{"id":4221,"date":"2025-01-07T17:58:38","date_gmt":"2025-01-07T17:58:38","guid":{"rendered":"https:\/\/wp.springfinancial.ca\/?p=4221"},"modified":"2025-12-12T18:52:42","modified_gmt":"2025-12-12T18:52:42","slug":"canada-tax-changes-2024","status":"publish","type":"post","link":"https:\/\/springfinancial.ca\/fr\/blog\/tax-tips\/canada-tax-changes-2024\/","title":{"rendered":"Canada Tax Changes You Should Know About in 2025"},"content":{"rendered":"\r\n<p>Before you start filing your taxes, though, you should know that the first day you are able to start filing is February 19. This is mostly due to the fact T4\u2019s are due to be released by the end of February. You have until April 30 to file your taxes. The only exception to this is for those who are self-employed. They have until June 15 to file their taxes. Any amounts owed, though, have to be paid by April 30.<\/p>\r\n\r\n\r\n\r\n<p>When filing in 2025 for the 2024 tax year, there are quite a few changes you need to consider that are different from the current amounts and methods. These changes may or may not affect you, but it\u2019s good to know since they will be this way going forward.\u00a0<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Income Tax Packages<\/h2>\r\n\r\n\r\n\r\n<p>As of 2024, the income tax and benefit packages from the Canada Revenue Agency have gotten been reduced. These packages no longer include line-by-line instructions. That said, the What\u2019s New section of the package is still included. By removing the line-by-line instructions, the package is now around 20 percent smaller. About 30 pages have been removed.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>This mainly affects those who mail in their returns to the CRA. Not everyone is administering this package because taxes can also be done online through your web browser and through an accountant.\u00a0<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Advanced Canada Workers Benefit<\/h2>\r\n\r\n\r\n\r\n<p>Form RC201 is no longer required to receive advanced Canada worker&rsquo;s benefits. If you received this benefit for the previous tax year, the payments will not be automatically issued.\u00a0<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Deduction for Tools<\/h2>\r\n\r\n\r\n\r\n<p>For tradespersons and apprentice mechanics, the maximum employment deduction has increased. It used to be $500, but that amount has now increased to $1000. This also means that the threshold for expenses eligible for deductions has also changed.\u00a0<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">COVID-19 Benefit Repayments<\/h2>\r\n\r\n\r\n\r\n<p>If you made any repayments to federal, provincial or territorial COVID-19 benefits in 2024 due to error, you can claim them. These can be claimed as a deduction on line 23200 when you file your return. This is important because you can receive a portion of those deductions on your return, and every cent counts right now, along with the cost of inflation.\u00a0<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">FHSA Accounts<\/h2>\r\n\r\n\r\n\r\n<p>FHSAs, also referred to as First Home Savings Accounts, are registered accounts that allow you to save for your first home. Because these accounts are registered, they\u2019re also tax deductible. If you opened or made contributions to your FHSA in 2023, you can claim these on your tax returns.\u00a0<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Home Office Expenses<\/h2>\r\n\r\n\r\n\r\n<p>2023 was the last year you could use the temporary flat rate method to deduct home office expenses. Now, you\u2019re required to file using the detailed method of form T2200, Declaration of Conditions of Employment. The employer must also sign this.\u00a0<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Multigenerational Home Renovation Tax Credit<\/h2>\r\n\r\n\r\n\r\n<p>This is a new refundable tax credit that allows those who are eligible to claim certain costs of creating a secondary unit in an eligible dwelling for a qualifying individual (senior or an adult who qualifies for the disability tax credit) so they can live with their qualifying relation. If you do qualify, you can claim up to $50,000 in qualifying expenditures for each renovation that qualifies and get up to a maximum of $7,500 for each qualifying renovation. A percent is calculated based the total spent.