Basic Personal Amount | Canada Carbon Rebate | Canada Caregiver Credit | Canada Child Benefit | Canada Disability Benefit | Canada Groceries and Essentials Benefit | Canada Pension Plan Enhancement | Canada Training Credit | Canada Workers Benefit | Carrying Charges | Charitable Donations | Child Care Expenses | Digital News Subscriptions | Disability Supports Deduction | Disability Tax Credit | Education and Textbook Credits | Employment Expenses | First Home Savings Account | GST/HST Credit | Home Accessibility Tax Credit | Home Buyer’s Amount | Home Buyer’s Plan | Home Office Expenses | Legal Fees | Lifelong Learning Plan | Medical Expenses | Moving Expenses | Multigenerational Home Renovation Tax Credit | Ontario Childcare Access and Relief from Expenses | Ontario Child Benefit | Ontario Fertility Treatment Tax Credit | Ontario Property Tax Credit | Ontario Sales Tax Credit | Ontario Senior Homeowners’ Property Tax Grant | Ontario Seniors’ Public Transit Tax Credit | Ontario Trillium Benefit | Principal Residence Disposition | Professional Fees and Union Dues | Registered Education Savings Plan | Registered Retirement Income Fund | Registered Retirement Savings Plan | Search and Rescue Volunteers’ Tax Credit | Teacher Supplies | Tax-Free Savings Account | Top-Up Tax Credit | Tradesperson’s Tools Expenses | Tuition Expenses | Union Dues | Volunteer Firefighters Tax Credit

On Dec. 9, 2019, the new government introduced legislation to implement changes to the Basic Personal Amount (BPA):

• The basic personal amount is now calculated based on income; a supplement will be added to the base amount depending on income

• The maximum basic personal amount for 2025 reduces from $16,129 beginning at income over $177,882 (the lower threshold of the 4th federal bracket) and reduces fully to $14,538 at income over $253,414 (beginning of 5th bracket). The supplement is therefore $1,591.

• The maximum basic personal amount for 2026 reduces from $16,452 beginning at income over $181,440 (the lower threshold of the 4th federal bracket) and reduces fully to $14,829 at income over $258,482 (beginning of 5th bracket). The supplement is therefore $1,623.

For residents of Ontario: The final payment of the Canada Carbon Rebate was issued in April, 2025 (or shortly thereafter, depending on when the taxpayer filed their income tax return). No further payments will be issued from this program. Note that taxpayers who have not yet filed for tax years for which this credit was offered (2022-2024) must file these year(s) by October 30, 2026 to receive these payments retroactively. After this date, taxpayers will no longer be eligible to make these claims.

Beginning with tax year 2017, the Infirm Dependent Credit, Caregiver Credit, and Family Caregiver Credits have been consolidated into the new Canada Caregiver Credit (CCC). The rules for this new credit are complex, however, a couple of changes of interest are:

• Taxpayers can now claim this new credit for infirm dependents 18+ years of age that do not live with them.

• Taxpayers will NOT be able to claim non-infirm senior parents or grandparents.

• For 2024 this credit starts to reduce when the dependent has $20,197 of income and is fully eliminated at $28,798 of income

More information about the Canada Caregiver Credit can be found here.

Payments under this new benefit began in July 2016. This program has replaced the Canada Child Tax Benefit (CTTB) as well as the Universal Child Care Benefit (UCCB). More information about the Canada Child Benefit can be found here.

The Canada Disability Benefit (CDB) is a tax-free federal benefit designed to provide direct financial support to working-age, low-income Canadians (aged 18-64) with disabilities (i.e. taxpayers already approved for the Disability Tax Credit). Payments of up to $200/month began in July 2025 for applications received and approved by June 30, 2025, and applicants may receive back payments for up to 24 months from the date of application approval. Taxpayers must apply for this benefit with Service Canada. More information about qualification criteria, how to apply, and payment amounts can be found here.

