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Filing your 2025 taxes in 2026? Here are the key changes, cancelled credits, and CRA updates Canadians need to know.
The tax changes for the 2025 income tax year are relatively limited due to the delay in the federal budget. Budgets are normally released in February, March, or April of each year; however, due to the April 2025 federal election, Prime Minister Mark Carney’s first budget was not tabled until November 2025.
Here are some of the key personal tax measures to be aware of for this upcoming tax season.
The 15% federal tax credit for up to $500 of qualifying digital subscriptions for qualified Canadian journalism organizations is no more. The tax credit was available from 2020 through 2024 inclusive. It is not available to claim for 2025.
The expenses eligible for the disability supports deduction have been expanded. This deduction is available for taxpayers with physical or mental impairments who incurred expenses to go to school or work.
Eligible expenses can include devices or software, an ergonomic work chair, voice recognition software, and several other items.
Renovations that allow a qualifying individual aged 65 or older or someone who qualifies for the disability tax credit to be more mobile or functional within a home or reduce their risk of harm may be eligible for the home accessibility tax credit.
2025 marks the last tax year when expenses that qualify for the HATC can also be claimed for a medical expense tax credit.
Deadlines, tax tips and more
The federal underused housing tax of 1% on certain vacant homes is eliminated for 2025 and future years. It primarily applied to non-Canadians but caused confusion with the potential requirement to apply for exemptions for Canadian taxpayers, as well.
Bare trusts have also been a confusing and contentious issue amongst taxpayers and tax practitioners alike in recent years. Once again this year, there is no requirement to file for 2025. Reporting rules are expected to apply for 2026 and beyond.
Ontario introduced a refundable fertility treatment tax credit of 25% on up to $20,000 of expenses. This means up to $5,000 of potential tax savings for an eligible taxpayer. Saskatchewan provides a similar provincial tax credit, refunding up to 50% of eligible expenses up to a $20,000 of fertility costs.
The Canada Revenue Agency continues to push taxpayers towards digital-first service delivery. Their My Account service is being positioned as the primary service channel, with less emphasis on phone support.
My Account now offers an AI-assisted virtual support option to answer general tax and account questions. For taxpayers with simple questions, this may be better than waiting on hold.
The next federal budget is expected in the fall, as the government has moved away from spring budget releases. After a light federal budget in 2025, taxpayers can expect something more significant in late 2026 to impact the 2027 tax filing season.
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