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January 2026
This page is a central hub for information on filing your Canadian tax return. Find guidance on CRA interactions, due dates and forms, reporting income (including foreign income), deductions, credits, clawbacks from income, refunds, and more - all in one place.
RRIF/RRSP Withdrawal Calculator
Trying to plan your RRSP or RRIF withdrawals for 2026 and future years based on your estimated returns? Our calculator can help you with that. Withdrawals can be calculated based on your age, or the age of a spouse. Enter your estimated rate of return, and the inflation rate, if any, that you want to use, as well as the current balance of your RRSPs or RRIFs.
How Did Your Investments Perform in 2025? Use Our Calculator to Find Out
2025 was a great year for investments! How did yours perform? Determine your 2025 return in Canadian$ for your entire portfolio, or for a particular account or investment using our calculator. All amounts must be entered in Canadian$. Up to 100 transactions can be entered into the calculator.
Life in the Tax Lane February 2026
Crypto-Assets: Reviews and Audits; Income or Capital Gains? | COVID-19 Benefits - Collections | Canada Student Loan Forgiveness Program | Beneficial Ownership | Shareholder Benefit on Land Realty Transfer.
2026 Non-Refundable Personal Tax Credit Amounts
Our 2026 non-refundable personal tax credit tables are now available, covering federal amounts and those for every province and territory except Quebec. Phase-out thresholds are also included in the tables, as well as indexation factors used to calculate the amounts. These are the amounts used in our Canadian Income Tax Calculator.
Bare Trusts, Joint Ownership, Estate Planning, Probate
T3 filing for bare trusts has again been deferred. Understand joint ownership and beneficial vs legal ownership, and how these can cause problems. Did you know you can have multiple wills in some provinces? Do you know which assets are excluded from probate? Probate fees have been updated, with Quebec being the only change for 2026.
Stopping CPP Contributions: Employees vs. Self-Employed
Canadians receiving CPP retirement benefits after age 65 can elect to stop contributing to the plan, even if they continue working. The process differs depending on employment status: employees must complete and submit Form CPT30 to make the election. Self-employed individuals make the election on Schedule 8 of their tax return. Understanding the correct procedure makes sure your contributions end when you choose.
2026 Auto Tax Deduction Limits and Benefit Rates
The ceiling for CCA for Class 10.1 vehicles will increase from $38,000 to $39,000. Tax-free motor vehicle allowances paid to employees will increase by 1 cent to to 73¢ for the first 5,000 km and 67¢ for additional kilometres. In the territories, the rates rise to 77¢ and 71¢. All other limits remain unchanged, including deductible leasing costs, taxable benefit rates for employer-provided vehicles, the CCA ceiling for Class 54 vehicles, and the maximum interest deduction.
TFSA holders should be careful not to overcontribute. Right now, the TFSA contribution room shown in My Account is not accurate, as 2025 deposits and withdrawals have not yet been updated. Be sure to track your own contributions and withdrawals to avoid going over your limit. If you have excess contributions, withdraw them as soon as possible
- penalties apply until the excess is removed.
Unlock More of Your LIF: The RRIF Transfer Strategy Many Don’t Know About
LIF holders can unlock additional retirement funds by transferring the difference between their maximum and minimum LIF withdrawals into a non-locked-in RRIF. This strategy increases the amount of money that becomes unlocked each year, even if the funds aren’t needed right away. Over time, it can create more accessible savings and improved control over future retirement income.
December 2025
Stocks, Bonds & T-Bills: Long-Term Returns to 2025
2025 was the third straight year of strong stock market performance, with the TSX up 31.7% and the S&P 500 up 12.3% in Canadian dollars. Our historical return tables show results from 1 to 76 years, showing how outcomes differ dramatically by asset class. For example, $1,000 invested in the S&P 500 fifty years ago would now be worth $396,088 in Canadian dollars. The same amount invested in long-term Canadian government bonds would have grown to $22,182. These comparisons highlight how your investment choices greatly affect your long-term returns.
Life in the Tax Lane – January 2026 Highlights!
There have been recent interesting court case decisions re OAS cancellation and the election to stop contributing to CPP. Bare trust T3 returns will not be required for 2026, while the trucking sector T4A penalty is set to apply for 2025. The proposed reduction to RRIF minimum withdrawals will not proceed, and ongoing CRA service problems are affecting persons with disabilities.
New 2026 LIF/RLIF Maximum Withdrawal Rates
The 2026 maximum withdrawal percentages for federally regulated locked‑in RRIFs (LIFs and RLIFs) are now available from OSFI. The maximum at age 60 has increased from 5.4% in 2025 to 6.0% in 2026. Plan your income for the year ahead!
2025/2026 Donation Tax Credit Rates Across Canada
Provincial and territorial donation tax credit rates vary widely across Canada. For the first $200 of donations, rates range from about 4% to 60%. For amounts over $200, the rates for most provinces and territories are between 11.5% and 24%. Higher federal rates apply to income taxed in the top bracket, and both BC and Quebec also apply higher rates at higher income levels. These combined credits can significantly increase the tax benefit of charitable giving.
Pension Income Splitting: What Couples Need to Know
Pension income splitting can reduce a couple’s overall tax bill by allowing up to 50% of eligible pension income to be transferred to a spouse on the tax return. This article explains who qualifies, which types of pension income are eligible, and how the election is made. It also covers Quebec’s age 65+ rules and what to do if you need to file a late or amended election.