Formerly known as the GST/HST Credit, this new benefit will increase by 25% for five years starting in July, 2026. In addition, a one-time top-up payment equal to 50% of the 2025-26 value will be issued to eligible and entitled recipients of the January 2026 payment of the GST/HST credit no later than June 2026.

• Starting with 2019 tax year, the CPP benefit is being gradually “enhanced”. This means you will receive higher benefits in exchange for making higher contributions.

• These increased contributions will allow the enhanced CPP to replace 33.33% of your “average lifetime earnings” rather than the current 25%

• Starting with 2024, there are now three components to CPP contributions (the 2nd Additional Enhanced Rate starting in 2024):

  o   Base: Remains at 4.95% employee + 4.95% employer

  o   1st Additional Enhanced Rate: Additional 1% each, bringing total to 5.95% each

  o   2nd Additional Enhanced Rate: additional 4% employer + 4% employee only for individuals with annual earnings above the 1st earnings ceiling (between $68,500 and $73,200 in 2024; $71,300 and $81,200 in 2025)

This is a (notional) refundable tax credit that is available for eligible tuition and other fees paid for courses taken in 2020 and subsequent taxation years. The credit will be the lesser of the individual’s Canada training credit limit for the taxation year, and half of the eligible tuition and fees paid to an eligible educational institution in respect of the year

• This credit began to accumulate in 2019 tax year for use in 2020 tax year and future years

• Starting in 2019, an eligible individual is able to accumulate $250 in each year, up to a maximum of $5,000 in a lifetime

• In 2019 and subsequent tax years, an individual who is at least 25 years old and less than 65 years old at the end of the year can accumulate $250 towards the individual’s Canada training credit limit (for the next year), provided they satisfy all of the following conditions with respect to the year:

  • file a tax return for the year;

  • be resident in Canada throughout the year;

  • have a minimum income of $11,821 and a maximum income of $173,205 (in 2025; these are indexed amounts) from:

    • maternity and parental benefits, and

    • working income (income from an office or employment, business income, the taxable part of scholarship income and research grants, the tax-exempt part of earnings of status Indians and emergency service volunteers, and income under the Wage Earner Protection Program Act).

  • have individual net income for the year that does not exceed the top of the third tax bracket in that year

• The Canada training credit limit for a year is equal to their Canada training credit limit for the previous year minus any Canada training credit claimed in the previous year plus the annual accumulation of $250 in the previous year. 

• The amount of the Canada training credit will be the lesser of:

  • half of the eligible tuition and fees paid in respect of the year, and

  • the individual’s Canada training credit limit for the taxation year.

• The Canada training credit claimed on your income tax and benefit return will reduce your tax owing. If the credit is more than your tax owing, you will get a refund for the difference.

• You can claim the Canada training credit for a taxation year if you satisfy all the following conditions:

  • you file an income tax and benefit return for the year;

  • your Canada training credit limit for the year is greater than zero;

  • you are resident in Canada throughout the year;

  • tuition or fees are paid to an eligible educational institution in respect of the year; and

  • the tuition and fees are otherwise eligible for the existing tuition tax credit.

• Note that individuals under the age of 26 or over the age of 65 at the end of a year have a Canada training credit limit of zero and thus cannot claim the Canada training credit for tuition and fees incurred in respect of that year.

• Eligible tuition and fees for the Canada training credit will be the same as under the existing rules for the tuition tax credit. In particular, eligible tuition and fees will include:

  • tuition fees

  • ancillary fees and charges (e.g., admission fees, exemption fees and charges for a certificate, diploma or degree); and

  • examination fees.

• You may be able to claim both the Canada training credit and the tuition tax credit in the same year. However, in calculating your tuition tax credit, your eligible tuition and fees paid for the year will be reduced by the Canada training credit you claim in that year.

• Your Canada training credit limit will be communicated to you each year on your Notice of Assessment (NOA) and will be available through the CRA’s My Account portal.

• You cannot transfer any unused Canada training credit limit to another individual. Any balance at the end of the year you turn 65 will expire. Therefore, no determination of your Canada training credit limit will be made for any year following the year you turn 65.

