The Canadian tax checklist: Turn tax season into an opportunity
Tax season doesn’t have to be stressful. Instead of waiting until the last minute, you could consider it a chance to improve your financial well-being. With a little planning and organization, you may be able to save additional funds and feel more in control of your money.
taxes
BY MONEYTALK STAFF
January 2025
According to Georgia Swan, Tax and Estate Planner at TD Wealth, tax time is often overlooked as a chance to improve your finances. By claiming all the credits and deductions you’re entitled to, you can save money and align your taxes with your overall financial strategy. Staying organized also helps you avoid missing out on valuable opportunities.
What’s new for the 2025 tax year?
Launched in June 2025, the Canada Disability Benefit (CDB) supports working-age people with disabilities. To qualify, you must be eligible for the Disability Tax Credit and have filed last year’s tax return. The benefit can be up to $200 a month, depending on your family income. Learn more and apply on the Canada Disability Benefit website.
Disclaimer
For 2025, the year's maximum annual pensionable earnings (YMPE) is $71,300, with a basic
exemption amount of $3,500. For 2026, the YMPE has increased to $74,600 and the basic exemption amount remains the same. Beginning in 2024, an additional maximum pensionable earnings was introduced as the Canada Pension Plan (CPP2). For CPP2 (the CPP enhancement), the year's additional maximum pensionable earnings (YAMPE) for 2025 is $81,200. For 2026, it is $85,000. For more on CPP2, visit What is the CPP enhancement?
Year's Maximum Pensionable Earnings
Key Tax Deadlines and Limits
The information contained herein has been provided by TD Wealth and is for information purposes only. The information has been drawn from sources believed to be reliable. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual's objectives and risk tolerance.
TD Wealth represents the products and services offered by TD Waterhouse Canada Inc., TD Waterhouse Private Investment Counsel Inc., TD Wealth Private Banking (offered by The Toronto-Dominion Bank) and TD Wealth Private Trust (offered by The Canada Trust Company).
TD Wealth Private Wealth Management represents the products and services available through TD Wealth Private Investment Advice (a division of TD Waterhouse Canada Inc.), TD Wealth Private Investment Counsel (offered by TD Waterhouse Private Investment Counsel Inc.), TD Wealth Private Banking (offered by The Toronto-Dominion Bank) and TD Wealth Private Trust (offered by The Canada Trust Company).
®The TD logo and other TD trademarks are the property of The Toronto-Dominion Bank or its subsidiaries.
Understanding the basics can help you make better decisions. Generally, tax deductions reduce your taxable income, while tax credits reduce the amount of tax you pay. Knowing the difference can help you plan more effectively.
Tax Return (Individual): April 30, 2026
Tax Return (Self-Employed): June 15, 2026 (amount owing still due April 30)
RRSP Contributions: March 2, 2026 (Contributions can be made for the 2025 tax year until this date)
Starting in July 2025, the lowest federal marginal tax rate dropped from 15% to 14%. This means slightly higher take-home pay for many Canadians. However, because this rate also applies to some tax credits, some people may pay more tax. A temporary non-refundable top-up tax credit could help offset this for the next five years. For more information, view the top-up tax credit.
14.5% on income up to $57,375*
20.5% on $57,375 to $114,750
26% on $114,750 to $177,882
29% on $177,882 to $253,414
33% on income over $253,414
If you bought your first home in 2025, you may claim up to $10,000 through the First-Time Home Buyers’ Tax Credit, for a return of up to $1,450. Other options to explore include the First Home Savings Account (FHSA) and the Home Buyers Plan (HBP).
Credits, deductions and benefits to explore
If you own foreign property worth more than CDN$100,000 you must file a T1135 form. The
value is based on the exchange rate at the time of purchase. If you rent out foreign property, you may need to file tax returns in both countries. The U.S. tax deadline is April 15. The deadlines for other countries may vary.
Foreign assets and U.S. tax filing
Why planning matters
Canada Disability Benefit
A lower marginal tax rate
You can no longer claim a credit for subscriptions to Qualified Canadian Journalism Organizations. The Canada Carbon rebate has also been discontinued.
What’s gone
You can contribute up to 18% of your 2025 earned income to an RRSP, to a maximum of $32,490, minus any pension adjustment, plus unused room from previous years. Contributions made up to March 2, 2026 can either count toward your 2025 limit or be carried forward to 2026.
RRSP contribution limits
Tax brackets matter for planning. Deductions can help you move into a lower bracket and credits can reduce your tax bill. For 2025, the federal rates are:
Understanding tax brackets
*The 14% rate took effect July 1, 2025, so the effective rate for the year is 14.5%.
Homebuyer programs
Tax season is more than just paperwork. By claiming all the credits and deductions you qualify for, you could put more money in your pocket. Take the time to review your options and make the most of this annual opportunity.
Make tax time work for you
Medical Expenses: Many credits and deductions are available for medical costs, including some incurred outside Canada. Some require a prescription or a Disability Tax Credit Certificate.
Canada Training Credit: Helps cover eligible training and tuition fees for Canadian residents aged 26–66
Canada Caregiver Credit: For those supporting a spouse, partner or family member with an impairment
Moving Expenses Deduction: For those who moved for work or business
Child Benefit: For those primarily responsible for raising a child
Disability Tax Credit: For Canadians with mental or physical impairments and their supporting families
Your T4
T4 slips should be available by the end of February. If you haven’t received your documents, check with your employer, financial institution and the CRA (for taxable government benefits).
Tax Return (Individual): April 30, 2026
Tax Return (Self-Employed): June 15, 2026 (amount owing still due April 30)
RRSP Contributions: March 2, 2026 (Contributions can be made for the 2025 tax year until this date)
Key Tax Deadlines and Limits
The information contained herein has been provided by TD Wealth and is for information purposes only. The information has been drawn from sources believed to be reliable. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual's objectives and risk tolerance.
TD Wealth represents the products and services offered by TD Waterhouse Canada Inc., TD Waterhouse Private Investment Counsel Inc., TD Wealth Private Banking (offered by The Toronto-Dominion Bank) and TD Wealth Private Trust (offered by The Canada Trust Company).
TD Wealth Private Wealth Management represents the products and services available through TD Wealth Private Investment Advice (a division of TD Waterhouse Canada Inc.), TD Wealth Private Investment Counsel (offered by TD Waterhouse Private Investment Counsel Inc.), TD Wealth Private Banking (offered by The Toronto-Dominion Bank) and TD Wealth Private Trust (offered by The Canada Trust Company).
®The TD logo and other TD trademarks are the property of The Toronto-Dominion Bank or its subsidiaries.
Disclaimer