There are a few changes in federal policies that could affect Canadians’ finances in the new year.
Brian Quinlan, a chartered professional accountant with Allay LLP, says many of the changes are routine. These include inflation-based adjustments to what tax bracket you fall into or what your TFSA contribution room looks like.
Other changes — such as the capital gains tax changes that will be in effect for their first full year in 2025 — may need more planning.
Here’s a list of changes to be aware of:
Tax brackets
For 2025, income tax brackets are increasing by 2.7 per cent in the new year to prevent higher prices from pushing Canadians into higher tax brackets. That comes after a 4.7 per cent increase in 2024.
For 2025, federal tax is 15 per cent for earnings up to $57,375; 20.5 per cent between $57,375.01 and $114,750; …