Tax Filing– Two words that have the power to cause anxiety in even the most well-organized individual. But it doesn’t have to be that way. If you apply the right knowledge, a little planning, and some helpful tips from experts, you can turn tax filing in 2025 into a chance for you to take control of your financial life. As the tax season of 2025 is approaching, it is high time to get updated with the new Canadian tax laws, due dates, and ways to make your filing for the year simpler and more profitable. Whether you are completing your tax return or are responsible for the taxes of a business this guide will help you through it all.
What is a Tax Return?
The mandatory paperwork that individuals or corporations making income in Canada must submit to the Canada Revenue Agency or CRA each fiscal year is tax returns. The total of the prior year’s (January through December) tax credits, taxable income, and additional details on those two things are reported in the return papers. The Canadian government calculates the correct tax amount that individuals and corporations must pay using the return document. A refund (money owed to the individual) or an amount owed might be the outcome of filing a return with the federal government. Failure to file a tax return carries a penalty.
Who Must Submit a File?
A tax return is required if:
- You live in Canada permanently
- Residents of Canada
- Immigrants who recently arrived in Canada
- Pay taxes for a deceased person.
- Natives
- You leave Canada temporarily or permanently
- Factual residents
- Government personnel
- Part-time Workers in the USA
- People who depart Canada permanently
- You live in Canada temporarily
- non-residents
- non-residents earning rental income
- Foreign students
- Temporary employees
Deadlines To Keep In Mind
Individual tax returns for any given year in Canada are typically due by April 30 of the subsequent year. Although there are a few exceptions, no clause would allow this date to be extended generally.
- Self-employed people and their spouses have until June 15 of the following year to file their tax returns. On the other hand, any unpaid Harmonized Sales Tax or Goods and Services Tax is due on April 30.
- Deceased persons’ tax returns must be submitted by the regular filing deadline or, if later, six months following the date of death.
- Non-residents who want to file per section 217 have until June 30 of the subsequent year to submit their tax returns.
- When a regular due date occurs on a Sunday or holiday, the Interpretation Act moves the deadline for all individual returns to the following business day.
- In an emergency, such as flooding, the Federal Finance Minister may decide to extend the deadline.
What’s New for the 2025 Tax Year?
Following are some updates for the tax year 2025 which every Canadian filing taxes should know about:
- Updated Federal Tax Brackets
The 2.7% inflation rate has been applied to all five federal income tax bands for 2025.
| Income | Tax Percentage |
| zero to $57,375 | 15% |
| above $57,375 to $114,750 | 20.5% |
| above $114,750 to $177,882 | 26% |
| above $177,882 to $253,414 | 29% |
Additionally, every province has a unique set of tax brackets, the majority of which are likewise indexed to inflation using the criteria specific to that province.
- Premiums for Employment Insurance
With an employee contribution rate of 1.64% (1.31% for Quebec) and an aggregate contribution of $1,077.48 ($860.67 for Quebec) in 2025, maximum insurable earnings of $65,700, employment insurance (EI) premiums are also increasing.
- Limit of a Tax-Free Savings Account
In 2025, the $7,000 tax-free savings account or TFSA cap will not change. This is because the TFSA limit is only raised to the next greatest $500 increment when the total impact of the yearly inflation adjustments is made after 2009, the year the TFSA was established. The maximum is increased to $7,000, the nearest $500 increase since the indexed TFSA value for 2025 is currently $6,963.
- Limit of the Registered Retirement Savings Plan
In 2024, the 2025 Registered Retirement Savings Plan or RRSP dollar limit was $31,560; it is now $32,490. Naturally, you can only contribute 18% of your 2024 earned income—including from (self-)employment and rental income—to your RRSP in 2025, up to the $32,490 RRSP cash limit plus any unused 2024 RRSP contribution capacity, according to any pension adjustments.
- Security in Old Age (OAS)
The 2025 OAS repayment level, if you earn Old Age Security, is $93,454; if your taxable income exceeds this amount, your 2025 OAS will be lowered.
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5 Ways To Do Your File Your Taxes
You can file your taxes in several ways, including ones that are free or cost different amounts, or others that the CRA invites you to use:
- Certified Tax Software (Electronic Filing)
To compute and electronically file your taxes, use tax software that has been approved by the CRA. You can download or install it on your computer, smartphone, or tablet, or you can do it online.
- Usage: Residents of Canada
- Cost: Free or subject to change
- Time: 2 weeks
- Hire a Representative
Permit a friend, relative, or accountant to handle your tax preparation and account access on your behalf.
- Usage: Anyone
- Cost: Free or subject to change
- Time: 2 weeks
- Community Volunteer Tax Clinic
To have a volunteer finish your taxes, look for a free tax clinic.
- Usage: low-income individuals and simple tax circumstances
- Cost: Free
- Time: 2 weeks
- Tax accountant
A discounter is a tax preparer who, before filing your tax return, computes and immediately pays you a discounted tax refund.
- Usage: Anyone
- Cost: May differ
- Time: Discounted refund is paid immediately
- Paper Tax Return
Fill out a paper tax return by hand and submit it.
- Usage: Anyone can make use of
- Cost: Free
- Time: 8 weeks
What Documents Do You Need for Tax Filing in Canada?
When you submit your taxes online, you will need specific forms and supporting documentation to finish your return.
Individual Data
To begin, to prepare a tax return, you must be sure to have the following items on hand:
- Your spouse’s, your own, and any dependents (if any) Social Insurance numbers
- Family members’ birth dates
- Net income levels for your spouse and any dependents for whom you are claiming credits
- Installment payment amount to CRA
- Your access code for NETFILE
Income Slips
Below is a list of the various forms you might need to fill out, depending on your income.
- Employment
- RL-1 Employment and Other Income (QC only)
- T4 Statement of Remuneration Paid
- Self-Employment
- T2125, T4002 Independent Contractor Income from Farming, Fishing, Commissions, Professionals, and Businesses
- T5013 Partnership Income Statement
- Investments and Savings
- T3 Statement of Trust Income Designations and Allocations
- T5 Statement of Investment Income
- T5008 Securities Transaction Statement
- Retirement
- T4A: Pension, Annuity, Retirement, and Other Statements
- Statement of Canada Pension Plan Benefits T4A(P)
- T4RIF Income statement from a Registered Retirement Income Fund
- T4A (OAS) Old Age Security Statement
- T4RSP RRSP Income Statement
2025 is YOUR YEAR: File Your Taxes With No Worries!
It doesn’t have to be difficult to navigate the intricacies of tax filing if you have the correct advice. We at ClearWealth know how important it is to file your taxes correctly. You can rely on us to take care of all your tax requirements because of our meticulous attention to detail, dedication to accuracy, and timely service, allowing you to concentrate on the things that matter. Our staff is ready to help you have a stress-free 2025 tax season, whether you need assistance with strategic planning, tax filing, or just want professional guidance.
Don’t wait until the last minute-Contact ClearWealth Accounting Advisory. Call us at (437) 290-5117 or email info@clearwealth.tax for more information.
