Today, the Department of Finance Canada released its annual estimates of the fiscal cost of federal tax measures in the 2023 Report on Federal Tax Expenditures—Concepts, Estimates and Evaluations.

• Since 2015, the government has introduced a suite of measures to promote tax fairness and integrity in the tax system, including raising taxes on the wealthiest one per cent of Canadians, and cutting taxes for 20 million low- and middle-income Canadians.

• Studies published by international organizations – including by the Organisation for Economic Co-operation and Development (OECD) in 2010 and by the International Monetary Fund (IMF) in 2011 – have recognized the quality of Canada’s reporting on federal tax expenditures, noting the broad range of measures tracked and details provided.  

• This report has been made available to Canadians, on an annual basis, since 1994. 

• Tax expenditures can be described as tax measures that depart from the benchmark tax system to achieve various policy objectives, with consequent lower tax revenues. They include preferential tax rates, exemptions, deductions, deferrals, and tax credits. 

• This year’s report includes three analytical papers:

  • Gender-based Analysis Plus (GBA+) of Tax Expenditures: A Closer Look at Persons With Disabilities, which shows that tax expenditures contribute to reducing pre-tax income inequalities between persons with and without disabilities;
  • Profile of the Northern Residents Deductions, which is a set of deductions that mitigate the increased living costs faced by individuals living in northern and isolated communities; and,
  • Tuition Tax Credit: A Profile of Claimants and Beneficiaries, which lowers the after-tax cost of investing in education by providing tax relief for tuition.

• In Budget 2022, the government launched its Employment Strategy for Persons With Disabilities, to help increase labour market participation by persons with disabilities and make workplaces more inclusive and accessible.

  • In addition, the government provides support for persons with disabilities through tax credits, such as the Disability Tax Credit, savings assistance through the Registered Disability Savings Program, and partial income replacement through the Canada Pension Plan Disability benefits.

• In Budget 2021, to help Northerners access the services they need, like school and health care, the government extended the Northern Residents Deduction of up to $1,200 in eligible travel expenses to all Northerners. 

• In the 2022 Fall Economic Statement, the government permanently eliminated interest on the federal portion of student loans, to help new and recent graduates get ahead. The government also improved the student loan Repayment Assistance Plan by raising the repayment threshold cap so that graduates aren’t required to make payments until they earn at least $40,000 per year, while also reducing borrowers’ maximum monthly payments from 20 per cent of household income to 10 per cent.

  • Quebec, Nunavut, and the Northwest Territories do not participate in the Canada Student Financial Assistance Program but receive annual alternative payments in support of their own student financial assistance programs.

Related products

• Report on Federal Tax Expenditures—Concepts, Estimates and Evaluations

Media may contact:

Media Relations
Department of Finance Canada
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613-369-4000

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