Tax Return Changes For 2025 In Canada

Tax rules change every year and 2025 tax year is no exception. We have consolidated all the tax changes by province for your easy consumption. Review the federal change and the province specific changes applicable to you. If you have any questions, you can Contact Us with subject ‘new tax changes’.

Federal Tax Changes

Change to lowest individual income tax rate

The lowest individual income tax rate will be reduced from 15% to 14.5% for 2025. Most non-refundable tax credits are calculated using the lowest individual income tax rate. The effective tax rate of 14.5% will apply to those non-refundable tax credits for 2025.

Top-up tax credit

Our program will automatically calculate this new credit if you are claiming certain non-refundable tax credits that are affected by the reduction to the lowest federal tax rate from 15% to 14% for 2025. The top-up tax credit (TTC) effectively restores the value of these non-refundable tax credits back to 15% for the portion that is more than the first income tax bracket threshold. You can claim this credit if the total of your non-refundable tax credits is more than $57,375.

Canada Carbon Rebate (CCR) removed

Canada Carbon Rebate has been removed for 2025.

Digital news subscription expenses removed

Tax credit for digital news subscription expenses has been removed for 2025.

Form T2017 (Summary of Reserves on Dispositions of Capital Property) updated

Form T2017 has been updated to include reserves for dispositions of property under a qualifying business transfer (QBT) or a qualifying cooperative conversion (QCC) for 2023.

Form T2038(IND)(Investment Tax Credit (Individuals) updated

Starting with the 2025 tax year, the recapture of the Investment tax credit for child care spaces will no longer be available.

Form T2048 (Capital Gains Deduction for Qualifying Business Transfer or Qualifying Cooperative Conversion) updated

The calculation of the capital gains deduction for qualifying business transfer (CGD for QBT) has been enhanced to account for amounts that reduce the deduction. Moreover, since it essentially shares the same calculation as the capital gains deduction for qualifying cooperative conversion (CGD for QCC), the two will be claimed together as the CGD for QBT or QCC.

Line 30000 – Basic personal amount

This has increased for most taxpayers to $16,129 whose income is less than $177,882. If your income is more than $253,414, you can claim basic personal amount of $14,538.

Line 30300 – Spouse or common-law partner amount

This has increased for most taxpayers to $16,129 whose income is less than $177,882. If your income is more than $177,882, maximum for spouse amount will be limited to your basic personal amount.

Line 30400 – Amount for an eligible dependant

This has increased for most taxpayers to $16,129 whose income is less than $177,882. If your income is more than $177,882, maximum amount for dependant will be limited to your basic personal amount.

Alberta tax changes in 2025

Alberta supplemental tax credit

A new non-refundable tax credit has been introduced. The Alberta (AB) supplemental tax credit is equal to 2% of the total amount of certain non-refundable tax credits that exceeds $60,000.

Alberta’s organ and tissue donation program

There is a new initiative to promote organ and tissue donation. If you want to receive information by email about Alberta’s organ and tissue donation program, select yes for this question on your return.

Tax rates and income brackets

A new 8% tax bracket has been introduced on the first $60,000 of taxable income.

Political contribution tax credit

Political contributions to a prospective candidate association made on or after July 4, 2025, are eligible for the political contribution tax credit.

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

  • Basic personal amount increased to $22,323 ;
  • Maximum age amount increased to $6,221 ;
  • Maximum spouse amount is now $22,323 ;
  • Maximum amount for an eligible dependent is now $22,323 ;
  • Maximum caregiver amount for dependent increased to $12,922 ;
  • Maximum disability amount increased to $17,219 ;
  • Maximum adoption amount for eligible child increased to $19,354 ;

British Columbia tax changes in 2025

Venture capital tax credit

The annual limit for this tax credit has increased to $300,000 for investments made on or after March 4, 2025.

Training tax credit for individuals

The training tax credit for individuals has been extended until December 31, 2028. You can enter this in Credit tab once you sign in to our online tax filing program.

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

  • Basic personal amount increased to $12,932 ;
  • Maximum age amount increased to $5,799 ;
  • Maximum spouse amount is now $11,073 ;
  • Maximum amount for an eligible dependent is now $11,073 ;
  • Maximum BC caregiver amount for dependent increased to $5,659 ;
  • Maximum disability amount increased to $9,699 ;
  • Maximum adoption amount for eligible child increased to $19,580 ;

 

Manitoba tax changes in 2025

Volunteer firefighter and search and rescue amount

The volunteer firefighter and search and rescue amount is increased to $6,000 for a maximum annual credit of $648.

School tax credit for homeowners and the education property tax credit

The school tax credit for homeowners and the education property tax credit have been replaced by the homeowners affordability tax credit.

Renters affordability tax credit

The renters tax credit has been renamed the renters affordability tax credit. The maximum amount of the renters affordability tax credit and seniors top-up has increased.

Rental housing construction incentive tax credit

A new refundable rental housing construction incentive tax credit has been introduced. You can claim this refundable tax credit if you received a tax credit certificate from the minister appointed to administer the Manitoba Housing and Renewal Corporation Act for the construction of eligible rental units that started after January 1, 2024.

