Tax Season 2025: Essential Tips for Canadians
Tax season is here! Whether you're filing early to maximize your refund or making sure you don’t miss out on valuable deductions, understanding the latest tax updates can save you money and stress. Here’s everything you need to know for the 2025 tax-filing season, including important deadlines, new tax changes, and smart filing tips.
Key Tax Deadlines for 2025
Mark your calendar with these important dates:
- February 24, 2025 – The Canada Revenue Agency (CRA) starts accepting tax returns.
- April 30, 2025 – Filing deadline for most individuals and final date to pay any taxes owed.
- June 15, 2025 – Deadline for self-employed individuals and their spouses (but taxes owing must still be paid by April 30).
Top Tax Tips to Save Money & Avoid Hassles
1️⃣ File Early & Stay Organized
The earlier you file, the sooner you get your refund! Gather all your tax slips (T4s, RRSP contributions, investment income statements, and medical receipts) in one place. If you file online, CRA’s Auto-Fill My Return can automatically pull much of your information.
2️⃣ Maximize Your Deductions & Credits
Don't leave money on the table! Here are some key deductions and credits you may qualify for:
✅ Basic Personal Amount (BPA) – Increased to $15,705, meaning Canadians earning up to this amount won’t owe federal taxes.
✅ Medical Expenses – Claim eligible health-related costs like prescriptions, dental care, and travel for medical treatment.
✅ Home Accessibility Tax Credit – Seniors and those with disabilities can claim up to $20,000 for home modifications.
✅ Multigenerational Home Renovation Tax Credit (MHRTC) – Get $7,500 if you're building a secondary unit for a family member.
✅ Pension Income Splitting – Seniors can split eligible pension income with a spouse to reduce overall taxes.
3️⃣ Watch Out for New Tax Changes
Several major tax updates could impact your return:
Capital Gains Tax Changes – Starting January 1, 2026, capital gains over $250,000 annually will be taxed at two-thirds instead of one-half.
Home Buyers’ Plan (HBP) Expansion – First-time homebuyers can now withdraw up to $60,000 from their RRSP, up from $35,000.
Alternative Minimum Tax (AMT) Updates – High-income earners may see changes in how their taxes are calculated.
4️⃣ Use the Right Tools & Resources
To make tax filing easier, take advantage of CRA-approved tax software and online services:
CRA My Account – Track tax balances, benefits, and direct deposit refunds.
Tax Software – Use tools like TurboTax or Wealthsimple Tax to simplify filing.
Free Tax Clinics – If you have a modest income, you may qualify for free filing assistance.
Find free tax clinics and CRA services
5️⃣ Beware of Tax Scams
The CRA will never demand payment via Bitcoin, e-transfer, or gift cards. If you receive a suspicious call or email, verify through CRA’s official website before providing any personal information.
How to protect yourself from tax fraud
Make Tax Season Stress-Free!
By filing early, keeping track of deductions, and using CRA’s online tools, you can make tax season smooth and hassle-free. Need help? Consider working with a tax professional or using online resources to maximize your return.