The Canada Workers Benefit is a refundable tax credit that is available to taxpayers and their families who are working and earning a low income. More information about the Canada Workers Benefit can be found here.

Advance Payments

Starting in July of 2023, advance payments of the CWB were issued automatically to taxpayers who were entitled to receive this benefit in the previous tax year. These payments are made in the form of three payments with the total paid representing 50% of the CWB benefit eligibility for the prior taxation year. These taxpayers will be issued an RC210 form to include on their 2025 income tax return.

A deduction is available for certain carrying charges paid for in a year by taxpayers, the most common being:

• Management fees paid for non-registered investments (Note here that management fees paid for registered investments, such as FHSA, RESP, RRSP, RRIF, LIF, and TFSA accounts are NOT eligible)

• Interest paid on funds borrowed to earn taxable investment income such as interest and dividends

• Fees for certain investment advice

• Reasonable fees, that have not already been deducted, to have someone prepare or assist you in filing your return if you have income from a business or property

Donations made to eligible charitable organizations may be eligible for non-refundable tax credits. Donations may be carried forward for up to 5 years. Taxpayers may choose to claim donations made in multiple years at the same time, so as to take advantage of the higher credit percentage for donations exceeding $200.

Higher Tier for High Income Taxpayers

Beginning in 2016, there are new tiers being applied to charitable donations for taxpayers who are subject to the new 33% tax bracket. For taxpayers whose federal tax rate is 33%, charitable donations will be calculated as:

• 15% on 1st $200

• 33% on the amount of donations (after the 1st $200) that is equal to the amount of income being taxed at 33%

• Remainder at 29%

Child care expenses can be claimed for child care expenses made to:

• Caregivers providing child care services

• Day nursery schools and daycare centres

• Educational institutions for the part of the fees that relate to child care services

• Day camps and day sports schools where the primary goal of the camp is to care for children

• Boarding schools, overnight sports schools, or camps where lodging is involved

Eligible expenses are deductible from income if they enable you or your spouse to be employed or in school. The expenses must generally be deducted from the spouse with lower income for that tax year. The maximum deductions are $8,000/child under 7 years of age, $5,000/child aged 7-16, and $11,000 for disabled children. In addition, the deduction cannot be greater than 2/3 of the taxpayer’s earned income for the year.

This tax credit has been eliminated for 2025 and future tax years.

A deduction may be allowable for taxpayers who have an impairment in physical or mental functions and incurred expenses that were paid in the year so that they could:

• work

• go to school

• do research for which you received a grant

Only the person with the disability can claim expenses for this deduction.

More information can be found about the Disability Supports Deduction here.

This is a non-refundable tax credit available to taxpayers who have a severe and prolonged impairment in physical or mental functions resulting in a marked restriction. To qualify, the taxpayer and their medical practitioner must complete a T2201: Disability Tax Credit Certificate and submit this either online or by mail to Canada Revenue Agency for processing and approval. For more information, visit canada.ca/disability-tax-credit. Note that Canada Revenue Agency can retroactively approve this tax credit for up to 10 years based on the information provided by the medical practitioner.

Beginning in 2017, Education and Textbook credits have been eliminated; however, Federal Tuition credits will continue to be eligible Federal tax credits. Note that any carryforward Education and Textbook amounts from prior years will be honoured and can still be claimed in future years.

Taxpayers who are employees and have eligible out-of-pocket expenses related to their employment income may be eligible to claim a deduction on their income tax return. To qualify, the employee must have a form T2200: Declaration of Conditions of Employment or a form TL2: Claim for Meals and Lodging Expenses (for transport employees) completed and signed by their employer to claim this deduction. Expense eligibility is based on the information provided on the T2200 or TL2 form as well as the taxpayer’s employment status (commissioned-based vs non-commission based), and industry type. More information can be found here.

Effective April 1, 2023, this new registered account type is available for first-time home buyers to save to buy or build a qualifying first home tax-free (up to certain limits). More information about the First Home Savings Account can be found here.

