Updates Recordings Resources
Updates
Updates include calculation and rate changes to reflect current tax law resulting from inflation adjustments, legislative changes, and review of supported authorities. Effective dates indicate when the changes enter into force. Amounts are annual unless stated otherwise.
Angola
Income Tax: Corrected the calculation by removing the Calculate Tax Exempted Salary input following the repeal of the nontaxable 13th month salary, effective September 6, 2019. Previously, when the input was set to Yes, 1/13 of base salary was exempted, resulting in an understatement of tax.
Canada
Increased the following, effective January 1, 2023:
Income Tax:
Tax bracket thresholds. The threshold for the 37% top bracket increased by CAD 13,968 to CAD 235,676.
Minimum and maximum personal and spouse amounts by CAD 802 to CAD 13,521 and CAD 602 to CAD 15,000, respectively.
Employment amount by CAD 81 to CAD 1,369.
Maximum voluntary pension deduction by CAD 760 to CAD 31,540.
Social Security:
Pension plan (CPP) wage ceiling and contribution rate by CAD 1,600 to CAD 66,500 and 0.25% to 5.95%, respectively.
Employee and employer employment insurance contribution rates by 0.05% to 1.63% and 0.068% to 2.28%, respectively.
Employment insurance wage ceiling by CAD 1,200 to CAD 61,500.
Alberta
Income Tax: Increased the following, retroactively effective January 1, 2022:
Tax bracket thresholds. The threshold for the top rate of 15% increased by CAD 7,243 to CAD 322,171.
Personal, spouse, and dependent amounts by CAD 445 to CAD 19,814.
British Columbia
Income Tax: Increased the following, effective January 1, 2023:
Tax bracket thresholds. The threshold for the top rate of 20.5% increased by CAD 13,567 to CAD 240,658.
Personal amount by CAD 676 to CAD 11,978.
Spouse and dependent amounts by CAD 578 to CAD 10,256.
Manitoba
Income Tax: Increased the following, effective January 1, 2023:
Tax bracket thresholds. The threshold for the 17.4% top rate increased by CAD 5,174 to CAD 79,590.
Personal amount by CAD 705 to CAD 10,850.
New Brunswick
Income Tax: Increased the following, effective January 1, 2023:
Tax bracket thresholds. The threshold for the 20.3% top rate increased by CAD 10,476 to CAD 176,756.
Personal amount by CAD 738 to CAD 12,458.
Spouse and dependent amounts by CAD 579 to CAD 9,765.
Newfoundland and Labrador
Income Tax: Increased the following, effective January 1, 2023:
Tax bracket thresholds. The threshold for the 21.8% top rate increased by CAD 93,000 to CAD 1.09 million.
Personal amount by CAD 579 to CAD 10,381.
Spouse and dependent amounts by CAD 474 to CAD 8,483.
Ontario
Income Tax: Increased the following, effective January 1, 2023:
Two lowest tax bracket thresholds. The threshold for the 13.16% top rate remains CAD 220,000.
Surtax bracket thresholds. The threshold for the 36% top rate increased by CAD 411 to CAD 6,798.
Personal amount by CAD 718 to CAD 11,859.
Spouse and dependent amounts by CAD 609 to CAD 10,069.
Quebec
Increased the following, effective January 1, 2023:
Income Tax:
Tax bracket thresholds. The threshold for the top rate of 25.75% increased by CAD 7,250 to CAD 119,905.
Personal and spouse amounts by CAD 1,040 to CAD 17,183.
Maximum deduction for workers by CAD 80 to CAD 1,315.
Social Security:
Pension plan (QPP) contribution rate by 0.25% to 6.4%.
Employee and employer employment insurance contribution rates by 0.07% to 1.27% and 0.098% to 1.778%, respectively.
Employment insurance wage ceiling in accordance with federal amount.
Parental insurance plan (QPIP) wage ceiling by CAD 2,500 to CAD 90,500.
Saskatchewan
Income Tax: Increased the following, effective January 1, 2023:
Tax bracket thresholds. The threshold for the 14.5% top rate increased by CAD 8,483 to CAD 142,121.
Personal, spouse, and dependent amounts by CAD 1,055 to CAD 17,669.
Croatia
Income Tax and Social Security: Changed the estimator currency to the Euro. Tax values are redenominated using the HRK-EUR rate of 7.5345.
Update the country currency for Croatia by navigating to Configuration > Countries. Select Croatia and change the Currency to EUR.
Czech Republic
Increased the following, effective January 1, 2023:
Income Tax: Tax bracket thresholds. The threshold for the 23% top rate increased by CZK 67,804 to CZK 1.94 million.
