2025 was chaotic, right? Fortunately there weren’t that many tax changes to keep track of.
June 20262 min readBy Ann
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.
Ann
Co-founder of HBA and retired Acupuncturist. Ann communicates tax and finances in a language we can all understand.
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What’s new for your 2025 taxes?
2025 was chaotic, right? Fortunately there weren’t that many tax changes to keep track of.
June 20262 min readBy Ann
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.
Ann
Co-founder of HBA and retired Acupuncturist. Ann communicates tax and finances in a language we can all understand.