This Federal benefit is being renamed and replaced by the Canada Groceries and Essentials Benefit. Please review the aforenamed section above for more information.

This is a non-refundable tax credit offered by the Federal government that benefits the taxpayer by 15% of up to $20,000 spent on qualifying home renovations to help homeowners cover the costs of renovations that make their home more accessible and safer. General home renovation expenses are not currently eligible for any tax credit. To qualify, the taxpayer must be 65 years or older or claiming the DTC or have a family member meeting these requirements living with them.

Taxpayers may have an eligible expense that also qualifies as a medical expense.  If so, the expense can be claimed as a medical expense and a home accessibility expense for 2025. Starting in 2026, these types of expenses may only be claimed as a Home Accessibility Tax Credit OR a medical expense, but not both.

More information about who can claim the Home Accessibility Tax Credit, what types of eligible expenses can be claimed, and the amount(s) that can be claimed can be found here.

This non-refundable credit is available to first time homeowners at a benefit of 14.5% of $10,000 for 2025. To qualify, neither the taxpayer nor their spouse or common-law partner may have owned a home in the tax year or the four preceding tax years. This credit can be shared among first time home buyers who have purchased a home together.

The Home Buyer’s Plan allows a taxpayer to borrow funds temporarily from an existing RRSP to buy a house as long as neither spouse/common-law partner has owned a home in the last 5 years. The maximum amount that can be withdrawn tax-free is $25,000 per individual before March 19, 2019, $35,000 per individual between March 19, 2019 and April 15, 2024 and $60,000 for withdrawals after April 16, 2024. Both spouses may withdraw for a total maximum of $50,000/$70,000/$120,000 (depending on the withdrawal date). This RRSP loan must be repaid within 15 years, beginning on the 2nd year following the year of withdrawal (minimum payment of 1/15 of the original withdrawn amount per year) and unlike regular RRSP contributions, the amount of the payment is not deductible from income. The taxpayer may participate in the Home Buyer’s Plan in conjunction with the Lifelong Learning Plan (see below).

The temporary flat rate method and the simplified T2200S methods for claiming home office expenses are discontinued for tax year 2023. For tax year 2024 and future, employers must complete and sign the T2200 form and provide a copy to the employee if the employee chooses to deducted expenses from their income. These expenses can include work-space-in-the-home expenses, vehicle expenses, and a variety of other expenses.

For prior tax years, there were a number of methods available:

1)     Temporary Flat Rate Method (Available for tax years 2020 – 2022 only; discontinued for tax year 2023 and future)

• The temporary flat rate method simplified the taxpayer’s claim for home office expenses.

• Taxpayers are eligible to use this method if they worked more than 50% of the time from home for a period of at least four consecutive weeks in 2020, 2021 or 2022 due to the COVID-19 pandemic.

• To use this method to claim the home office expenses you paid, the taxpayer must meet all of the following conditions:

  • The taxpayer worked from home in 2020, 2021 or 2022 due to the COVID-19 pandemic

  • The taxpayer worked more than 50% of the time from home for a period of at least four consecutive weeks in 2020, 2021 or 2022

  • The taxpayer is only claiming home office expenses and is not claiming any other employment expenses

  • The taxpayer was not reimbursed for all of their home office expenses by their employer

• Taxpayers can claim $2 for each day worked from home during that period plus any additional days worked at home in 2020, 2021 or 2022 due to the COVID-19 pandemic.

• Days that can be counted:

  • days that the taxpayer worked full-time hours from home

  • days that the taxpayer worked part-time hours from home

• Days that cannot be counted:

  • days off

  • vacation days

  • sick leave days

  • other leave or absence

• The maximum that a taxpayer can claim using the new temporary flat rate method is $400 (200 working days) per individual in 2020 and $500 (250 working days) per individual in 2021 and 2022.