Quebec Detailed Tax & RRSP Planner (2025/2026) - Great Tax Planning Tool!
This detailed calculator lets you estimate 2025 or 2026 taxes for both spouses in Quebec. Enter all types of income, deductions, and credits to see how pension splitting, RRSP contributions, and other factors affect your taxes. It also shows your marginal tax rate and highlights potential savings—making it a powerful tool for tax planning.
Filing Your Taxes: What’s New & What’s Free
CRA no longer mails paper tax forms automatically, but you can download them online or order by phone. Filing online is recommended—and there are many free options. If you have a simple return and low income, SimpleFile by Phone may be helpful. Free tax clinics are available for eligible individuals and families through the Community Volunteer Income Tax Program. For more complex returns, professional tax preparation is advised.
See the Tax Benefit of Eligible Dividends in 2025/2026
Curious how much tax you can save with eligible Canadian dividends, even if your OAS clawback goes up? This easy calculator compares dividend income to other types of income for every province and territory except Quebec, and now includes 2026 rates.
Quebec Reduces QPP and QPIP for 2026
The Quebec 2025 Fall Economic Update announced a reduction in the base QPP rate for 2026, from 5.4% to 5.3%. At the same time, the QPIP rate for 2026 was reduced by 13%.
2027 RRSP Contribution Limits, 2026 MPP, DB, and DPSP Limits
The 2027 RRSP contribution limit is increased 4.7% to $35,390, up from $33,810 for 2026. The 2026 Money Purchase Plan limit is $35,390, the Defined Benefit is $3,932.22, and the Deferred Profit Sharing Plan is $17,695.
November 2025
2025/2026 Detailed Tax & RRSP Savings Calculator - Great Tax Planning Tool!
Calculate 2025 or 2026 taxes for both spouses. Input all types of income, expenses and tax credits. Calculates pension splitting, OAS clawback, savings from RRSP contributions, your marginal tax rate, and much more.
Life in the Tax Lane December 2025: Important Budget Updates!
10-minute video topics - Budget 2025 benefits for taxpayers:
TFSA Withdrawals: Why Timing Matters
Did you know that taking money out of your TFSA this year increases your contribution room next year? If you’re planning a withdrawal, do it by December 31 so your room grows on January 1, 2026.
Did you know that if you had working income of $11,511 to $165,430 in 2024, and were at least 25 in 2025, you can get a refund of part of your tuition via the Canada Training Credit? The available credit grows by $250 each year that you have work income within the thresholds for that year.
At-a-Glance: 2025/2026 Canadian Tax Rates
Our 2025/2026 tax rate tables provide combined federal and provincial/territorial marginal tax rates for capital gains, both types of Canadian dividends, and other income. If you want to know your own marginal tax rates for 2026, the Detailed Calculator is coming soon!
UHT Eliminated - No Tax After 2024!
The 2025 Federal Budget proposes to eliminate the Underused Housing Tax (UHT) for all years after 2024. Penalties and interest will continue to apply for failing to file or pay the UHT for 2022–2024, but this marks the end of a program that was poorly planned & poorly implemented, and was costly to the public.
Simple Tax Calculator: Compare Rates Across Canada
Try our easy-to-use Basic Tax Calculator for 2026 and earlier. Instantly compare taxes payable and marginal rates across all provinces and territories—for all types of income. It’s a fast, easy way to get an estimate of your tax situation.
Tax-Free Canada Carbon Rebate For Small Businesses - Final Payment
The Dept. of Finance has announced the rates for the final payment, which CRA will begin issuing before the end of the year. The per-employee rates vary from $56 in PEI to $153 in Saskatchewan.
Up to $20,000 for Accessible Home Upgrades in BC
The BC Rebate for Accessible Home Adaptations (RAHA) helps low-income seniors and people with disabilities make their homes safer and more accessible. Eligible homeowners, renters, and landlords can receive up to $20,000 per home to support modifications that promote independent living.
Are You a "Misclassified Employee"? - Watch out for CRA!
Did your employer require you to incorporate? Is that employer your only client? If so, you could be a misclassified employee, or a personal services business (PSB) with a higher tax rate and limited expense deductions. These situations will be under investigation by CRA.
2026 CPP Contributions Up Almost 5% from 2025
The employee/employer maximum for 2026, including enhanced CPP is $4,646.45, and for self-employed the maximum is $9,292.90.
2026 QPP Contributions Up Almost 5% from 2025
The employee/employer maximum for 2026, including enhanced CPP is $4,966.40, and for self-employed the maximum is $9,516.80. This was subsequently reduced by the Quebec 2025 Fall Economic Update.
2025 Federal Budget - November 4, 2025
Unbelievable deficits; Some good things: cancellation of UHT program, 100% write-off of manufacturing and processing capital assets, Top-Up Tax Credit; Proceeding with many previously-announced measures; many other measures.
October 2025
Life in the Tax Lane – November 2025: Fast Facts, Big Changes
This month’s Life in the Tax Lane packs important updates into 10 minutes:
Corporate Tax Returns Must Be Filed Electronically!
For tax years starting in 2024 or later, T2 corporate tax returns must be filed online, with few exceptions. $1,000 penalties are being charged by CRA for paper-filed returns.
Capital Loss Transfers Between Spouse
Capital losses can be transferred to a spouse under the superficial loss rules—but timing matters. To make this work, your spouse must hold the shares for more than 30 days after your sale. Done right, this can help optimize your combined tax position.
