2025 Tax Changes in Canada (Tax Brackets, RRSP, TFSA, RESP, CPP, EI, GST/HST Rebate)

[@jessicamoorhouse]

*Correction: The deadline to make a contribution to your RRSP and make it count as a deduction on your 2024 taxes is Monday, March 3, not March 1 as stated, since that day lands on a weekend).

[@arviragusarter3347]

Also, February 29, 2025 is a non-existent date 🤔 4:43

[@iczemi]

I wish the government reads this: The CPP and OAS should not be subject to taxation, period.

[@jimclarence5441]

Even worse because I saved my money, my OAS is reduced after 85,000 dollars and is cut out altogether at 129.000. Because I'm a widower, I have no income splitting.

[@dllion3196]

OAS is not actually subject to taxation. The reason is as you qualify for OAS, you also get an increase in your personal tax credit. The old system of calculating taxes (pre-1990’s)😊 made this more evident than today’s system. CPP is money that you and your employer put aside that has never been taxed. As some people get the maximum CPP and others get a minimal amountc depending on how much they earned over the years, it only makes equitable sense it gets taxed.

[@brettthomas5605]

Remember: The CPP deductions from your paycheck during your working years was a tax deduction! Most people tend to forget about this yearly deduction on their tax returns. A tax deduction against your high earning years of taxable income! Basically a tax break while working. So now in retirement the government is attempting to get a small portion of that tax break back. The game in retirement is to minimize the claw back in taxes that the government wants returned to the treasury. Upon your death the government attempts to get it all back! Estate taxes!

[@brettthomas5605]

​@@jimclarence5441I believe you're referring to the OAS threshold, which is $ 90,997 in 2024. If you have a taxable income greater than this amount, then your OAS will be clawed back beginning in July,2025. The clawed back amount is recorded as tax paid to the government during 2025. So it becomes a tax installment as paid on your 2025 tax return

[@jimclarence5441]

@@brettthomas5605 You're right but it seems unjust that there is a clawback. Starting next year when I start collapsing my RRSP, my income might be 140,000 dollars.

[@adrianknaud3923]

The Tax brackets are the main reason we have poor people sleeping on the streets or living in their mothers' basements. Under $ 57,375 should be taxed at 5% not 15% and the rest of the brackets could increased to make up the difference in lost revenue or eliminate pensions for MPs and scrap the Senate and their pensions as well. Take your pick. Being in government should be an honor rather than a get rich quick and stay rich for life scheme. Call me crazy but if you can't balance the budget then you don't deserve to be major part of the deficit.

[@cory5258]

So I should pay even more taxes than I already am (and will be going into 2025) because I make more than 57 grand? And because I make more thanks to education and/or doing jobs that others don’t/ can’t/ say they never would, then I need to pick up THEIR slack? Yeah that sounds totally reasonable and fair. If someone that makes 57k at some low skill job expects a lowly 5% tax while also expecting people who make more, and I’m not talking hundreds of thousands more, but just even crossing into the next bracket, to pay even more just so that the guy earning 57 can lively comfortably… then you’re part of the problem.

[@adrianknaud3923]

@@cory5258 No, you should not. The rich should pay more. If you are just over 57 grand to 100 grand you should stay the same as now. As your wages increase your taxes should increase. The very rich use tax loopholes to pay nothing at all. That's why we have problems and social unrest. Prevent riots and crime and suicide and family break up . Be fair and reasonable .

[@lex4929]

The basic personal exemption is ridiculously low. It should not be less than 30000. Make it up in the highest bracket

[@michaeleekim]

Great overview of all of the tax changes! The RRSP also had the first time home buyers withdrawal limit increase to $60K from $35K

[@jessicamoorhouse]

Correct! Though that change happened in April 2024 which is why I didn’t include it for this 2025 update. But important to know!

