New Tax Credits for 2022 in Canada: Brief Guide

New Tax Credits for 2022 in Canada: Brief Guide

Whether you’re a seasoned business professional or new to choosing employee benefits, changes to the tax code impact you, your employees, and your business.

The Canadian government has introduced several new tax credits for 2022 in Canada, including the goods and services tax credit, the children’s fitness tax credit, and more. Knowing what these tax credits are and if you qualify could reduce your tax burden when you file your 2022 personal income tax return by May 1, 2023.

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What Are Tax Credits?

Tax credits allow qualifying taxpayers to subtract a percentage of eligible expenses from the total tax burden they owe to the Canadian government. In some cases, credits work as recognition for taxes already paid or function as a discount in advance or paying in certain circumstances.

The Difference Between Tax Deductions and Tax Credits

Tax deductions reduce the amount of income on which the government may tax you. In contrast, credits reduce your overall tax debt, regardless of income.

For example, if you earned $75,000 and qualified for a $3,000 deduction, your taxable income would reduce to $72,000. If you’re in the 25% tax bracket, this tax deduction would save you $750 in taxes ($3,000 x .25).

If you earned $75,000 and you qualify for a $3,000 credit, the credit would reduce your tax bill by $3,000, regardless of your tax bracket. If you are in the 25% tax bracket, you’d save $3,000 in taxes.

In a sense, tax credits treat all or a portion of the income you have already spent on select products, goods, or services as taxes paid. Tax credits are generally more beneficial and can save Canadians more money when tax season rolls around.

New Tax Credits to Keep in Mind When Filing Your 2022 Taxes

Changes in Canadian tax law can have a significant impact on your business and employees. Stay ahead of relevant or new tax credits for 2022 in Canada. These credits may be changing significantly or could offer those in your workplace significant advantages during the increased inflation of the 2022 tax year.

The Goods and Services Tax Credit

The Children’s Fitness Tax Credit

The Public Transit Tax Credit

The Volunteer Firefighter’s Tax Credit

Adjusted 2023 Tax Brackets

In addition to changes to existing tax credits or itemized deductions, Canadian tax authorities have adjusted the tax brackets in 2022 to account for the rising impact of inflation and the rise in consumer prices and cost of living. These tax brackets take effect for the 2022 filing season. 

Tax bracket changes can have considerable impacts on employee tax burdens. In some cases, offsetting an anticipated increase in employee tax responsibility with the availability of employer-assisted insurance or other policies can help mitigate the impact.

How Tax Brackets Are Changing in 2023

How Do Tax Credits Apply to Health Insurance?

From a business standpoint, employers may qualify for select tax credits or deductions based on the employee benefits they provide.

The rules surrounding specific deductions for employer-provided private health insurance in Canada are strict. Speak to your accountant to learn which tax credits or deductions you may qualify for in any given year.


Get Started with Group Enroll

At Group Enroll, we help employers and businesses maximize their employee benefit opportunities by making it easy to compare small business benefits and group health insurance plans. Now that you know more about new tax credits for 2022 in Canada, find insurance policies for your workplace by browsing providers today. Fill out the Group Enroll online quote form to get started. You can also email us at or send mail to Group Enroll, 10 Great Gulf Drive, Unit 5, Vaughan, ON, L4K 5W1.