• No employer documentation is required; the taxpayer’s employer does not need to complete and sign Form T2200 or T2200S

2)     Simplified Declaration of Conditions of Employment for Working at Home due to COVID-19  (T2200S) (Available for tax years 2020 – 2022 only; discontinued for tax year 2023 and future)

• Employers can use this form for employees who worked from their home in 2020, 2021 or 2022 due to Covid-19 and are only claiming home office expenses

• Employers must complete and sign the T2200S form and provide a copy to the employee if the employee chooses to use the detailed method to calculate their home office expenses. If the employee is required to pay for expenses other than home office expenses, the employer should complete form T2200 instead

 3)     Declaration of Conditions of Employment (T2200) - This is the only option available for tax year 2024 and future

• Employers must complete and sign the T2200 form and provide a copy to the employee if the employee chooses to deducted expenses from their income. These expenses can include work-space-in-the-home expenses, vehicle expenses, and a variety of other expenses.

 *Note that if the employee is using a shared space in the home, the expenses should be further prorated by the number of hours worked per week / 168 total hours in a week

Taxpayers may be able to claim a deduction for legal fees incurred in the following situations:

• As they relate to taxable support payments that their current or former spouse or common-law partner, or the natural parent of their child, paid or will have to pay (generally, related to spousal support only; not child support)

• Certain fees paid by the taxpayer to try to make child support payments non-taxable

• Fees that were paid to collect (or establish a right to) a retiring allowance or pension benefit. Taxpayers can claim only up to the retiring allowance or pension income received in the year minus any part of these amounts transferred to a RRSP or RRP. Taxpayers can carry forward the legal fees tha could not be claimed in the year for up to seven years

• Fees that were paid in the year to collect or establish a right to salary or wages owed to the taxpayer

• Fees including any related accounting fees that were paid:

  • For advice or assistance to respond to the CRA when the CRA reviewed the taxpayer’s income, deductions or credits for a year

  • To object to or appeal an assessment or decision under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan or the Quebec Pension Plan

The Lifelong Learning Plan allows a taxpayer to withdraw funds temporarily from an existing RRSP for full-time post-secondary education. The maximum amount that can be withdrawn tax-free is $20,000 total, and $10,000/year. The taxpayer’s spouse or common-law partner may also withdraw from the RRSP to double the maximums. This RRSP loan must be repaid within 10 years, with a minimum payment of 1/10 of the original withdrawn amount per year. Repayment must begin in the fifth year following withdrawal or the second year after the taxpayer stops studying full-time, whichever comes first. LLP repayments are not deductible for tax purposes. Once repaid, the taxpayer can participate in the LLP again with the same maximums and requirements. The taxpayer may participate in the LLP program in conjunction with Home Buyer’s Plan (see above).

In general, this is a non-refundable tax credit for out-of-pocket medical expenses incurred in the year by the taxpayer, their spouse or common-law partner, and in certain situations, individuals who depended on them. A Medical Expense Supplement may also be available for taxpayers in households with earned income within a certain threshold. In addition, the Province of Ontario offers a refundable credit, called the Ontario Seniors Care at Home Income Tax Credit based on out of pocket medical expenses paid for by low- to moderate-income seniors 70 years and older.

An up to date list of eligible medical expenses that can be claimed for yourself, your spouse or common-law partner, or another individual who depended on you for support can be found here.

A taxpayer may deduct eligible moving expenses from the employment or self-employment income earned at their new place of employment if they have moved at least 40 kilometers closer to the new location. Similarly, a student may deduct moving expenses if they have moved 40 kilometers closer to the educational institution to study as a full-time student. Students can only deduct these expenses from scholarships, bursaries, fellowships and certain grants and prizes that are required to be part of their taxable income. The new home must be the ordinary residence of the taxpayer and generally, the old and new home locations must both be from within Canada. Taxpayers wishing to claim this deduction must complete the form T1-M.

