Tax Season 2025: What British Columbian Residents Need to Know
Tax season is here again, and 2026 brings several important updates that individuals and families across British Columbia should be aware of. Whether you file your own return or work with a CPA, understanding these changes early can help you avoid surprises, maximize your refund, and stay compliant with the CRA.
This guide breaks down the key updates for the 2025 tax year (filed in spring 2026), including new credits, inflation adjustments, and provincial considerations that matter specifically to British Columbians.
1. Key Federal Tax Changes for 2025
Updated Federal Tax Brackets
The CRA has adjusted tax brackets for inflation again this year. While the increases are modest, they may reduce your overall tax burden if your income stayed relatively stable.
Basic Personal Amount (BPA) Increase
The BPA continues its gradual rise, giving most Canadians a slightly larger non‑refundable credit. This reduces the amount of federal tax you owe.
Canada Workers Benefit (CWB) Enhancements
Low‑ and modest‑income workers may see higher refundable credits due to expanded eligibility and inflation indexing.
2. Provincial Tax Updates for British Columbia
BC Basic Personal Amount
BC has also indexed its BPA for inflation, increasing the amount of income you can earn before paying provincial tax.
BC Family Benefit Adjustments
Families with children may see higher monthly payments due to inflation adjustments. Eligibility remains income‑tested.
BC Climate Action Tax Credit
The credit has increased again in 2026, providing additional relief to low‑ and middle‑income households. Payments continue quarterly.
3. Credits and Deductions British Columbians Shouldn’t Miss
Home Office Expenses
If you work from home, you may still be eligible to deduct home office expenses, but note that the temporary flat‑rate method introduced during the pandemic is no longer available. You must now use the detailed method.
Medical Expenses
BC residents often overlook eligible medical expenses such as travel for medical care, certain dental procedures, and private insurance premiums.
Tuition and Education Credits
Students can continue to claim tuition amounts, and unused credits can be carried forward.
Disability Tax Credit (DTC)
Eligibility criteria have been broadened in recent years. If you or a family member has a prolonged impairment, it’s worth reviewing.
4. Real Estate & Property Considerations
Home Buyers’ Amount
First‑time home buyers may qualify for an increased federal credit, and BC’s Property Transfer Tax exemptions remain available for qualifying purchases.
Underused Housing Tax (UHT)
The federal Underused Housing Tax (UHT) has been eliminated for the 2025 and subsequent calendar years. You do not need to file a UHT return or pay the UHT for 2025 or later years. However, all filing and payment obligations for 2022, 2023, and 2024 remain in effect, and penalties for non-compliance with those years still apply.
5. Important Deadlines for 2025 Personal Taxes
April 30, 2026 — Personal tax filing and payment deadline
June 15, 2026 — Filing deadline for self‑employed individuals (payment still due April 30)
March 1, 2026 — RRSP contribution deadline for the 2025 tax year
Mark these dates early to avoid penalties and interest.
6. Should You Work With a CPA This Year?
With new credits, inflation adjustments, and ongoing CRA scrutiny in areas like home office claims and real estate reporting, many British Columbians benefit from professional tax preparation.
A CPA can help you:
Maximize deductions and credits
Avoid costly filing errors
Plan ahead for 2026 and beyond
Navigate complex situations like rental properties, self‑employment, or investments
Final Thoughts
Tax season doesn’t have to be stressful. With the right information, and the right advisor, you can file confidently, minimize your tax burden, and stay compliant with both federal and provincial rules. Feel free to reach out if you would like support.