The Canada Revenue Agency (CRA) has released its official list of updates for the 2025 tax year, outlining new income tax brackets, an increased basic personal amount, a new compensatory tax credit, and improvements to online account access.

Tax season will officially open on February 23, 2026, with key deadlines running through April and June. Some changes are already in effect, while others could influence how much Canadians owe — or receive — when filing this spring.

Here’s a clear breakdown of what’s new and how it could impact your 2025 return.

Key 2026 Filing Dates to Mark Now

If you’re preparing early, these are the most important deadlines:

• February 23, 2026 – Tax filing season opens
• March 2, 2026 – Deadline to contribute to your RRSP for the 2025 tax year
• March 2, 2026 – Employers must issue T4 slips
• April 30, 2026 – Filing and payment deadline for most Canadians
• June 15, 2026 – Filing deadline for self-employed individuals

Even if you’re self-employed, any balance owing must still be paid by April 30, 2026 to avoid interest.

New 2025 Federal Tax Brackets (Indexed at 2.7%)

For 2025, income tax brackets have been indexed by 2.7% to reflect inflation. This means higher income thresholds before moving into the next tax rate.

2025 Federal Tax Rates

• 14.5% on income up to $57,375
• 20.5% on income between $57,375 and $114,750
• 26% on income between $114,750 and $177,882
• 29% on income between $177,882 and $253,414
• 33% on income above $253,414

Indexation helps prevent “bracket creep,” where inflation pushes taxpayers into higher brackets without real income growth.

Increased Basic Personal Amount (BPA)

The Basic Personal Amount (BPA) — the portion of income you can earn tax-free — has increased.

2025 BPA Levels

• $16,129 if your income is $177,882 or less
• $14,538 if your income is $253,414 or more
• Gradually reduced for incomes in between

This adjustment may slightly reduce federal tax owed for many Canadians.

New Compensatory Tax Credit

A new compensatory tax credit was introduced during the November economic update to address unintended effects on non-refundable tax credits.

What It Does

For taxpayers claiming non-refundable credits on amounts above $57,375, the mechanism preserves the value of those credits at the equivalent of a 15% rate.

This prevents higher-income individuals from losing tax advantage due to rate adjustments in upper brackets.

This change primarily affects individuals claiming larger non-refundable credits.

Enhanced CRA My Account Access

The CRA has upgraded its My Account online portal.

If your account becomes locked or you forget login details, you can now reset access directly online without calling support.

How to Reset

1. Visit the CRA login page
2. Click “Help”
3. Select “Your account is locked”
4. Follow verification steps

This improvement aims to reduce wait times and improve digital service efficiency.

Expanded Disability-Related Tax Deductions

For 2025, the list of eligible disability support expenses has expanded.

New qualifying items include:

• Alternative input devices
• Personal assistance services
• Bed positioning devices
• Digital pens
• Ergonomic work chairs
• Memory or organizational aids
• Mobile computer carts
• Navigation devices
• Assistance animals

These updates may allow more Canadians with disabilities to claim deductions or credits.

Why These Changes Matter

The 2.7% indexation reflects continued inflation pressure. Adjustments to tax brackets and credits are intended to:

• Protect purchasing power
• Prevent bracket creep
• Improve fairness in credit calculations
• Modernize CRA digital services

Even small bracket shifts can impact refund amounts or balances owed.

What You Should Do Now

To prepare for filing:

• Gather T4 and income slips by early March
• Confirm RRSP contributions before March 2
• Review eligibility for new disability deductions
• Check CRA My Account login access early
• Estimate potential tax owing based on new brackets

Early preparation helps avoid last-minute errors or penalties.

Frequently Asked Questions (FAQ)

When does 2025 tax season start?

February 23, 2026.

What is the RRSP deadline for 2025?

March 2, 2026.

Has the Basic Personal Amount increased?

Yes. It rises to $16,129 for eligible income levels.

What is the highest 2025 federal tax rate?

33% on income above $253,414.

What is the new compensatory tax credit?

It preserves the value of certain non-refundable credits at a 15% rate above the first bracket.

Can I reset my CRA account online?

Yes. Locked accounts can now be reset directly through the CRA website.

Have disability deductions changed?

Yes. Several new assistive devices and services are now eligible.