Effective Jan 1, 2023, this is a new refundable tax credit of up to $7,500 (15% of $50,000) in 2023/2024 and $7,250 (14.5% of $50,000) in 2025 that is available for a qualifying renovation to an eligible dwelling that is completed to allow a qualifying individual to live with a qualifying relation. Only one qualifying renovation can be claimed per qualifying individual in their lifetime and the credit must be claimed in the taxation year that includes the end of the renovation period (i.e. when final inspection or proof of project completion is received). This means some taxpayers will want to look for receipts for expenses that occurred prior to 2023. The claim is for costs spent to construct a secondary suite in the taxpayer’s home for a senior (65+) or disabled adult.  These tenants are known as the “eligible person.” In the case of adults with disabilities, these individuals must be at least 18 years of age and must be eligible for the Disability Tax Credit. The eligible person must be a parent, grandparent, child, grandchild, brother, sister, aunt, uncle, niece or nephew of the eligible person and their spouses/common law spouse.  The credit may be split between claimants so long as the total cost of the claim does not exceed $50,000. One qualifying renovation is permitted for of an eligible person over their lifetime. A “qualifying individual” who can make this claim will ordinarily reside or intend to reside in the dwelling being renovated within 12 months after the end of the reno period or be the spouse or qualifying relation of the “eligible person”. The renovation, alteration or addition to the eligible dwelling must be of an “enduring nature” and integral to the eligible dwelling.  It must, of course, be undertaken to enable an eligible person to reside there with their qualifying relation. It is also important to establish a secondary unit within the dwelling which is self-contained.  It must be a private residence with a private entrance, kitchen, bathroom facilities and sleeping area. It can be newly constructed or created from an existing living space. Building permits for establishing a secondary unit must be obtained and renovations must be completed in accordance with the laws of the jurisdiction in which an eligible dwelling is located. The vendor must be GST/HST registered. More information about the Multigenerational Home Renovation Tax Credit can be found here.

This is a refundable tax credit available to Ontario residents that is calculated based on family income and eligible child care expenses for the year. Taxpayers can claim up to 75% of their eligible child care expenses, including services provided by child care centers, homes and camps. Families with adjusted household incomes of up to $150,000 can receive additional amounts of up to:

• $6,000 per child under the age of seven

• $3,750 per child between the ages of seven and 16

• $8,250 per child with a severe disability

The Ontario Child Care Tax Credit is calculated as a percentage of the Child Care Expense Deduction. The Child Care Expense Deduction provides provincial and federal income tax relief toward eligible child care expenses.

An automatic top‑up of 20 per cent of the credit entitlement was available for the 2021 taxation year only.

The Ontario Child Benefit is a non-taxable monthly payment to help families with low incomes to provide for their children.

Effective January 1, 2025, the Ontario Fertility Treatment Tax Credit is available to Ontario residents. Eligible taxpayers can claim a refundable credit of up to 25% of eligible fertility treatment expenses, capped at $5,000 per year.

The Ontario property tax credit provides relief to low- to middle-income homeowners and tenants. This tax credit can be claimed by taxpayers who were 16 years or older, resident of Ontario on December 31 of the tax year being filed and paid rent or property tax on their principal residence. You cannot claim this credit if you were under 19 years of age at the end of the tax year and lived with someone who received a Canada Child Tax Benefit payment for you in the year or claimed you as a wholly dependent person.

Effective July 2012 and for subsequent years, payments of the Ontario Sales Tax Credit, the Northern Ontario Energy Credit and the Ontario Energy and Property Tax Credit will be combined into a single benefit payment called the Ontario Trillium Benefit.

The Ontario Sales Tax Credit program is designed to help low income individuals and families with the sales tax they pay. The amount received is NOT subject to tax and depends on the family size adjusted family net income. The payment amount is adjusted for inflation each year.

Effective July 2012 and for subsequent years, payments of the Ontario Sales Tax Credit, the Northern Ontario Energy Credit and the Ontario Energy and Property Tax Credit will be combined into a single benefit payment called the Ontario Trillium Benefit.

