Navigating the 2025 Tax Season: Key Dates and Changes
Tax season officially commences this Monday, marking the first opportunity for Canadians to file their 2025 tax returns electronically. With the Canada Revenue Agency (CRA) preparing to process millions of submissions, understanding the landscape is crucial for timely and accurate filing.
Critical Filing Deadlines and Procedures
The primary deadline for most individuals to submit their tax return remains April 30. This date also serves as the cutoff for paying any taxes owed for 2025 to avoid non-deductible arrears interest, which accrues daily at the current prescribed rate of seven percent. For those with self-employment income, or whose spouse or common-law partner earned such income in 2025, the filing deadline extends to June 15. However, it is vital to note that any taxes due must still be paid by April 30 to prevent interest charges.
Before filing, ensure you have all necessary tax slips, some of which may not be mailed until March. If you possess a CRA account, you can access copies of your tax slips once the agency processes them. For online filing, you will need your NETFILE access code, which can be easily retrieved from your CRA account under the "tax returns" section.
What's New for the 2025 Tax Return
Several adjustments have been implemented for the 2025 tax year. Notably, the lowest marginal individual income tax rate was reduced to 14 percent from 15 percent, effective July 1, 2025. Consequently, the full-year rate for 2025 is 14.5 percent, which also applies to most non-refundable tax credits. To mitigate the reduced value of these credits, the government introduced a new top-up tax credit, maintaining a 15 percent rate for certain non-refundable credits claimed on amounts exceeding the first income tax bracket threshold of $57,375 for 2025. This change primarily impacts taxpayers with substantial credits, such as those for medical expenses or tuition.
Filing Tips and CRA Statistics
During the last tax-filing season, the CRA received over 33 million tax returns, with 93 percent filed online. The agency issued more than 19 million refunds, averaging $2,000 each, and 79 percent of these were distributed via direct deposit. Currently, over 28 million individuals are enrolled for direct deposit, highlighting the efficiency of electronic processing.
If you file online, the CRA aims to issue your notice of assessment within two weeks of receiving your return. For paper filings, the service standard extends to 12 weeks. Additionally, remember the registered retirement savings plan (RRSP) contribution deadline on March 2, providing just over a week to make contributions deductible on your 2025 return.
By staying informed about these deadlines and updates, you can navigate tax season smoothly and avoid potential penalties, ensuring compliance with CRA requirements.
