Canadian Personal Tax Summary for 2025

Key Deadlines, Instalment Thresholds, and Tax Changes from a CRA Perspective

Staying up to date with CRA deadlines and understanding the nuances of personal tax matters are essential for avoiding penalties and optimizing your financial situation. Below, you'll find an overview of important dates, how instalments work (including the current threshold amounts), and the key tax changes for the 2025 tax year as of today.

Key CRA Dates for 2025

Tax Return Filing Deadline

For most Canadian residents, the personal tax return for the 2025 tax year must be filed by April 30, 2026. Self-employed individuals (or those with a self-employed spouse or common-law partner) have until June 15, 2026 to file their return, though any taxes owing must still be paid by April 30.

Payment Deadline

All tax balances are due by April 30, 2026. Meeting this deadline is crucial to avoid interest charges on any unpaid taxes.

Understanding Tax Instalments

If your net tax owing is expected to exceed the CRA threshold—more than $3,000 in either 2023 or 2024 —you may be required to make quarterly instalment payments for 2025.

How Instalments Work

When your tax liability (net tax owing) exceeds these thresholds, the CRA requires you to pay your tax in instalments throughout the year. Instalment reminders are sent by the CRA, and the payment dates are typically:

• March 15

• June 15

• September 15

• December 15

These quarterly payments help ease the burden of one large payment at year-end. If your income varies significantly, you may have the option to choose among several calculation methods (for example, based on your prior-year tax or your current estimate) to determine an appropriate instalment amount.

2025 Personal Tax Changes

The Canadian government has introduced some notable changes for the 2025 tax year that can benefit many taxpayers:

• Lower Marginal Tax Rate: One of the key adjustments is the reduction of the lowest federal income tax rate from 15% to 14% effective July 1, 2025. This applies to taxable income up to approximately $57,375, with taxpayers effectively receiving a blended rate throughout the full tax year. This change is designed to boost take-home pay for low- and middle-income earners.

• Payroll Deductions Update: Employers are set to implement revised source deduction tables reflecting the new rate. This means many employees should expect slightly lower payroll tax deductions starting mid-year.

These changes aim to provide financial relief for approximately 22 million Canadians, making the tax system more equitable and boosting disposable income over time.

For further details or updates on these changes, you can always reach the CRA Personal Tax Enquiries line at 1-800-959-7383.

How I Can Help

Navigating personal tax obligations—from filing deadlines and payment schedules to the intricacies of instalments and new tax changes—can be overwhelming. As a sole practitioner CPA dedicated to serving individuals and small-to-medium sized businesses, I provide personalized expertise to ensure you’re set up for success.

• Personalized Guidance: I will help you understand your specific filing requirements and the best approach to managing instalment payments, especially if your tax situation is on the threshold.

• Proactive Planning: With ongoing changes like the new lower tax rate, I offer timely updates and strategic advice that keep you compliant with ever changing CRA regulations.

• Direct, Accessible Service: Avoid the hassle of layers of communication. You’ll have direct access to me for prompt, clear, and reliable information that is specifically tailored to your situation.

• Convenience Meets Expertise: Whether you prefer remote consultations or a face-to-face meeting in Kamloops, I’m here to provide the support you need during tax season and throughout the year.

Staying compliant with CRA requirements isn’t just about meeting deadlines—it’s about smart planning and effective execution. Reach out today if you have questions about your 2025 tax obligations or if you’d like to schedule a consultation. Together, we’ll ensure your tax strategy works for you, so you can focus on what matters most: growing your business.

For any queries or to schedule an appointment, please contact me today or call the CRA Personal Tax Enquiries at 1-800-959-7383 for further information.