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Residential Property Flipping Rule<\/h2>\r\n\r\n\r\n\r\n<p>As of January 1, 2023, one of the new tax measures is that any profits you gain from selling a home you owned for less than a year are considered business income instead of capital gains. The only exceptions are if the property was considered inventory of the taxpayer or if the sale occurred due to life events. Normally, the value of your property that\u2019s considered your primary residence isn\u2019t subject to capital gains.\u00a0<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Farmer&rsquo;s Tax Credit Changes<\/h2>\r\n\r\n\r\n\r\n<p>The return of fuel to farmers tax credit is now available to self-employed farmers. It\u2019s also available to individuals who are members of a partnership owning a farming business. That said, they have to have at least one permanent establishment in Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, PEI, or Saskatchewan.\u00a0<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Tax Increases for 2025<\/h2>\r\n\r\n\r\n\r\n<p>For 2025, there are some increases that you need to be aware of. The first is the increase in EI premiums. The Canada Employment Insurance Commission sets this rate every year and has been set to $1.66 per $100 for the earnings of workers and $2.32 for the earnings of employers.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>There\u2019s also the new alternative minimum tax. These taxes ensure that high-income individuals still pay a minimum amount of tax. Currently, there is a $40,000 exemption and an alternative minimum tax rate of 15 percent.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">New Benefits As Of 2024<\/h2>\r\n\r\n\r\n\r\n<p>For 2024, the new benefit is the Canada Revenue Agency\u2019s <a href=\"https:\/\/www.springfinancial.ca\/blog\/lifestyle\/what-is-canada-dental-benefit-who-can-apply\">Canada Dental Benefit<\/a>. Instead of just being available for dental services to children, it became available to all eligible Canadians started in 2024. Many Canadians will start receiving instructions on how to apply. That said, this program became available as of May 2024.\u00a0\u00a0<\/p>\r\n\r\n\r\n\r\n<p>With this program,\u00a0 it\u2019s important to know who this program is available to. In order to qualify, you\u2019ll have to have no dental insurance and an Annual Family Net Income below $90,000. Those who are 87 or older should have received information on applying in December of 2023. Those between 77 and 86 should have received application information in February of 2024, and those 70 or older should have received information in March. After that, other eligible individuals will start receiving information.\u00a0<\/p>\r\n\r\n\r\n\r\n<p><a href=\"https:\/\/www.springfinancial.ca\/apply-now?SID=blog&amp;utm_source=blog&amp;utm_medium=inlinebanner&amp;utm_content=canada-tax-changes-2024\"><img decoding=\"async\" style=\"display: block; margin-left: auto; margin-right: auto;\" src=\"https:\/\/springfinancial.ca\/wp-content\/uploads\/2026\/03\/BlogBanner.png\" \/><\/a><\/p>\r\n\r\n\r\n\r\n<p>&nbsp;<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">2025 Income Tax Brackets<\/h2>\r\n\r\n\r\n\r\n<p>Just like every year, the 2025 federal tax brackets have risen. These marginal rates dictate how much tax you pay based on your annual income. Let\u2019s take a look.\u00a0<\/p>\r\n\r\n\r\n\r\n<figure class=\"wp-block-table\">\r\n<table class=\"has-fixed-layout\">\r\n<tbody>\r\n<tr>\r\n<td><strong>Taxable Income Amounts<\/strong><\/td>\r\n<td>Marginal Tax Rate<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><strong>On the portion of the income from $0 &#8211; $<\/strong><strong>57,375<\/strong><\/td>\r\n<td>15%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><strong>On the portion of income, that\u2019s $<\/strong><strong>57,375<\/strong><strong> &#8211; $<\/strong><strong>114,750<\/strong><\/td>\r\n<td>20.5%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><strong>On the portion of income that\u2019s $<\/strong><strong>114,750<\/strong><strong> &#8211; $<\/strong><strong>177,882<\/strong><\/td>\r\n<td>26%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><strong>On the portion of income that\u2019s $<\/strong><strong>177,882<\/strong><strong> &#8211; $<\/strong><strong>253,414<\/strong><\/td>\r\n<td>29%<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><strong>On the portion of income, that\u2019s $<\/strong><strong>253,414<\/strong><strong> plus<\/strong><\/td>\r\n<td>33%<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/figure>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Personal Exemption for 2025<\/h2>\r\n\r\n\r\n\r\n<p>Another thing that has changed in 2025 is the personal exemption amount, also referred to as a basic personal amount. What exactly is this, though? Well, the basic personal amount is a non-refundable tax credit that everyone can claim. It provides a full reduction for those who have an income below the basic personal amount and a partial reduction for those who have an income above the basic personal amount. For 2025, this amount is $16,129.