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The federal government is proposing a cut to the lowest personal income tax rate from 15% to 14% starting July 1, 2025.

✅ Nearly 22 million Canadians will benefit
✅ Two-income families could save up to $840 per year
✅ $27 billion in total tax savings projected over five years

This move aims to put more money in the pockets of everyday Canadians, ease cost-of-living pressures, and fuel long-term economic resilience.

If legislated, expect changes in paycheck withholdings starting mid-2025, and full savings by the 2026 tax year.

Read the full release here:

Government of Canada delivering middle class tax cut - Canada.ca Last month, Canadians called for a serious plan for change to address the rising cost of living that has eroded Canadians’ quality of life. Change that puts more money in the pockets of Canadians. Change that builds a more affordable Canada.

2025 Important Tax Dates for Personal Taxes

Here are the key tax deadlines and dates for the 2025 tax season in Canada:

RRSP Contribution Deadline
March 3, 2025: Deadline to make contributions to your RRSP for the 2024 tax year.

Individual Tax Filing Deadline
April 30, 2025: Deadline for most individuals to file their 2024 tax return and pay any owed amounts. Interest begins May 1, 2025, for unpaid balances.

Self-Employed Tax Deadline
June 16, 2025: Filing deadline for self-employed individuals and their spouses. Note that any tax amount owing is still due by April 30, 2025.

Quarterly Tax Installment Deadlines:
March 15, June 15, September 15, December 15, 2025.

Tax Update: Important CRA Filing Changes!
If you file T3, T4, T4A, or T5 returns, whether as a business or an individual, the CRA has announced penalty relief for late filings submitted by March 7, 2025 (normally due Feb 28, 2025).

Starting in the spring of 2025, the Canada Revenue Agency (CRA) will transition to online mail as the default method of delivering most business correspondence. This means you’ll begin to receive your business tax notices and other correspondence through My Business Account. To prepare for this change, access Notification Preferences in your Profile to ensure you have a valid email address on file to receive email notifications on important tax notices and other information.

https://news.ontario.ca/en/release/1005601/taxpayer-rebate-cheques-now-being-sent-to-ontario-families

Taxpayer Rebate Cheques Now Being Sent to Ontario Families | Ontario Newsroom Taxpayer Rebate Cheques Now Being Sent to Ontario Families | Ontario Newsroom

Uber/Lyft and other Ridesharing and deliveries platforms are required to report income earned by the drivers to CRA.

Government Announces the 2025 Automobile Deduction Limits and Expense Benefit Rates for Businesses.

Effective January 1, 2025, the rates are:
72 cents per kilometre for the first 5,000 kilometres driven for business purposes.
66 cents per kilometre for each additional kilometre beyond 5,000.

The federal government plans to extend the deadline for claiming charitable donation tax deductions to the end of February, easing the impact of the recent Canada Post strike. 📬

Finance Minister Dominic LeBlanc announced the move following calls from premiers, as many charities saw significant declines in mail-in donations during the critical holiday season. 🎁

The four-week postal strike disrupted traditional donation methods, with organizations like The Salvation Army reporting a 50% drop in holiday contributions.

Legislation to formalize the tax deadline extension will be introduced when Parliament resumes on January 27, though questions remain about the Liberal minority government’s stability. 📜

This extension aims to support charities and donors alike, ensuring vital funds reach communities in need despite the disruption. A critical step for recovery. ❤️