[@CanadianTShirt]

Great video Jess! 🙌 I can't wait to read your book soon! 😁

[@jessicamoorhouse]

And right back at ya with your always fabulous annual vid 😉

[@CanadianTShirt]

@@jessicamoorhouse thanks Jess! It's become an annual tradition! 😊

[@Aviral.Parashar]

Thank you. As a newcomer to Canada AND with no financial background whatsoever, this crisp and informative video really helped. Loved the slides you made!

[@jessicamoorhouse]

Thank you!

[@brettthomas5605]

I remember the good old days when they used to teach economics and budgeting in high school. People seem to understand how to handle money and were more informative when it came to taxes.

[@jessicamoorhouse]

I wasn't taught anything personal finance related in school, hence why I had to learn on my own after graduating university. Luckily many schools in Canada are now which is very reassuring for future generations.

[@knowtheebetter]

Thanks, Jessica. I always like the way you explain things. Hope the book launch will go well.

[@jessicamoorhouse]

Thanks so much! And fingers crossed with the book, less than a month to go!

[@megabaneen8057]

Thanks for staying on top of things for us Jess

[@rezaahari2207]

Very in simple words ,educational tnx

[@Pansy-fm4vc]

Great info. Thank you very much. 💕

[@jessicamoorhouse]

Thanks for watching and commenting!

[@Rational_Investor]

Good video, but there is an error that needs to be corrected at 4:48: 2025 is not a leap year. The RRSP contribution deadline is actually Monday, March 3rd, 2025 for the 2024 Tax Year (because March 1st fall on a weekend).

[@jessicamoorhouse]

You're right! I should have double-checked that date. And good news for people that they've got til the Monday to make a contribution.

[@ORIGINALJRL]

Wow, so these numbers keep going up, but the only number not going up is Canadians'wages.

[@cheungd08]

Nicely done. Thorough and clear. Thx

[@jessicamoorhouse]

Thank you! Appreciate it!

[@marchadwick]

How much tax do MPP's pay in income tax ?? Solman

[@Eron55555]

How can someone who earn's tax payer's dollars , pay tax at all? They do NOT contribute to GDP.

[@Sieteeight]

That was so well explained, I learned very quickly easy to grasp, straight to the point. Thank you I’ll subscribe

[@jessicamoorhouse]

Thank you!

[@dexterbartholemew6752]

Eliminate OAS clawback, or at least raise the exemption threshold.

[@geofiggy]

Hey Jess in your update around video marker 4:51 you mentioned RRSP By Feb 29, 2025, but I think it only goes to the 28th

[@jessicamoorhouse]

March 3 is actually the correct date to make a contribution to your RRSP in 2025 and make it count toward your 2024 taxes. I've made note of the correct date in the Chapter title, the pinned comment, and in the description of the video www.nbc.ca/personal/savings-investments/rrsp/deadlines.html

[@jacquescote-bt7rv]

Thanks for the info. I hope you will be doing this every year. Maybe you could comment on the best way and cheepest way to do your taxes! Ex: free access to software etc.

[@jessicamoorhouse]

I've actually got a video coming up on how to save on income taxes. But in terms of the cheapest way to file, online tax software like Wealthsimple Tax which is free or others like Turbotax which have a relatively low fee.

[@laurabaker5376]

With Trudeau’s terrible GST holiday tax break on purchases was there not something that every Canadian gets a $250 check in the new year as well?

[@valveman12]

Well done, Jessica! 👍

[@jessicamoorhouse]

Thank you!

[@allanmadan9959]

You are missing the provincial surtax. According to your calculations, the top marginal tax rate is 46%, which is incorrect. With the ON surtax, the top rate is 53%.