This grant is an annual amount provided to help offset property taxes for seniors with low to middle incomes who own their own home. The maximum grant is $500. To be eligible, the taxpayer must

• Be 64 years or older on December 31 of the tax year for which you are filing

• Be a resident of Ontario on December 31 of the tax year for which you are filing

• Have owned and occupied a principal residence on December 31 of the tax year for which you are filing (or owned by spouse/common-law partner) for which the taxpayer or spouse/common-law partner paid Ontario property taxes in the tax year for which you are filing

• Not have been confined to a prison or similar institution on December 31 of the tax year for which you are filing

• Meet the income requirements to receive the grant

This is a refundable credit available to seniors (65 years of age or older) who lived in Ontario by the end of the year and have incurred eligible public transit expenses incurred on or after July 1, 2017. Taxpayers can claim up to $3,000 in expenses per year.

Effective July 2012, payments of the Ontario Sales Tax Credit, Ontario Energy and Property Tax Credit and Northern Ontario Energy Credit will be combined into a single benefit payment called the Ontario Trillium Benefit.

Payment Schedule: In general, if your OTB entitlement for the year is:

• $2 or less, you will not receive a payment (in accordance with the general CRA rule of not charging or refunding amounts of less than $2).

• Between $2 and $10, it will be increased to $10 and paid out as a single payment.

• Between $10 and $360, and if you file your tax return by April 30th, you will receive a single payment in July. If you file your return late, it will be paid in your first payment month.

• Over $360 ($30/month) and if you file your return by April 30th, you will receive monthly payments (July - June) unless you opt for one lump sum which would be paid out in the final month only (June of the subsequent year).

Beginning in 2016, Canada Revenue Agency is requiring taxpayers to report the sale of all properties, including those that are considered to be their primary residence and therefore eligible for a full exemption from capital gains or losses. The taxpayer must report:

a)     Description of the property (address)

b)    Date of acquisition

c)     Proceeds of disposition

The penalty for late reporting is $100/month to a max of $8,000 and is payable even if no tax was payable on the disposition

Beginning in 2017, in all cases where a disposition of a principal residence has been realized, form T2091 or T1255 must be completed.

Taxpayers may be eligible to claim a deduction for out-of-pocket expenses paid for professional fees or union dues. These include the following fees related to employment:

• annual dues for membership in a trade union or an association of public servants

• professional board dues required under provincial or territorial law

• professional or malpractice liability insurance premiums or professional membership dues required to keep a professional status recognized by law

• parity or advisory committee (or similar body) dues required under provincial or territorial law

More information about Annual Union, Professional, or Like Dues can be found here.

A Registered Education Savings Plan (RESP) is a registered savings account designed to help parents and guardians save for a child’s post-secondary education. Contributions to an RESP grow tax-free while invested in the RESP, and some contribution amounts are eligible for government grant contribution matching. Although contributions are not deductible, only the government grant portion of withdrawals are taxable, and these are taxable to the student, who in most cases, is in a lower tax bracket and will have the tuition amount tax credit to help offset the income, if necessary.

A Registered Retirement Income Fund (RRIF) is a registered account that is generally opened via a transfer in of Registered Retirement Savings Plan (RRSP) funds. Generally, an RRSP must mature by the last day of the year in which a taxpayer turns 71. On maturity, the funds must be withdrawn, transferred to a RRIF, or used to purchase an annuity. There are no immediate tax implications when amounts are transferred to a RRIF or used to purchase an annuity. If the taxpayer chooses to transfer the funds to a RRIF, there will be a minimum annual withdrawal amount required. Any amounts including the minimum annual withdrawal amount will be reported on a T4RIF as taxable income in the year. Generally, the minimum annual amount is not subject to withholding tax at source.

A Registered Retirement Savings Plan (RRSP) is a registered account held by a financial institution, generally with the purpose of saving for retirement. Subject to the taxpayer’s annual RRSP contribution limit, a deduction may be available for contributions made to a taxpayer’s (or their spouse’s) RRSP account in the year. The reporting period for RRSP contributions does NOT follow the calendar year. Taxpayers should provide official income tax receipts for contributions made:

• In the remaining 10 months of the calendar year for which the tax return is being prepared AND

• The 1st 60 days of the subsequent calendar year

For the 2025 income tax return, taxpayers should report all contributions made in the remaining 10 months of 2025 and the 1st 60 days of 2026. The deadline for contributing to RRSPs in 2026 is Monday, March 2, 2026.