Social Security: Social security wage ceiling by CZK 67,824 to CZK 1.94 million.
Finland
Income Tax: Removed the income threshold of EUR 2,500 from the credit calculation, effective January 1, 2023.
Kazakhstan
Social Security: Changed the following, effective January 1, 2023, unless stated otherwise:
Added the employer pension contribution rate of 5%.
Increased the employee pension contribution by KZT 1.5 million to KZT 4.5 million.
Corrected the employer medical insurance contribution rate to 3%, effective January 1, 2022. Previously, 2% was used, resulting in a maximum understatement of KZT 72,000.
Philippines
Changed the following, effective January 1, 2023:
Income Tax: Decreased the tax rates for the middle four brackets. The top rate remains 35% on income over PHP 8 million.
Social Security: Increased the following employee and employer contributions:
Social security by PHP 2,700 to PHP 16,200 and PHP 8,700 to PHP 34,200, respectively.
Health insurance by PHP 5,100 to PHP 24,300.
Puerto Rico
Increased the following, effective January 1, 2023:
Income Tax:
Maximum deduction for employee voluntary pension contributions by USD 2,000 to USD 22,500 for employees under age 50 and to USD 30,000 for employees 50 and older.
Maximum tax relief for employee and employer voluntary pension contributions by USD 5,000 to USD 66,000.
Social Security: OASDI wage ceiling by USD 13,200 to USD 160,200.
Serbia
Income Tax:
Added the Select Personal Deduction For employees under age 40, a personal age-based deduction of RSD 6,536,448 is calculated. The deduction of RSD 3,268,224 continues to calculate for employees 40 and older.
. The previous calculation resulted in a maximum overstatement of RSD 163,411 when taxable income exceeded RSD 9,804,672.
Singapore
Income Tax: Added two top tax brackets of 23% and 24% applicable to income over SGD 500,000 and SGD 1 million, respectively, effective January 1, 2023.
Slovakia
Income Tax: Increased the child tax bonus by EUR 334 to EUR 600, effective January 1, 2023.
South Korea
Social Security: Increased the employee and employer health insurance contribution rates by 0.15% to 4%, effective January 1, 2023.
Switzerland
Basel Land
Income Tax: Decreased the tax bracket thresholds, effective January 1, 2023. The threshold for the top bracket decreased by CHF 44,823 to CHF 1,173,736.
Schaffhausen
Income Tax: Increased the insurance premium deduction as follows, effective January 1, 2022:
Single taxpayers by CHF 2,050 to CHF 3,750.
Married taxpayers by CHF 4,000 to CHF 7,500.
Dependents by CHF 300 to CHF 1,000 per dependent.
United Kingdom
Social Security: Removed the additional employee and employer National Insurance Contribution of 1.25%, repealed effective November 6, 2022. This contribution originally became effective April 6, 2022. It was added in v.22.1 to calculate for cost estimates with years after 2021 and compensation calculations with effective dates after March 31, 2022.
Recalculations of any cost estimates and compensation calculations after this upgrade will exclude the additional contribution.
United States
Increased the following for all filing status, effective January 1, 2023. Amounts apply to single taxpayers:
Income Tax:
Tax bracket thresholds. The threshold for the 37% top bracket increased by USD 38,225 to USD 578,125.
Standard deductions. The deduction increased by USD 900 to USD 13,850.
Foreign earned income exclusion by USD 8,000 to USD 120,000.
Maximum deduction for employee voluntary pension contributions by USD 2,000 to USD 22,500 for employees under age 50 and to USD 30,000 for employees 50 and older.
Maximum tax relief for employee and employer voluntary pension contributions by USD 5,000 to USD 66,000.
Alternative minimum tax thresholds, exemptions, and exemption phaseout thresholds.
Social Security: OASDI wage ceiling by $13,200 to $160,200.
Arizona
Income Tax: Replaced the previous three-tier progressive table with a flat rate of 2.5%, effective January 1, 2023.
Arkansas
Income Tax: Increased the tax bracket thresholds, effective January 1, 2023. The threshold for the 4.9% top bracket increased by USD 700 to USD 24,300.
California
Income Tax: Increased the following, retroactively effective January 1, 2022:
Tax bracket thresholds. The threshold for the 12.3% top rate increased by USD 51,906 to USD 677,275. Combined with the 1% tax imposed on income exceeding USD 1 million for mental health services, the top rate remains at 13.3%.
Phaseout threshold for itemized deductions and exemption credits. The threshold increased by USD 17,619 to USD 229,908 for single taxpayers.
