refund sits with the CRA, and benefits such as the GST/HST credit and the Canada child benefit depend on filed returns. Try the tax refund calculator to see whether one is likely.
If you owe, file first and worry about payment second. According to the CRA’s late-filing penalty page, the penalty is 5% of your balance owing plus 1% for each full month late, up to 12 months. The CRA also charges interest on unpaid tax from the day after the due date, compounded daily. A higher penalty applies if you were penalized and asked to file in recent years, so read that page before you assume the basic rate.
What if my 2023 return is already filed and wrong?
Don’t file a second return. Wait for the notice of assessment, then use Change my return in your CRA account, or ReFILE in certified software. The online route takes about two weeks by the CRA’s own timing. A paper T1-ADJ form takes around 19 weeks, and longer for complicated cases.
ReFILE can’t be used for returns before 2021, so 2023 is fine. And a refund can’t be issued for a change that goes back beyond 10 calendar years. Missed a credit? Look at what you might have skipped in the tax credits calculator, which is federal only and uses 2026 amounts, then find the 2023 amounts on the CRA form.
What should you gather before you start?
Pull your 2023 slips first: T4s, T5s, tuition and RRSP receipts. Your CRA account lists many of them, which saves a hunt through old email. Then find your notice of assessment from 2022, if you filed that year, because carry-forward amounts such as unused tuition show up there. If a slip is gone for good, ask the issuer for a copy rather than guessing the figure.
Is it worth filing if you think you owe nothing?
Usually yes. A return is how the CRA works out credits and benefits for the following year, and an old gap can hold up money you were entitled to. A return with no tax owing costs you no penalty, so the only real cost is the time it takes. If you were on a low income in 2023, check the benefits you may have missed before you decide it isn’t worth the effort.
Mistakes that cost people money on an old return
The common one is grabbing today’s brackets. Another is forgetting a slip: the CRA already has your T4s and T5s, and a mismatch triggers a reassessment. Losing a receipt for a deduction is a hassle you can’t fix by asking nicely, so gather what you have before you start.
And don’t ignore the balance. Interest keeps running on an unpaid amount even after the return is in. To see how a rising income hits at each step, run a figure through the marginal tax rate calculator. It uses 2026 data, so read it for the pattern, not for 2023 dollars.
How were the figures checked?
The 2023 rates are from the Canada Revenue Agency‘s page of tax rates and income brackets for all years. The filing dates, penalty and change rules are from the CRA’s pages on certified software, late-filing penalties and changing a return, read in September 2026. The $60,000 example is our own arithmetic on the CRA brackets. We aren’t a government service and we don’t speak for one.
Frequently asked questions
What was the federal tax rate for 2023?
Five rates applied, from 15% up to 33%. The first $53,359 of taxable income was taxed at 15%, and 33% applied above $235,675.
Can I still file my 2023 taxes?
Yes. The CRA says NETFILE takes first returns for 2018 to 2025 through certified software until January 29, 2027.
What is the penalty for filing late?
Five percent of the balance owing plus 1% for each full month late, up to 12 months. Interest also runs on unpaid tax.
Is there a penalty if I'm owed a refund?
The penalty is a percentage of the balance owing, so with nothing owing there's nothing to charge. The refund just waits.
How do I fix a 2023 return I already filed?
Wait for the notice of assessment, then use Change my return in your CRA account, ReFILE in certified software, or paper form T1-ADJ.
- How Canadian income tax works: brackets and credits
How federal and provincial Canadian income tax stack up, what marginal and average rates mean, and how credits and deductions change your bill