Please review the Home Buyer Plan and Lifelong Learning Plan sections above for additional tax measures relating to RRSP accounts.

Please review the Registered Retirement Income Fund (RRIF) section above for more information about RRSP accounts that transferred to RRIF accounts after a taxpayer turns 71 years of age.

Starting in 2014, a new non-refundable tax credit is available for qualifying volunteers who perform at least 200 hours of eligible search and rescue services in the year. This $6,000 credit is similar to the existing Volunteer Firefighter Tax Credit (VFTC), and in fact, the qualifying volunteer hours can be combined for both types of volunteer activity, however, only one of the tax credits can be claimed.

This tax credit will allow employee taxpayers who are eligible educators to claim a 25% refundable tax credit based on an amount of up to $1,000 of purchases of eligible teaching supplies by the employee in a taxation year. To be eligible, the supplies must be:

• purchased for teaching or facilitating learning, and directly consumed or used in an elementary or secondary school or in a regulated child care facility in the performance of the teacher or educator’s duties of employment;

• not reimbursable and not subject to an allowance or other form of assistance

• not deducted or used in calculating a deduction from any person’s income for any taxation year.

• consumable, with the exceptions of specified prescribed durable goods including:

  • games and puzzles

  • books

  • containers such as plastic boxes or bankers boxes

  • educational support software

  • laptops, desktop and tablet computers (provided that none of these items are made available to the eligible educator by their employer for use outside of the classroom),

  • printers,

  • multimedia projectors,

  • video streaming devices,

  • speakers,

  • electronic educational toys,

  • wireless pointer devices,

  • external data storage devices,

  • webcams, microphones and headphones,

  • calculators (including graphing calculators),

  • digital timers,

  • digital educational programs, and

Other non-consumable items such as tablets, computers, rugs for children to sit on are NOT eligible.

To claim this credit, the taxpayer must be able to produce a signed certificate from a school official on request

Contributing to a Tax-Free Savings Account allows taxpayers to set money aside, tax-free, throughout their lifetimes. Although contributions to a TFSA and the interest on money borrowed to invest in a TFSA are not tax deductible, the income generated in the TFSA is tax-free when withdrawn. To contribute to a TFSA, the taxpayer must be a resident of Canada, at least 18 years of age, and have a valid social insurance number (SIN). The lifetime contribution limit for 2025 is $109,000 for eligible taxpayers who were 18 years of age or older in 2009.

New for the 2025 tax year, this non-refundable tax credit will be available for taxpayers who are claiming certain non-refundable tax credits that are affected by the reduction to the lowest marginal individual income tax rate from 15% to 14.5%. The top-up tax credit (TTC) effectively maintains a 15% rate for certain non-refundable tax credits claimed on amounts over the first income tax bracket threshold of $57,375 for 2025.

Taxpayers may deduct up to $1,000 from their net income for eligible tools purchased to earn employment income as a tradesperson so long as the total expense amount exceeds the annual threshold ($1,471 for 2025). This cost includes and GST, PST, or HST paid.

This is a non-refundable tax credit available for taxpayers who paid for tuition expenses to a qualifying educational institution in the year without reimbursement. The expense must be at least $100 and the taxpayer should provide:

• T2202 for tuition amounts paid to an educational institution within Canada (typically available for students to access on their online account with the educational institution),

• TL11A for tuition amounts paid to an educational institution outside of Canada (the student may need to request this from the registrar’s office of the educational institution), or

• Receipt(s) from the educational institution

Unused tuition amounts may be transferred to the student’s parent, grandparent, spouse or common-law partner (subject to an annual maximum), or may be carried forward on the student’s income tax return for future use.

See the “Professional Fees and Union Dues” section above for information.

This is a non-refundable tax credit equal to 14.5% of $6,000 ($870) in 2025 is available for volunteer firefighters who have completed at least 200 hours of volunteer firefighting services with one or more fire departments in the year.