Tax Filing Deadline: Mark Your Calendar
For most individuals, the deadline to file and pay taxes is April 30, 2025. Miss it, and you could face penalties and interest. However, if you’re self-employed, you have until June 16, 2025 to file, but keep in mind, any taxes owed must be paid by April 30 to avoid interest.
Pro Tip: The earlier you file, the quicker you can get your refund. Plus, you’ll have more time to gather your receipts and ask questions if you run into any issues with the CRA.
New Tax Brackets for 2025
This year, federal income tax brackets have increased by 2.7% to account for inflation. Here’s a quick look:
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- $57,375.01 – $114,750: 20.5% tax rate
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- $114,750.01 – $177,882: 26% tax rate
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- $177,882.01 – $253,414: 29% tax rate
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- Over $253,414: 33% tax rate
These increases may mean tax savings for many Canadians, especially those with income closer to the lower brackets.
RRSP, CPP, and TFSA Updates
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- The RRSP contribution limit has increased to $32,490 for 2025.
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- The CPP contribution has gone up to $4,034.10 for employees and employers.
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- The TFSA contribution limit remains at $7,000 for 2025.
Maximising your contributions in these areas can lower your taxable income and potentially increase your refund.
Employment Insurance (EI) and Basic Personal Amount
The Basic Personal Amount (BPA) is slightly higher for 2025, ranging from $14,538 to $16,129, depending on your income. This is the amount you can earn without paying federal income tax.
Additionally, EI premiums have increased slightly, and the maximum EI benefit has risen from $668 to $695 per week.
Important CRA Updates for 2025
The CRA has made it easier to access your account with a new simplified sign-in process. They’ve also launched new online services like chat support and document verification to help with any filing issues. Take advantage of these updates to make your filing process smoother.
Capital Gains Tax
Good news for now—capital gains tax won’t be changing in 2025. The government has delayed raising the inclusion rate until 2026, meaning you’ll still be taxed at the current 50% rate for capital gains.
Using Your Tax Refund Wisely
If you’re expecting a tax refund, here are some smart ways to use it:
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- Pay off high-interest debt (credit cards, loans)
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- Invest in RRSPs or TFSAs for tax savings
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- Contribute to a home down payment
Need Help Navigating the 2025 Tax Season?
The 2025 tax season brings some great opportunities to save, but it can also feel complex. Don’t risk missing out on credits, deductions, or strategies that could benefit you. Contact Wescan Accountants for personalised advice and support to ensure you’re maximising your return and avoiding any surprises.
Book a consultation today with one of our experts to get ahead this tax season!