Ontario Proposes Full HST Rebate on Homes Under $1M
The Ontario government is proposing to eliminate the full 8% provincial portion of the HST on new or substantially renovated homes valued up to $1 million. This, combined with the proposed federal rebate, increases the possible rebate to $130,000, making home ownership a bit more affordable.
TFSA Room Hits $109K in 2026—Are You Maxed Out?
The 2026 TFSA limit is $7,000, bringing total room to $109,000 for those born in 1991 or earlier who’ve never contributed. That’s a powerful tax-free savings opportunity—don’t let it go unused!
Inflation Adjustment: 2026 Tax Credit Changes Across Canada
Tax brackets and credits are rising in 2026 to help offset inflation—but not all provinces are completely on board. Federal indexation is set at 2.0%, while provincial factors range from 0% to 2.2%. Find out which regions are adjusting and which ones are falling behind.
Will 2025 Be the Year of Tax Reform?
CPA Ontario has proposed 20 bold fixes to Canada’s tax system—including a long-overdue simplification of the Income Tax Act. Will Budget 2025 on Nov 4, 2025 act on any of these recommendations?
Thinking of gifting or loaning income-producing property to your spouse or child? You might still be on the hook for the taxes. This article breaks down Canada’s attribution rules—how income and capital gains can bounce back to you, even after the gift is made. Learn how to avoid unexpected tax consequences when transferring assets to family.
Donating Capital Property Can Eliminate Capital Gains
If you have cash to donate and have unrealized capital gains on investments, donating the investments instead of the cash can eliminate the tax on the capital gain. You can always buy back the shares with the cash, increasing the ACB of your shares!
Canada Revenue Agency (CRA) Transitioning to Online Mail
When you give CRA your email address, this authorizes them to send you online mail instead of paper mail, even if you haven't registered for My Account. If you don't register, you won't receive that mai! Those with My Account may have selected paper mail, but many of these have been or will be transitioned to online mail even though paper mail was selected.
September 2025
Life in the Tax Lane October 2025
Topics in this month's fast-paced 10-minute video for Canadian Tax and Financial Professionals (but useful for everyone!):
Moving expenses can be deducted for eligible moves that allow you to be closer to a current or new job, to run a business, or to attend a post-secondary educational institute full-time. In a recent court case, the taxpayer successfully appealed by demonstrating that the CRA did not use the correct time of day to calculate the "shortest normal route" using Google Maps.
2026 Employment Insurance Rates
Maximum insurable earnings (MIE) for 2026 is $68,900, up 4.87% from $65,700 in 2025. The maximums payable by employees ($1,123.07) and employers ($1,572.30) for 2026 is up 4.2% from 2025, 4.07% for Quebec ($895.70 and $1,253.98). The Quebec rates are lower because they provide their own parental benefits.
2025 Federal Budget November 4, 2025
Finance Minister Champagne announced in the House of Commons on Sep 16, 2025 that the federal budget will be tabled on Tuesday, November 4th.
CRA Automatic Tax Filing Consultation
Would you like CRA to expand its automatic tax filing services? Do you have ideas on how they could make it easier, or how to avoid potential pitfalls? The consultation questionnaire will be available until October 9th.
Since the settlement date is 1 business day after the trade date (T+1), Wednesday December 30th will be the last trading date for 2025. Capital gains or losses from trades made after this date will be 2026 capital gains or losses, not 2025.
Voluntary Disclosure Program (VDP) Changes
Effective October 1, 2025, the VDP program will be less restrictive and more accessible. The revised program allows for up to 100% relief from penalties and partial relief from interest. If relief is provided, a taxpayer will not be referred for criminal prosecution.
BC Home Flipping Tax - Not Deductible From Income
The BC Home Flipping Tax is not deductible from income on your tax return, nor does it reduce a capital gain.
TaxTips.ca Acquisition Opportunity - No Longer Available
Big news for us! After years of building TaxTips.ca into one of Canada’s most trusted free sources for tax and financial information, we’ve decided it’s time to sell.
August 2025
Quebec Income Tax & RRSP Savings Calculator
Now includes Adoption and Volunteer tax credits. Do your 2025 tax planning easily! The calculator includes all types of income and most tax deductions and tax credits, as well as Alternative Minimum Tax (AMT).
Life in the Tax Lane September 2025
Topics in this month's fast-paced 10-minute video for Canadian Tax and Financial Professionals (but useful for everyone!):
Federal Draft Legislation August 15, 2025
Feedback on the draft legislation must be provided by September 12, 2025. The legislation pertains to previously announced tax measures, but there are some changes.
Volunteer Firefighter or Search and Rescue Tax Credit
A federal non-refundable tax credit of $6,000 at lowest tax rate is available as of 2025. Non-refundable tax credits are also available in BC, MB, NB, NL, NU, SK, and QC. Refundable tax credits are available in NS and PE.
2024/2025 Detailed Canadian Income Tax & RRSP Savings Calculator
We've been told by many that this very detailed calculator is awesome and that no other calculator compares to it. Do your 2025 tax planning easily! The calculator includes all types of income and most tax deductions and tax credits, as well as Alternative Minimum Tax (AMT).
Multiple Jobs? Too Much Tax? Change Your TD1 Form
You should be claiming zero deductions on your TD1 form for any additional job. Read the back of the form for instructions.
The CPP death benefit of $2,500 is increased in 2025 to $5,000 for certain taxpayers. A Survivor's Pension is available to the spouse, and a Children's Benefit is payable to dependent children of disabled or deceased CPP contributors.
Do You Borrow to Invest? It's Not for Everyone!
Earlier this year we eliminated our margin debt for various reasons, including the current investment uncertainty and some financial obligations for the next few years. If you are a novice investor, you should not be borrowing to invest. If you are already borrowing to invest, make sure you're not overextended, and don't forget that markets can easily have a large drop very quickly!
Thinking of Buying a Home? Open an FHSA Now!
If you're planning to purchase a home within the next 15 years, an FHSA is a must-have. You can contribute up to $8,000 annually and deduct it from your income — and when you’re ready to buy, withdrawals are completely tax-free.
TaxTips.ca August 2025 Newsletter
We have a short newsletter this month, but still lots of information, including several comparisons of tax payable in every province and territory.
July 2025
Up to 1/2 of eligible pension income may be allocated to a taxpayer's spouse on the tax return. This may result in a pension tax credit for the spouse. Eligible pension income includes several kinds of income, but not CPP or QPP, OAS, retiring allowances or RRSP withdrawals (except annuity payments).
Capital Gains Deduction and the Tax Return
In order to claim this deduction for the Lifetime Capital Gains Exemption (LCGE), Forms T657 and T936 (Cumulative Net Investment Loss) must be completed, each of which may require decades of financial data, depending on the taxpayer.
2024/2025 Detailed Canadian Income Tax & RRSP Savings Calculator
This calculator includes most types of income, deductions and tax credits, and now includes the Capital Gains Deduction. Plan ahead to determine your tax liability for 2025.
Life in the Tax Lane August 2025
Topics in this month's fast-paced 10-minute video for Canadian Tax and Financial Professionals (but useful for everyone!):
See comparisons of taxes payable in each province & territory for different levels of income from:
Where does your province stand in the rankings? Are you being overtaxed?
Top 2025 Marginal Tax Rates in Canada
See the top rates for each province & territory for Canadian eligible & non-eligible dividends and other income, as well as the average tax rates for $100k of other income and $100k of employment income.
Canada Carbon Rebate for Small Businesses - Not Taxable
Draft legislation was released on June 30, 2025, to ensure that the rebate would be tax-free. These rebates were received for the 2019-20 to 2023-24 fuel charge years. The final payment is for the 2024-25 fuel charge year. Information on tax return amendments for prior years will be available once (if) the legislation receives Royal Assent.
June 2025
Online Mail is Now the Default for Businesses
Existing businesses with either a My Business Account OR an authorized representative through CRA's Represent a Client now receive most correspondence online through My Business Account. Paper mail can be requested through My Business Account or by mailing a form to CRA. This is an issue for businesses without a My Business Account that rely on an authorized representative, as they will no longer receive postal mail.
How Are RRSPs and RRIFs Taxed at Death?
Generally, the RRSP or RRIF property's fair market value is included in the deceased's income for the final tax return. However, if the property is transferred directly to a qualifying sole survivor by December 31 of the year following the year of death, this can be done on a tax-free basis.
Life in the Tax Lane July 2025
Topics in this month's fast-paced 10-minute video for Canadian Tax and Financial Professionals (but useful for everyone!):
GST Credit Amounts for July 2025 to June 2026
The GST/HST credit starting July 2025 is based on 2024 tax returns. Canadian residents are eligible once they turn 19, so the 2024 tax return should be filed by all 18-year-olds, even if they have no income. Depending on income, a single person could receive up to $533 for the year.
Track Your Own TFSA Contributions!
Although 2025 contribution room is finally available in My Account for most individuals, it does not include any contributions you've made in 2025. Do not rely on CRA information, but keep accurate records yourself!
Optimizing Your Donation Tax Credit
Our tax calculators will help you optimize your donation tax credit, alerting you if you exceed 75% of your net income or don't fully utilize all your donations. Works for the federal and all provincial and territorial tax credits.
If you don't agree with a Notice of Assessment from CRA, and a simple phone call to them doesn't resolve things, file a Notice of Objection within 90 days, even if they say you don't need to. Timing is everything!
May 2025
First-Time Home Buyers GST Rebate (FTHB)
The FTHB eliminates the GST for first-time home buyers on new homes up to $1 million, and reduces the GST for first-time home buyers on new homes between $1 million and $1.5 million.
Our tables of marginal tax rates for all provinces and territories have been revised to reflect the reduction of the lowest federal tax rate from 15% to 14.5% for 2025.
Life in the Tax Lane June 2025
Topics in this month's fast-paced 10 minute video for Canadian Tax and Financial Professionals (but useful for everyone!):
Canadian Tax Calculators Updated for Reduced Tax Rate
The following income tax calculators for all provinces have been updated for reduced 2025 federal tax rate: Detailed Canadian Tax Calculators; Basic Income Tax Calculator, and Investment Income Tax Calculators.
Government gross debt exceeds 100% of GDP in every G7 country except Germany. When household debt is added, the total debt exceeds 200% of GDP in Canada, Japan and the US.
2025 Tax Rate Reduction and First-Time Home Buyers' GST Rebate
A Notice of Ways and Means Motion was tabled on May 27th to reduce the lowest tax rate to 14.5% for 2025 and 14% for 2026. The Motion also eliminates GST for first-time home buyers on new homes valued up to $1 million, and reduces the GST for first-time home buyers on new homes valued between $1 million and $1.5 million.
If you only pay the minimum on your credit card balance every month, the unpaid balance can double within 4 years due to compounding interest.
Which is Better - RRSP, TFSA, or FHSA?
Don't own a home and hope to buy one in the next 15 years? An FHSA may be the best option. In the lowest tax bracket and no plan to buy a home? A TFSA may be the best option. The choice depends on your own financial situation.
Ontario 2025 Budget - May 15, 2025
The 2025-26 projected deficit has increased from $4.6 billion to $14.6 billion.
The only personal income tax measure in the budget is the proposal for a refundable fertility treatment tax credit, which would provide a tax refund of up to $5,000 per year, with the fertility treatments also claimable as a medical expense.
2025 Proposed Legislation - Personal Tax Rate Reduction
There is a proposal to reduce the lowest personal tax rate from 15% to 14% effective July 1, 2025, resulting in an effective tax rate of 14.5% for 2025. The rate to be used in most personal tax credit calculations will be reduced to the same rate. This will be most beneficial for those with no tax credits other than the basic personal amount (BPA), and can cause a tax increase for those with many non-refundable personal tax credits.
GST/HST New Housing Rebate for Change in Use to Principal Residence
The change in use of a property from income-producing such as short-term rentals to a principal residence may be deemed to be a substantial renovation and eligible for the New Housing Rebate, either for the current owners or for a buyer of the property.
Online Mail Becoming the Default for Businesses
Effective May 12, new business or program account registrations will
receive most correspondence online through My Business Account.
Starting June 16th, the same will happen for existing businesses that
either have a My Business Account OR who
have authorized a representative through CRA's Represent a Client. Paper mail
can be requested either through My Business Account or by submitting a form by
mail to CRA.
April 2025
Life in the Tax Lane - May 2025
Topics in this month's fast-paced 10 minute video for Canadian Tax and Financial Professionals (but useful for everyone!):
Up to 4 tax returns may be required for a deceased taxpayer. The date of death is reported on the "final" tax return. If it is mistakenly reported on the living spouse's tax return, CRA may think the living spouse is deceased. Benefit payments to the living spouse may be stopped as a result.
Late Filing of a Tax Return / Penalties and Interest
CRA is granting relief from penalties and arrears interest until June 2, 2025, for personal tax return (T1) filers reporting capital dispositions (gains or losses) on Schedule 3. This relief is not extended to spouses of impacted filers.
Although many tax returns can not yet be filed electronically, and many tax slips are still missing, no further relief has been announced.
Shareholder and Employee Loans and Their Tax Implications
The prescribed rate for these loans will be reduced from 4% to 3% effective July 1, 2025. The same prescribed rate applies for loans to a spouse or minor child created after July 1, 2025.
2025 Provincial/Territorial Political Contribution Tax Credits
The only change for 2025 is the annual indexation increase for the Ontario thresholds.
2025 and Earlier Basic Income Tax Calculator
This super-simple calculator provides tax totals and marginal tax rates for dividends, capital gains and other income for all provinces and territories. Compare different scenarios easily! Updated for AB, NS & PE 2025 budget changes.
2025 Corporate Income Tax Rates - Canada and Provinces/Territories
The only 2025 corporate income tax rate change thus far is for PEI. Effective July 1, 2025, their general tax rate is lowered to 15% and the business limit is increased to $600,000. The small business corporate income tax rate will remain at 1%.
Withdrawals For Home Buyer's Plan (HBP) or Lifelong Learning Plan (LLP)
Withdrawals from your RRSP from Jan 1 to Dec 31, 2024 for the HBP or LLP will be on a 2024 T4RSP, and must be reported on Schedule 7 of your 2024 tax return, even though they don't affect your income.
Repayments to Home Buyer's Plan (HBP) or Lifelong Learning Plan (LLP)
If you made repayments to your RRSP for the HBP or LLP from Mar 3/24 to Mar 1/25, make sure you report them properly on your 2024 tax return in order to not lose RRSP contribution/deduction room.
Missing and Duplicate Tax Slips on CRA Website
If you use Auto-Fill of Tax Return (AFR) to download slips for your tax return, be aware that many tax slips are missing, and there are reports of duplicate T4 slips. T4A slips were late and may still be missing, and T5008s for investments are missing.
Federal Election April 28, 2025
Please review the proposals and costed platforms from the Conservatives and Liberals. There is a lot of misinformation being shared on social media for and against both parties. Unfortunately, many people don't check facts before sharing these things.
There has been very little discussion in this federal election about the massive Canadian government debt, so we've updated our debt table.
Prince Edward Island 2025 Budget - April 10, 2025
PEI tax changes:
Claiming attendant care costs can be complicated, as they can be claimed as medical expenses or sometimes as disability supports deductions. The $10,000 limit for attendant care as medical expenses is per paying individual, not per patient, which makes cost sharing among supporting persons advantageous. There are 2 options when claiming attendant care costs as medical expenses for a person who qualifies for the disability amount.
Report the Sale of Your Principal Residence!
You are required to report the sale of real estate, including your principal residence. The maximum penalty for not filing is $8,000. Did you own your principal residence less than 1 year? Possibly taxable!
Newfoundland and Labrador 2025 Budget - April 9, 2025
There are no new taxes, tax increases, or fee increases. The Seniors' Benefit and its eligibility threshold will be indexed to the CPI. The provincial fuel tax is being reduced by 50%, and the 15% retail sales tax on home insurance is being eliminated.
Phishing Scam Targeting EFILERs
On April 8, 2025, CRA provided a reminder about an email phishing scan targeting the tax preparation community.
April 3, 2025 - Update from CRA on the availability of tax slips in Auto-fill my return and CRA portals
Beginning in January 2025, the CRA introduced a new validation process for organizations that submit information returns (like financial institutions and employers) to ensure the accuracy of the data they submit. While this change improves data quality, some issuers have had difficulties uploading tax slips, resulting in certain slips not appearing in My Account, Represent a Client, or the Auto-fill my return service as early as in previous years.
Refunds can be expected in about 2 weeks for EFiled, NetFiled or TeleFiled returns, about 4 weeks for paper-filed before April 15th, 6 weeks after that. Yes, your tax refund and/or benefits can be withheld, or your wages garnished, if you have an outstanding debt to CRA or a provincial or territorial government.
March 2025
Life in the Tax Lane - April 2025
Topics in this month's fast-paced 10 minute video for Canadian Tax and Financial Professionals (but useful for everyone!):
Alberta Supplemental Tax Credit
The purpose of the credit is to ensure that taxpayers with in excess of $60,000 of non-refundable tax credits do not pay more as a result of the reduction in tax rate for personal tax credits.
Canadian Election Tax Policy Updates
This is a very helpful guide to the tax policies announced by the 2 parties, which will be updated as soon as new announcements are made.
Quebec 2025 Budget - March 25, 2025
Nearly $3 billion in savings over 5 years will be achieved through tax expenditure reforms. These reforms include the January 1, 2026, elimination of the tax shield and political contribution tax credit, an increased luxury vehicle tax threshold, and the removal of EV/plug-in hybrid incentive exemptions.
Make Sure Your Tax Preparer Has All Your Tax Slips!!
Many 2024 tax slips are not yet available in CRA accounts. T3 and T5 slips are likely available online in your investment accounts, and you probably have your T4 and T4A slips. You are responsible for ensuring that all your income is reported!
Direct Deposit Changes For EFILERs and Taxpayers
Starting March 24, 2025, direct deposit registrations and changes will no longer be accepted by EFILE or by phone. My Account is the easiest way to do this, but it can also be done through your financial institution or by mail using the applicable form.
Manitoba 2025 Budget - March 20, 2025
The 2025 personal income tax thresholds and basic personal amount will not be indexed as planned, but will remain at 2024 amounts. The Homeowners Affordability Tax Credit maximum increases to $1,600 in 2026. Payroll thresholds for the Health and Post Secondary Education Tax Levy will be increased for 2026. The Volunteer Firefighter and Search and Rescue amounts are doubled for 2025 from $3,000 to $6,000.
Saskatchewan 2025 Budget - March 19, 2025
The tax measures announced were not new, having been previously detailed in the December 2024 Affordability Act, which included increases to the 2025 Basic Personal/Spousal Amounts and various other tax credits.
RRSP Contributions in 2025 up to March 3rd
Contributions made in 2025 up to March 3rd must be reported on your 2024 tax return, but do not have to be deducted for 2024. They will not be included as an overcontribution for 2024, and can be carried forward to be deducted in 2025.
Moving Expense Deductions & Tax Credits
You may be eligible for a deduction or tax credit!
New Brunswick Budget - March 18, 2025
No personal or corporate income tax changes were announced.
Canada Carbon Rebate (CCR) Final Payment April 2025
Individuals will start receiving their final payment of the CCR in April, as the carbon tax rate (fuel charge) has been reduced to zero effective April 1, 2025.
First FHSA Opened But No Contribution? File Schedule 15!
If you contributed more than $8,000 to your FHSA in 2024 because you opened the account in 2023 but did not contribute, CRA will not allow a deduction of more than $8,000 unless you filed Schedule 15 with your 2023 tax return. To correct this, file an amendment to your 2023 tax return.
GST/HST Input Tax Credits (ITCs) on Purchase of Passenger Vehicles
The ITC calculation depends on the ownership of the vehicle and the percentage the vehicle is used in commercial activities. For self-employed individuals, when the commercial use is greater than 10% and less than 90%, the ITC is based on the CCA claim for the vehicle (which depends on % of commercial use) and the GST/HST rate in effect at the end of each tax year.
5 provinces have Harmonized Sales Tax (HST). The only 2025 change thus far is a Nova Scotia rate reduction from 15% to 14%, effective April 1, 2025. 4 provinces charge GST plus their retail sales tax. Alberta and the 3 Territories charge only 5% GST.
Pay Your Own Disability Insurance Premiums! Self-Employed - Be Insured!
If you pay your own premiums, any benefits will be tax-free. If premiums are paid by your employer, any benefits will be taxable. If you are self-employed, disability insurance is vital!
Eligible Dependant / Equivalent to Spouse Tax Credit
This tax credit may be available for an individual with a qualifying dependant. An additional amount is available for infirm dependants. A dependent child can live outside Canada. If multiple families in the same dwelling have eligible dependants, only one household member can claim this credit.
Tax Treatment of Investments in Exchange-Traded Funds (ETFs)
Income from foreign ETFs is fully taxable, while Canadian ETFs may have various income types, including eligible dividends. Tax slips (T3 and T5s) are delayed in CRA accounts this year, so check investment accounts for faster access. Ensure that your tax preparer has all your slips!
Yukon 2025 Budget - March 6, 2025
Yukon is introducing a new fertility and surrogacy tax credit beginning in 2025, and is revising its legislation to align with the changes to the federal alternative minimum tax, also effective 2025.
Reporting Canada Carbon Rebate for Small Business (CCR-B) on the Tax Return
CRA has provided information, via CPA Canada, on how to report this taxable rebate on the T2 corporate income tax return.
BC 2025 Budget - March 4, 2025
The budget predicts a tripling of the provincial debt by 2028 from when the NDP were first elected in 2017. There were no personal income tax changes in the budget. Speculation and vacancy tax rates will increase effective January 1, 2026. Carbon tax increases 31.6% April 1, 2025.
This free tax preparation service is available to people with a modest income and a simple tax situation.
CEBA Loans - Forgivable Portion Repaid or Not Repaid
If and when the forgivable portion of a CEBA loan is repaid, it is deducted from income in the year it is repaid. If it is not repaid, there is no deduction.
February 2025
Life in the Tax Lane - March 2025
Topics in this month's fast-paced 10 minute video for Canadian Tax and Financial Professionals (but useful for everyone!):
Medical Expense Tax Credit (METC)
Topics: Who can claim?; What can be claimed?; Claims for former spouse; What if both spouse and common-law partner?; 12 month time period for expenses; Claim for deceased; Documentation; Calculation; Other eligible dependants.
Basic Canadian Income Tax Calculator
Updated for AB and NS 2025 Budgets, this super-easy calculator shows taxes payable for every province and territory. Enter eligible & non-eligible dividends, capital gains, and other income, see the marginal tax rates for each. Loved by tax professionals and financial planners for comparing 2 scenarios.
2024/2025 Detailed Canadian Income Tax & RRSP Savings Calculator
Updated for AB and NS 2025 Budgets, this detailed calculator will check your 2024 tax return and help with your 2025 tax planning!
The 2025 marginal tax rates have been revised to reflect the new tax bracket with a tax rate of 8%.
Alberta 2025 Budget - February 27, 2025
The budget introduces a new 2025 tax bracket for up to $60,000 of income at a rate of 8%. A supplemental non-refundable tax credit will be added when certain tax credits exceed $60,000. Education and locomotive fuel taxes will be increased.
Filing Your Personal Tax Return
Whether you are NETFILING your own tax return, having it prepared professionally, or mailing your return, you are responsible for the accuracy of the return. Using Autofill? You must ensure that all slips are reported, even if they haven't been received in your My Account yet.
Property Rental Issues / Expenses
Are you a landlord? Learn about allowable rental expenses, renting below FMV, rental losses, CCA and the principal residence exemption, change in use, capital vs expense and many other topics!
Nunavut 2025 Budget - February 24, 2025
No income tax changes were announced.
Records Retention By a Business or an Individual
Every person and business must keep records and books of account for a minimum of 6 years from the end of the latest year to which they relate. For capital assets or investments, this would be 6 years after the end of the year in which those assets are sold.
Nova Scotia 2025 Table of Marginal Tax Rates
The NS tax rate tables now reflect the 2025 increase in the Basic Personal Amount and elimination of the $3,000 supplement.
CRA Grants 1 Week Reprieve From Penalties for Information Returns Due Feb 28, 2025
Due to ongoing challenges with information return filing, CRA is granting relief from late-filing penalties if information returns such as T4s are filed by March 7, 2025, for those returns normally due on February 28, 2025. Hopefully their software problems will be solved long before then.
First-Time Home Buyers' Tax Credit (HBTC)
A tax credit based on an amount of $10,000 is available to first-time home buyers or for the purchase of a home for those with disabilities. The credit can be split between spouses.
New Brunswick 2025 Pre-Budget Consultations
The NB consultations are open until February 28, 2025.
Nova Scotia 2025 Budget February 18, 2025
The 2025 basic personal and spouse/eligible dependant amounts are increased from $8,744 to $11,744. The 2025 age amount is increased to $5,734. The supplements to these amounts are eliminated. Effective April 1, 2025, the small business tax rate is being reduced to 1.5%, the threshold for the lower rate is being increased to $700,000, and HST will be reduced by 1%.
Northwest Territories 2025 Budget February 6, 2025
No income tax changes were announced.
Multiple Jobs - Why Do I Owe so Much Tax?
You might not have completed your TD1 forms correctly, so the additional employers were not deducting enough tax. Personal tax credit amounts can only be claimed for 1 job if you work multiple jobs at the same time.
Federal 2025 Pre-Budget Consultations
The 2nd set of pre-budget consultations has been launched. Have your say until March 10, 2025. Completing the questionnaire takes only a few minutes.
Problems Filing 2024 T4 Returns
There have been many problems for those trying to submit T4 returns this year, whether using payroll software or CRA's WebForms. We provide an example of how we solved a couple of the problems with WebForms. Hopefully, all the problems will be resolved soon!
CPP Retirement Pension Calculator
This calculator compares the estimated value of your future CPP retirement pension based on 3 different starting dates, using an inflation factor and a rate of return you choose. Read the article before using the calculator!
Canada Child Benefit (CCB) and Disability Benefit Annual Amounts
The CCB starting July 2025 will be a maximum of $7,997 for each child under 6, and $6,748 for each child 6 to 17. The benefit is reduced for 2024 family income over $37,487, and further reduced for 2024 family income over $81,222.
How is Income Tax Calculated in Canada?
Indexation of personal tax thresholds and tax credits helps taxpayers avoid increased tax resulting from inflation, but not all provinces index these amounts. Federal and provincial taxes are calculated separately, but based on the same taxable income, except for Quebec. Tax credits are applied in a specific order, sometimes resulting in some credits being forfeited.
A US federal estate tax return must be filed if a deceased Canadian resident, who is not an American citizen, owned US-situated assets exceeding $60,000 US in fair market value at the time of death. For most Canadians, the US tax payable will be zero, but the return still must be filed. Our US Estate Tax Calculator can help you estimate if you will owe any US estate tax.
Should You Contribute to Your TFSA, FHSA or RRSP?
If you're in the lowest tax bracket, use TFSAs first! If not, read our article and then make use of the TFSA vs RRSP calculator to help you decide. If you're eligible, an FHSA might be the best choice.
TFSA: Name Your Spouse As Successor Holder, Not Beneficiary!
When a spouse is a TFSA beneficiary the TFSA does not automatically become the TFSA of the spouse in a tax-free manner. It can be transferred to their own TFSA within a certain time limit, but any increase in value after death will be 100% taxable. This is not the case if the spouse is named as the successor holder.
Canada Carbon Rebate (CCR-B) for Small Businesses is Taxable
Canada Revenue Agency has confirmed that in the absence of draft or enacted legislation to make the CCR-B tax-free, it is considered taxable when received.
Quebec Refundable Work Premium Tax Credit
People with employment or self-employment income may be eligible for the work premium, with a higher adapted work premium for those with severely limited capacity for employment.
Quebec Indexed Amounts for 2025
Quebec's 2025 tax thresholds, personal tax credit amounts and some deductions were increased by 2.85% for inflation.
January 2025
Investment Income Tax Calculators
For all provinces and territories, these easy calculators show the tax advantage of eligible Canadian dividends over other income. They have been updated to remove the increase in the capital gains inclusion rate.
Detailed Canadian and Quebec Income Tax Calculators
These very detailed calculators have been modified to remove the increase in the capital gains inclusion rate. Check your 2024 tax return, start your 2025 tax planning!
This super-simple calculator for all provinces and territories is very useful for tax practitioners and financial planners. It has been modified to remove the increase in the capital gains inclusion rate.
Capital Gains Inclusion Rate Increase Deferred to 2026
On Jan 31, 2025, the Department of Finance announced that the inclusion rate increase would not happen until January 1, 2026. The announcement indicated that the LCGE increase is still effective June 25, 2024, and that the Canadian Entrepreneur's Incentive will still be introduced for 2025.
Life in the Tax Lane February 2025
Topics in this month's fast-paced 10 minute video for Canadian Tax and Financial Professionals (but useful for everyone!):
Transfer Shares to a Registered Account, But Not at a Loss!
You can make your RRSP, TFSA, or FHSA contribution with an in-kind transfer of shares. However, if you transfer shares with a loss, the loss will not be deductible. If you transfer shares on which there is a gain, you will have a taxable capital gain.
Provincial Budget 2025 Consultations in Progress
Manitoba and Quebec budget consultations are underway, with a deadline of February 21, 2025 for Manitoba, but no deadline indicated for Quebec. The deadline for Quebec's consultation last year was February 2, 2024.
Transfers From LIF to RRIF - More Unlocking!
One can "unlock" funds in a LIF each year by transferring the difference between the maximum and minimum withdrawals to a RRIF of the same annuitant, with no tax withheld. Some provinces use the previous year investment returns in the LIF to calculate the maximum withdrawal. If you had significant returns last year you may be able to unlock a significant amount!
Election to Stop Contributing to Canada Pension Plan (CPP)
The process to stop contributions to CPP differs for employees and self-employed individuals. Employees must complete and submit form CPT30. Self-employed make the election on Schedule 8 of their tax return. The election can be made by CPP retirement benefit recipients after age 65, even if the person is still working.
2024 Donation Tax Credit Deadline Extended to February 28, 2025
Donations made up to and including February 28, 2025 by individuals or corporations will be eligible for a 2024 tax credit. Draft legislation has been released by the Department of Finance, and CRA has confirmed it will administer the extension. Donations of shares are not eligible for the extension.
Saskatchewan Affordability Measures
SK recently passed legislation to increase most personal tax credits, and cancel the 2025 and later changes to the non-eligible dividend tax credit.
My Business Account - Is Your Email Address Up To Date?
CRA will transition to online mail, to replace paper mail, in spring of 2025.
BC Home Flipping Tax Now in Effect
Someone who sells a housing unit or a residential property in BC within 2 years of the purchase must file a Home Flipping Tax Return within 90 days of the sale of the property, with some exceptions.
Employee Operating Cost Benefit
For employees using an employer-provided automobile the operating cost benefit will increase to $0.34 per km for 2025, and to $0.31 per km for those employed principally in selling or leasing automobiles.
Passenger Vehicle Expense Limitations
The CCA ceiling for non-ZEVs increases to $38,000 for 2025, with the ceiling for ZEVs unchanged at $61,000. Deductible leasing costs increase to $1,100 per month, with the maximum allowable interest deduction unchanged at $350 per month.
2025 Tax-Free Motor Vehicle Allowances
The limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes will increase to $0.72 per km for the first 5,000 km, and to $0.66 per km for each additional km. For the territories, the limits will be $0.76 and $0.70. This does not apply to self-employed persons, who must track all vehicle expenses and keep a trip log.
2025 Provincial/Territorial Budget Consultations
Consultations are in progress for Alberta (Jan 12 deadline), Manitoba (no deadline noted), Newfoundland and Labrador (Jan 6 deadline), and Ontario (Feb 3 deadline). Follow our Provincial/Territorial Budgets page for future updates.
Prior Years:
Revised: February 01, 2026