2024 has just begun, and while the new year brings hope for financial relief, according to the advocacy group Canadian Taxpayers Federation (CTF), Canadians' pockets will be tight this year as a range of expenses continue to rise.
Alcohol, gas, payroll taxes, food, etc., will be the reason why Canadian households spend more money. Franco Terrazzano, Federal Director of the Canadian Taxpayers' Federation, summed up the various cost increases in 2024 in one sentence, "A tax hike will give Canadians a hangover for the new year." ”
According to CTF's annual New Year's Tax Changes Report, the cost of living for the average Canadian is set to rise further, despite the pervasive affordability issues in every province.
Tax increases on the Canada Pension Plan (CPP) and Federal Employment Insurance (EI) mean that Canadians' total take-home income will be reduced because employees will have to pay more for each plan. Canadians will need to pay $113 more for CPP and $47 more for EI, and the maximum pensionable and income cap thresholds will also increase.
Canada's carbon tax is also going to increase. Beginning April 1, 2024, the increase in the federal carbon tax will increase the cost of gasoline from 14.3 cents per liter to 17.6 cents per liter.
The increase in the carbon tax will affect gasoline and natural gas. The price of natural gas will increase slightly depending on the province in which you are located.
In addition, drinking alcohol will also become a more expensive consumption Xi. As alcohol taxes on beer, wine, and spirits increase, Canadians pay more for alcohol. Beginning April 1, 2024, the federal excise tax on alcohol will increase by 4.7%, and the report estimates that taxpayers will lose about 100 million next year.
In addition to the tax hike leading to higher beverage prices, Canadians also spend more on food.
According to Canada's 2024 Food Price Report, food prices are expected to increase by 2.5% to 4.5%, taking an average family of four in Toronto, Ontario, spending $700 more in 2024 than in 2023, with an average annual expenditure of $16,297.20 on food.
And the increase in meat, vegetables and baked goods could even rise to 5 to 7 percent.
In addition, even if high interest rates compensate, housing prices in Canada may rise. According to a report by real estate company Royal LePage, home prices will rise by 5.5% from last year, with an average home price expected to be $843,684 in 2024.
These are the major price increases that are currently expected in 2024.
Another spike in expenses that many families may face is that homeowners who renew their mortgages in 2024 will face a huge increase in their monthly payments.
Are everyone's wallets okay?