Standard deductions and exemption credits.
Idaho
Income Tax: Replaced the previous five-tier progressive tax table with a flat rate of 5.8%, effective January 3, 2023.
Indiana
Income Tax: Decreased the tax rate by 0.08% to 3.15%, effective January 1, 2023.
Iowa
Income Tax: Replaced the previous nine-tier progressive tax table with a flat rate of 6%, effective January 1, 2023.
Kentucky
Income Tax: Changed the following, effective January 1, 2023:
Decreased the tax rate by 0.5% to 4.5%.
Increased the standard deduction by USD 210 to USD 2,980.
Minnesota
Income Tax: Increased the following for all filing status, effective January 1, 2023. Amounts apply to single taxpayers:
Tax bracket thresholds. The threshold for the 9.85% top bracket increased by USD 12,120 to USD 183,340.
Deduction and dependent exemption phaseout thresholds. The thresholds increased by USD 14,600 to USD 220,650.
Dependent exemption by USD 350 to USD 4,800.
Mississippi
Income Tax: Replaced the previous three-tier progressive table with a flat rate of 5% on income above USD 10,000, effective January 1, 2023.
Nebraska
Income Tax: Increased the following, unless stated otherwise, for all filing status, effective January 1, 2023. Amounts apply to single taxpayers:
Decreased the top bracket rate by 0.2% to 6.64%.
Tax bracket thresholds. The threshold for the 6.64% top rate increased by USD 2,550 to USD 35,730.
Standard deduction by USD 550 to USD 7,900.
Exemption credit by USD 11 to USD 157.
New York
Income Tax: Made the following changes, effective January 1, 2023:
Decreased the 5.85% and 6.25% tax bracket rates to 5.5% and 6%, respectively.
Updated the tax benefit recapture worksheets to incorporate the new tax rates.
Ohio
Income Tax: Increased the tax bracket thresholds, effective January 1, 2023. The bracket for the 3.99% top rate increased by USD 4,650 to USD 115,300.
Oregon
Income Tax: Increased the following for all filing status, effective January 1, 2023. Amounts apply to single taxpayers:
Tax bracket thresholds. The threshold for the 9.9% top rate remains USD 125,000.
Standard deductions. The deduction increased by USD 185 to USD 2,605.
Exemption credit by USD 17 to USD 236.
Rhode Island
Income Tax: Increased the following for all filing status, effective January 1, 2023. Amounts apply to single taxpayers:
Tax bracket thresholds. The threshold for the 5.99% top bracket increased by USD 11,900 to USD 166,950.
Standard deductions. The deduction increased by USD 700 to USD 10,000.
Personal exemption by USD 350 to USD 4,700.
Personal exemption phaseout threshold and step by USD 16,700 to USD 233,750 and USD 500 to USD 6,700, respectively.
Utah
Income Tax: Increased the following, effective January 1, 2023:
Dependent exemption by USD 139 to USD 1,941.
Credit phaseout thresholds for all filing status. The threshold increased by USD 1,194 to USD 16,742 for single taxpayers.
Wisconsin
Income Tax: Increased the following for all filing status, effective January 1, 2023. Amounts apply to single taxpayers:
Tax bracket thresholds. Increased the threshold for the 7.65% top bracket by USD 23,220 to USD 304,170.
Standard deductions and phaseout thresholds. The deduction and phaseout threshold increased by USD 970 to USD 12,760 and by USD 1,410 to USD 18,400, respectively.
Income Tax Treaties
Added the following treaties:
Treaty Countries
|
Effective Date
|
Angola – China
|
Jan 1, 2023
|
Chile – Netherlands
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Jan 1, 2023
|
Chile – United Arab Emirates
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Jan 1, 2023
|
Colombia – France
|
Jan 1, 2023
|
Colombia – Japan
|
Jan 1, 2023
|
Czech Republic – Qatar
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Jan 1, 2023
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Czech Republic – Senegal
|
Jan 1, 2023
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Ecuador – United Arab Emirates
|
Jan 1, 2023
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Ghana – Morocco
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Jan 1, 2023
|
Japan – Morocco
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Jan 1, 2023
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Morocco – Slovenia
|
Jan 1, 2023
|
Removed the following treaty due to termination:
Treaty Countries
|
Termination Date
|
Russia – Ukraine
|
Jan 1, 2023
|
Social Security Agreements
Added the agreement between Switzerland and Tunisia with a coverage period of 84 months, effective October 1, 2022.
Recordings
Resources
Help Center articles updated this release: