These tax code changes can have significant implications for your financial planning and compliance. It’s essential to stay informed and consult with a tax professional to ensure you are taking full advantage of available tax benefits and meeting all tax obligations.
For 2025, federal income tax brackets are increasing by 2.7% to account for inflation. This means that the tax rates will be as follows:
The proposed increase in the capital gains inclusion rate to 67% from 50% has been deferred until 2026. However, the Lifetime Capital Gains Exemption (LCGE) has been increased to $1.25 million for eligible capital gains realized on or after June 25, 2024.
Starting January 2025, there are changes to how information returns are filed electronically. The T619 electronic transmittal record has been updated, and submissions are now restricted to a single return type. New online validations will help identify discrepancies before submission.
The Canada Revenue Agency (CRA) is transitioning to online mail for most business correspondence. Businesses should ensure their email addresses are up to date in My Business Account to receive notifications
Until February 15, 2025, there is a temporary tax holiday on items like prepared foods, snacks, restaurant meals, takeout or delivery, alcoholic beverages, and children’s clothing. This measure aims to provide relief by exempting these items from GST/HST
The RRSP contribution limit for the 2025 tax year has increased to $32,490, providing individuals with more opportunities to save for retirement