\u00a0<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Capital Gains<\/h2>\r\n\r\n\r\n\r\n<p>Another new change to be aware of is the inclusion rate of capital gains. This change was made in 2024 and affects dividends, capital property, and all other types of capital gains. For corporations, all capital gains now have an inclusion rate of \u2154. For personal capital gains, the inclusion rate for all gains is $250,000 or lower; the rate is still \u00bd. Anything above this amount is taxed at the rate of \u2154.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Contribution Limits<\/h2>\r\n\r\n\r\n\r\n<p>Another change for the 2025 year is the contribution limits for RRSPs, TFSAs and FHSAs. All of these accounts are registered accounts and, therefore, have annual and lifetime limits. The limits will change depending on which type of account you have. Let\u2019s take a look at each one.\u00a0<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">RRSPs<\/h3>\r\n\r\n\r\n\r\n<p><a href=\"https:\/\/www.springfinancial.ca\/blog\/save-invest\/are-rrsps-worth-it\">RRSPs<\/a>, also known as Registered Retirement Savings Plans, are tax-deferred registered accounts that allow you to save money for retirement. Any funds you contribute to your RRSP are tax-free until you start withdrawing. Since your annual income will likely be lower when you retire than when you\u2019re working, the tax you pay on your RRSP income will also likely be lower.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>However, there are contribution limits to RRSPs. These limits are based on your annual income. You can put up to 18 percent of your annual income in RRSPs. That said, though, for 2025, that amount can\u2019t exceed $33,810. Any contributions above that will be subject to a penalty of 1% per month on contributions that exceed your limit by more than $2,000.\u00a0<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">TFSAs<\/h3>\r\n\r\n\r\n\r\n<p><a href=\"https:\/\/www.springfinancial.ca\/blog\/tax-tips\/tfsa-over-contributions\">TFSAs<\/a>, also known as Tax-Free Savings Accounts, are registered accounts where you can save your money and earn interest without having to pay any taxes. Unlike other registered accounts, though, you can withdraw funds from your TFSA whenever you like. However, there are annual limits as to how much you can contribute.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>For TFSAs, the annual limit for 2025 is $7,000. If you have any unused contributions from previous years, though, you\u2019re able to carry those forward from the previous tax year. For any contributions that exceed your contribution limit, there is a penalty of 1 percent per month on the highest excess amount.\u00a0<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">FHSAs<\/h3>\r\n\r\n\r\n\r\n<p>FHSAs, also known as First Home Savings Accounts, are new registered accounts as of 2023. These accounts allow Canadians who haven\u2019t purchased a home to save funds to purchase their first home. The annual contributions for this account are $8,000, with a lifetime limit of $40,000.<\/p>\r\n\r\n\r\n\r\n<p>With FHSAs, all contributions are tax-free. As long as these contributions are used for eligible withdrawals, then the withdrawals are also tax-free. Once the contributions have been on an eligible withdrawal, then the account must be closed within a year from your first eligible withdrawal. The account must also be closed 15 years from the time you open the account or the year you turn 71 years of age. When you close the account, though, you don\u2019t have to withdraw the funds. You can transfer them to an RRSP or a RRIF.\u00a0<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">CPP Changes 2025<\/h2>\r\n\r\n\r\n\r\n<p>Another thing to know for 2025 is that the maximum pensionable earnings is $71,300 for <a href=\"https:\/\/www.springfinancial.ca\/blog\/boost-your-income\/canada-pension-plan-cpp-highlights\">CPP<\/a>, and the amount of the basic exemption will stay at $3,500. However, there\u2019s also a second earnings ceiling of $81,200. This is used to determine CCP2 contributions. Incomes between $71,300 and the maximum insurable earnings ceiling of $81,200 will be subject to CCP2 contributions. High-income earners above $81,200 aren\u2019t able to make contributions on pensionable earnings on amounts over and above.