2025 was chaotic, right? Fortunately there weren’t that many tax changes to keep track of.

New for 2025

Lower tax rate - The federal tax rate for the lowest tax bracket was decreased from 15 to 14% effective July 1, 2025. Since it was enacted part-way through the year, the rate will be 14.5% for 2025 and 14% for 2026.
- Pro tip: Even though it’s for the lowest tax bracket, everyone benefits from this change regardless of how much you earn.
CPP increases - CPP increased dramatically in 2024 with the launch of a second level of CPP, known as CPP2. That increase continues in 2025. A self-employed person making $75,000 would pay $7,508 in CPP in 2023, $8,111 in 2024, and $8,364 in 2025.
Ontario Fertility Treatment Tax Credit - This is a game changer for future parents. On top of the usual medical expense credit, you’re now eligible for an additional 25% tax credit on eligible fertility expenses up to $20,000. This new credit is as of January 1, 2025.
Canada Disability Benefit - The CDB launched in July 2025 for eligible persons receiving the Disability Tax Credit.
Carbon rebates - The last Canada Carbon Rebate was paid to individuals in Spring 2025, and to eligible small businesses in December 2025.

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