Filing taxes can feel overwhelming, especially with all the recent changes. But don’t worry. Understanding what’s new and planning makes submitting your taxes much easier. Staying up-to-date helps you get the most money back and avoid costly mistakes. This guide will walk you through everything you need to know about filing your taxes in Canada in 2025. From new rules to helpful tips, you'll be ready to tackle tax season confidently.
From deadlines to deductions, use these tips to breeze through tax season, avoid mistakes, and save money. Filing taxes in Canada for 2025 doesn't have to be painful. Whether you're employed, self-employed, or somewhere in between, this guide cuts through the noise and gives you exactly what you need to know.
How Does Tax Filing Work in Canada?
Most people living and working in Canada are required to pay taxes. Every year, you will file a tax return where you report your income from the previous year to the Canada Revenue Agency (CRA). You must list all forms of income, including any self-employment earnings, tips, or business income, and then check your eligibility for tax deductions or credits.
Even if you haven't earned any money in a given year, filing a tax return still allows you to access benefits like the goods and services tax/harmonized sales tax (GST/HST) credit, among others. The CRA may assess your return and determine that you’re squared up and don’t need to pay any tax, that you are owed money back with a refund cheque, or that you still have outstanding taxes to pay.
Key Deadlines You Can't-Miss
- April 30, 2025 — Final day to file your personal income tax return.
- June 15, 2025 — Final day for self-employed individuals (but any balance owed is still due April 30).
- March 1, 2025 — Deadline to contribute to your RRSP for the 2024 tax year.
What’s New in 2025
- Basic Personal Amount (BPA): Adjusted for inflation — expect a slight increase.
- First Home Savings Account (FHSA): Now fully integrated. Contributions can lower your taxable income.
- Climate Action Incentive: Expanded to more provinces, claim it if you’re eligible.
- Work-from-home claims: Flat rate method discontinued — detailed expense tracking now required.
Who Needs to File Taxes in Canada?
Filing taxes is mandatory for Canadian residents and newcomers, including immigrants, international students and temporary foreign workers.
You must file Canadian taxes if:
- You received Canadian-sourced income
- You owe the government money
- You want to claim a refund or benefit, such as Canada Child Benefit (CCB)
What should I include in my tax return?
In addition to your financial reporting, you are required to provide basic information, such as your name and address and your Social Insurance Number (SIN). All newcomers to Canada need a SIN. If you have requested an SIN and are still waiting for your documentation, still file your taxes to avoid penalty charges or benefit delays.
Filing a paper tax return
If you are filing a paper return, you should include one copy of all relevant documents, including:
- T4 slips: If you are employed in Canada, you will receive a T4 slip from your employer, which outlines your total remuneration and source deductions for the year (such as Employment Insurance, Canada Pension Plan, and income tax withheld).
- Business receipts: If you are self-employed, you will need to keep business receipts and invoices to accurately report your income and claim deductions. You may need them in case CRA has any follow-up questions.
- Dependants' details: This includes basic information about your spouse, children, and/or elderly parents. You may be eligible for certain tax credits.
- Receipts for deductions/credits: Examples include medical expenses, childcare costs, charitable donations, and tuition payments (T2202 slip).
- RRSP contributions: Your Registered Retirement Savings Plan (RRSP) deduction limit and receipts for contributions made during the year.
- Tax slips for investments: Capital gains or losses, dividends or interest earnings.
- Proof of residency: For claiming certain provincial or territorial credits.
- Direct deposit info: To get your refund even faster.
Missing even one of these can cost you money or delay your refund.
Additional Earnings and Tax Credits
Don’t forget that in addition to reporting all the income you earn in Canada, there are other financial earnings and tax credits that need to make their way onto your forms, too. For example:
- Foreign income: If you have income from a different country, it must be reported in Canadian dollars on your Canadian tax return. If you have already paid taxes on the income you received outside of Canada, you might qualify for the federal foreign tax credit.
- Moving expenses: Generally, you cannot deduct expenses incurred to move to Canada. You may be able to claim moving expenses if you moved to work to run a business at a new location or to study courses as a full-time student enrolled in a post-secondary program at a university, a college, or another educational institution. If this is the case, your new home must be at least 40 km closer to your new work location or school.
- Support payments: Even if your former spouse or common-law partner does not live in Canada, you may be able to deduct support payments made.
Top Tax Breaks to Remember
- Canada Workers Benefit (CWB): Low-income workers may get a boost.
- Disability Tax Credit: Updated rules make it easier to qualify.
- Home Office Expenses: Track internet, phone, rent portion, and utilities if you work remotely.
- Northern Residents Deductions: If you live up North, don’t miss it.
- Digital News Subscription Credit: Yes, even subscribing to a newspaper can save you money.
Common Pitfalls to Avoid
- Missing deadlines: Late filing penalties are harsh — 5% of your balance owing, plus 1% for each month late.
- Forgetting income: CERB, CEWS, side hustles — the CRA knows. Report everything.
- Not updating your address or banking info: It’ll delay your refund.
- Filing too early: Wait until you have all your slips to avoid reassessments.
Survival Checklist
- Gather all slips and receipts
- Double-check your credits and deductions
- Choose the right filing method
- File before April 30
- Set up direct deposit for faster refunds
Post-Filing Tips and Strategies
Reviewing Your Tax Return
Before submitting, double-check all figures. Confirm your income, deductions, and credits match your documents. If you find mistakes, file an amended return quickly with CRA procedures.
Planning for Next Year
Start saving early for taxes. Adjust your withholding if you got a big refund or owe money last year. Consider monthly savings to cover upcoming bills comfortably.
Staying Informed for Future Filings
Subscribe to CRA updates or tax blogs. Rules change, and staying current helps avoid surprises. Review
Wrap Up
Filing taxes in Canada in 2025 doesn’t have to be stressful. Stay organized, be aware of new rules, and take advantage of deductions and credits. Early preparation helps prevent last-minute panic and maximizes your refund. Use reliable tools and seek professional help if needed.
Book a Consultation Today
Let Filing Taxes –Toronto Tax Professional help you prepare better for next the 2026 tax season with ease. Connect with Filing Taxes at 416-479-8532. Schedule an NTR engagement appointment with us and take the first step toward proper management of your finances.
Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.