2025 TAX Updates

2025 Tax Updates Personal Income Tax Changes (2025) Federal Tax Brackets: As of recent years, the tax brackets have been adjusted slightly for inflation. These brackets determine the rates at which your income is taxed. Federal Tax Rates: 15% on income up to $53,359 20.5% on income between $53,359 and $106,717 26% on income between […]

GST & HST Overview

GST & HST Overview Rates HST Rates (Current) The HST is a combined federal and provincial sales tax, applicable in certain provinces where the federal government shares its portion with the provincial government. The rates in the provinces that use HST are: Federal portion: 5% Provincial portion: Varies by province The combined HST rate in […]

Vehicles For Business

Vehicles For Business Vehicle Deduction Limits (2025) For businesses and self-employed individuals using their vehicles for work, the CRA allows certain deductions based on vehicle expenses. These can include fuel, maintenance, insurance, leasing costs, and depreciation (capital cost allowance or CCA) for owned vehicles. The limits on what you can claim depend on the type […]

Savings and Pension Plans

Savings and Pension Plans RRSP Contribution Limits (2025) The RRSP contribution limit is based on a percentage of your previous year’s earned income, up to a maximum dollar amount. For 2025, the RRSP limit has been set as follows: 18% of earned income, up to a maximum of $31,000 (for 2025). Carry-forward: If you don’t […]

Personal Income vs Incorporating

Personal Income vs Incorporating When deciding between paying personal taxes versus incorporating your business in Canada, it’s important to weigh the tax implications of both options. Incorporating a business can offer several benefits, but it also comes with some complexity. Here’s a breakdown of the personal tax implications versus those of incorporating:   Personal Tax […]

Capital gains Taxation

Capital gains Taxation In Canada, capital gains tax is applied to the profit from the sale of investments or assets like stocks, real estate (excluding your primary residence), or other properties. The key point about capital gains tax is that only 50% of the gain is taxable at your regular income tax rate. Regarding recent […]

CPP ENHANCEMENT

Effective January 1st, 2024, the Canada Revenue Agency (CRA) has implemented significant changes to the Canada Pension Plan (CPP) by the with the aim to provide Canadians with increased retirement benefits. These changes, known as the Enhanced CPP or what you may have seen referred to as “CPP2 deductions”, affect higher income workers earning greater […]

Underused Housing Tax

Effective January 1, 2022, The Canadian Government has implemented an annual 1% tax on the value of vacant or underused residential real estate owned by non-resident, non-Canadian entities. The Underused Housing Tax (UHT) rules are applicable to residential properties, including Farm dwellings, owned on or after December 31, 2022. Under these guidelines, residential property owners, […]