New Brunswick tax changes in 2025

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

  • Basic personal amount increased to $13,396 ;
  • Maximum age amount increased to $6,037 ;
  • Maximum spouse amount and amount for an eligible dependent increased to $10,499;
  • Maximum caregiver amount for dependent increased to $5,839 ;
  • Maximum amount for infirm dependent increased to $5,839;
  • Maximum disability amount increased to $10,010 ;

Newfoundland and Labrador tax changes in 2025

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings and bigger tax refund you. Here is the summary of changes:

  • Basic personal amount increased to $11,067 ;
  • Maximum age amount increased to $7,064 ;
  • Maximum spouse amount and amount for an eligible dependent increased to $9,043 ;
  • Maximum caregiver amount for dependent and amount for infirm dependent increased to $3,514 ;
  • Maximum disability amount increased to $7,467 ;
  • Maximum adoption amount for eligible child increased to $14,935 ;

 

Nova Scotia tax changes in 2025

Supplement amount removed

Starting with the 2025 tax year, the supplement amount has been removed when calculating the following credits:

  • Basic personal amount
  • Age amount 
  • Spouse or common-law partner amount
  • Amount for eligible dependent

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings and bigger tax refund you. Here is the summary of changes:

  • Basic personal amount increased to $11,744 ;
  • Maximum age amount increased to $5,734 ;
  • Maximum spouse amount and amount for an eligible dependent increased to $11,744 ;
  • Maximum caregiver amount for dependent and amount for infirm dependent increased to $2,446 ;
  • Maximum disability amount increased to $7,341 ;

Ontario tax changes in 2025

Minimum tax carryover rate

The Ontario minimum tax carryover rate has been reduced.

Fertility treatment tax credit

A new refundable fertility treatment tax credit of 25% of eligible expenses up to $20,000, for a maximum credit of $5,000, has been introduced.

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

  • Basic personal amount increased to $12,747 ;
  • Maximum age amount increased to $6,223 ;
  • Maximum spouse amount and amount for an eligible dependent increased to $10,823 ;
  • Maximum caregiver amount for dependent and amount for infirm dependent is $6,008 ;
  • Maximum disability amount increased to $10,298 ;
  • Maximum adoption amount for eligible child increased to $15,551 ;

Prince Edward Island tax changes in 2025

Change in income threshold

The income threshold for the spouse or common-law partner amount, amount for an eligible dependent, and age amount have increased.

    Change in provincial non-refundable tax credit

    Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

    • Basic personal amount increased to $13,500 ;
    • Maximum spouse amount and amount for an eligible dependent increased to $11,466;
    • Age amount has been increased to $5,595 ;

    Quebec tax changes in 2025

    Requirement to report foreign property

    For 2025 onward, you must report property held outside Canada if it is more than $100,000.

    Tax credit for career extension – Line 391

    For 2025 onward, the age of eligibility has been raised from 60 to 65. This means that you cannot claim the credit if you were 60 to 64 years old on December 31, 2025.

    Tax credit for home-support services for seniors – Line 458

    For 2025, the tax credit rate has been increased from 38% to 39%.

    Additional deductions for Québec resources – removed

    The additional deduction for certain Québec exploration expenses and the additional deduction for certain Québec surface mining exploration expenses have been eliminated in respect of flow-through shares issued after March 25, 2025.

    Capital gains deduction on resource property – removed

    The capital gains deduction on resource property has been eliminated in respect of property disposed of (sold, transferred, exchanged, donated, etc.) after March 25, 2025.

    Tax credit for the acquisition of Capital régional et coopératif Desjardins shares

    A new class of shares was created at the start of the capitalization period that began on March 1, 2025. Shares of the new class can be held for up to 14 years, and the tax credit rate is 25%. Also, a cumulative subscription ceiling of $45,000 per shareholder came into effect on March 26, 2025.

    Quebec prescription drug insurance plan

    On July 1, 2025, the contribution rates for the Québec prescription drug plan were increased, and the maximum premium was raised from $744 to $766. The maximum premium for 2025 is therefore $755.

    Change in provincial non-refundable tax credit

    Provincial non-refundable tax credits have been increased resulting in more tax savings and bigger tax refund you. Here is the summary of changes:

    • Deduction for workers on line 201 increased to $1,420 ;
    • Basic personal amount on line 350 increased to $18,571 ;
    • The amount for a person living alone increased to $2,128 on schedule B ;
    • Age amount increased to $3,906 on schedule B ;

    Saskatchewan tax changes in 2025

    Home renovation tax credit

    A new non-refundable home renovation tax credit of 10.5% of eligible home renovation expenses, to a maximum of $4,000 in expenses, has been introduced. An additional amount of $1,000 is available for individuals 65 years of age or older at the end of the year.

    Fertility treatment tax credit

    A new refundable fertility treatment tax credit of 50% of eligible expenses up to $20,000, for a maximum credit of $10,000, has been introduced.

    Active families benefit

    The maximum active families benefit amount for eligible children have increased to $300 ($400 with disability). Income threshold have been increased to $120,000 for the credit.

    Graduate retention program amount update

    The maximum lifetime graduate retention program amount for individuals graduating on or after October 1, 2024, has increased from $20,000 to $24,000.

    Change in provincial non-refundable tax credit

    Provincial non-refundable tax credits have been increased resulting in more tax savings and bigger tax refund you. Here is the summary of changes:

    • Basic personal amount increased to $19,491 ;
    • Maximum age amount increased to $5,785 ;
    • Maximum spouse amount and amount for an eligible dependent increased to $19,491 ;
    • Maximum caregiver amount for dependent and amount for infirm dependent increased to $13,986 ;
    • Maximum disability amount increased to $13,986 ;