Canada's 2025 Tax & Financial Changes: What You Need to Know

What’s New for Your Finances in Canada for 2025?

As we step into 2025, it’s important to know about several key changes that could impact your finances. From taxes to government benefits, here’s a simple breakdown of what’s happening and how it might affect you.

Tax Updates

Capital Gains Tax Changes:

• The inclusion rate for taxable capital gains is expected to increase from 50% to 67% for annual gains above $250,000.
• This change applies to individuals, corporations, and trusts, but principal residences remain exempt.
• A $250,000 threshold ensures smaller gains keep the current 50% rate.

Tax Holiday on Essentials:

• Until February 15, 2025, GST/HST is waived on items like prepared foods, takeout, kids’ clothing, and more.
• This temporary measure could save Canadians an estimated $1.5 billion.

Government Benefits

Inflation-Adjusted Payments:

• Benefits like the Canada Child Benefit (CCB) and Old Age Security (OAS) are reviewed periodically to reflect cost-of-living changes.
• OAS payments will stay the same for now since inflation remained steady.

GST/HST Credits:

• Low- and modest-income Canadians can get quarterly GST/HST credits.
• For July 2024–June 2025, individuals could receive up to $519.

Retirement Savings

RRSP Contribution Limits:

• The contribution limit for 2025 increases to $32,490 (up from $31,560 in 2024).

CPP Contributions:

• Both maximum pensionable earnings and contributions will increase.

These updates highlight the need to stay informed and plan ahead to make the most of your finances in 2025.

We’re Here to Help

If you have any questions, need clarity, or want advice tailored to your financial goals, we’d love to hear from you!

?? Email us at [email protected] ?? Message us on LinkedIn

Let’s make 2025 a financially successful year for you!