\u00a0<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Overview<\/h2>\r\n\r\n\r\n\r\n<p>For 2025, quite a few different changes are introduced when it comes to taxes and government benefits. There\u2019s also the addition of FHSAs, which allow first-time home buyers to save funds tax-free. There\u2019s the addition of the Canada Dental Plan and a change in Marginal Tax Rates and the Basic Personal Amount. Before you tackle your annual tax and benefit return, it\u2019s a good idea to brush up on these changes in order to get the most from your return.\u00a0<\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>With tax season upon us, it\u2019s important to be aware of all tax changes added to help make filing your taxes simpler and to help you get the largest refund possible from the Federal Government. For 2025, there have been a number of changes that have come into effect and have a key role when it comes to filing your taxes, so you should be aware to verify you have everything you need to file.<\/p>\n","protected":false},"author":23,"featured_media":4318,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[58],"tags":[],"class_list":["post-4221","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax-tips"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Canada Tax Changes You Should Know About in 2025 - Spring Financial<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/springfinancial.ca\/blog\/tax-tips\/canada-tax-changes-2024\/\" \/>\n<meta property=\"og:locale\" content=\"fr_FR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Canada Tax Changes You Should Know About in 2025 - Spring Financial\" \/>\n<meta property=\"og:description\" content=\"With tax season upon us, it\u2019s important to be aware of all tax changes added to help make filing your taxes simpler and to help you get the largest refund possible from the Federal Government. For 2025, there have been a number of changes that have come into effect and have a key role when it comes to filing your taxes, so you should be aware to verify you have everything you need to file.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/springfinancial.ca\/blog\/tax-tips\/canada-tax-changes-2024\/\" \/>\n<meta property=\"og:site_name\" content=\"Spring Financial\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/springfinancial\/\" \/>\n<meta property=\"article:published_time\" content=\"2025-01-07T17:58:38+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-12T18:52:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/springfinancial.ca\/wp-content\/uploads\/2024\/02\/BlogMaster1_OriginalSize.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"2000\" \/>\n\t<meta property=\"og:image:height\" content=\"1120\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"Jessica Steer\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"\u00c9crit par\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jessica Steer\" \/>\n\t<meta name=\"twitter:label2\" content=\"Dur\u00e9e de lecture estim\u00e9e\" \/>\n\t<meta name=\"twitter:data2\" content=\"9 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/springfinancial.ca\/blog\/tax-tips\/canada-tax-changes-2024\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/springfinancial.ca\/blog\/tax-tips\/canada-tax-changes-2024\/\"},\"author\":{\"name\":\"Jessica Steer\",\"@id\":\"https:\/\/springfinancial.ca\/#\/schema\/person\/33a6ea920a4b1c4924d6b2de718e5c2b\"},\"headline\":\"Canada Tax Changes You Should Know About in 2025\",\"datePublished\":\"2025-01-07T17:58:38+00:00\",\"dateModified\":\"2025-12-12T18:52:42+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/springfinancial.ca\/blog\/tax-tips\/canada-tax-changes-2024\/\"},\"wordCount\":1693,\"publisher\":{\"@id\":\"https:\/\/springfinancial.ca\/#organization\"},\"image\":{\"@id\":\"https:\/\/springfinancial.ca\/blog\/tax-tips\/canada-tax-changes-2024\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/springfinancial.ca\/wp-content\/uploads\/2024\/02\/BlogMaster1_OriginalSize.webp\",\"articleSection\":[\"Tax Tips\"],\"inLanguage\":\"fr-FR\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/springfinancial.ca\/blog\/tax-tips\/canada-tax-changes-2024\/\",\"url\":\"https:\/\/springfinancial.ca\/blog\/tax-tips\/canada-tax-changes-2024\/\",\"name\":\"Canada Tax Changes You Should Know About in 2025 - 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