[@jessicamoorhouse]

I didn't get into the Ontario surtax in this video (but a great idea for a future one!), however for anyone interested in learning more, you can find some great info here: www.taxtips.ca/taxrates/on.htm

[@soniamarchand8121]

And if you don’t file then you don’t go into contract with the CRA…

[@section85rollover]

Off by $1 on a number of thresholds. Example: the 20.5% rate applies to income between/from $57,376 to $114, 750 inclusive. The BPA is $16,129 if TI is

[@jessicamoorhouse]

You can find the federal tax rates and BPAs for 2025 here on the CRA website: www.canada.ca/en/revenue-agency/services/tax/individuals/frequently-asked-questions-individuals/adjustment-personal-income-tax-benefit-amounts.html

[@brl6219]

Have they announced yet the cpp percentage increase for retirees receiving cpp for 2025?

[@jessicamoorhouse]

I believe those will be announced in January, the government's website still only shows the 2024 CPP retirement benefit amounts.

[@brettthomas5605]

I believe I saw it as 2.6% or 2.7% on whatever you're receiving in 2024. I believe it's already on the government website. All based on the CPI data!

[@jessicamoorhouse]

@@brettthomas5605 Do you have the link if you saw it on the government website?

[@sanjivraj9160]

Great video. Let’s say you contributed 20k to your tfsa in 2024, now the total gain in stock and dividend equals around 10k. So at December if you pull 30k , in January will you get 20k+7 k or 30k+7k as your contribution room.Please advise.Thanks!

[@jessicamoorhouse]

You'd get the $30k + $7k! One of the reasons TFSAs are awesome. You can let the money inside it grow and it will effectively also grow your TFSA contribution room.

[@sanjivraj9160]

Thank you!

[@antonguri4923]

How about for retired yeah, same bracket or different bracket when you retire at 65 years old

[@jessicamoorhouse]

No, there aren't different tax brackets for people who are retired and people who are not, but great question (never been asked that before). With that said, when you retire, typically you will drop into a lower tax bracket because you are no longer working and earning income from your job, and will only pay tax on income like RRIF withdrawals, investment returns in taxable accounts, CPP payments and OAS payments.

[@EyeFoodForYou]

Nice! Thank you :)

[@jessicamoorhouse]

And thank you for watching!

[@fisayof6219]

What’s the deadline to contribute to your TFSA so you do t unknowingly over contribute while thinking you’re already contributing for the new year

[@jessicamoorhouse]

Dec. 31 (though don’t forget if you don’t max out your TFSA you carry forward unused room to the next year). Then Jan. 1 you get the $7,000 in new contribution room.

[@R3DxHOOD]

So if you pre-ordered your book now would we pay taxes? Or is it best to wait till December 14th to pre-order to save on those taxes?

[@jessicamoorhouse]

A great question! So in Canada only GST is charged on books, so with the tax break you’d only be saving an additional 5% or $1.25 on the paperback if you waited to pre-order or buy it when it’s out. So not the biggest amount of savings but hey, why not take advantage of it if you can? But looks like it excludes e-books and audiobooks so it would only apply to the printed book. Here’s a more detailed list of what’s covered and not covered under the tax break: globalnews.ca/news/10894075/gst-holiday-items-canada/amp/

[@isaacfrohlich4575]

Yes, it would kick in on any purchases made after December 14, regardless of when the item is delivered.

[@tharmanagules8495]

Where is corruption money from taxpayers? Need to payback to all taxpayers

[@tharmanagules8495]

How much pay you for this advice?

[@TheSwisscanada]

Very informative. My question to you is about the TFSA. When you reach the 102'000, with interest it's more, are we covered by CDIC, the insurance ? I try to use there calculator and it tells me always covered up to $ 100'000. Even if the TFSA are in different GIC it tells me $ 5000.- ( over the 100'000 with interest) are not covered. SCARY...

[@jessicamoorhouse]

Only cash, GICs and term deposits are covered in a TFSA remember, but anything over the $100,000 limit would not be covered under CDIC. So alternatively, to get full coverage, open a TFSA at two (or more) different financial institutions, since you get that $100,000 coverage per category (TFSA) per financial institution.

[@vega2556]

@@jessicamoorhouse Thank you a thousand times, didn't know that i can open TFSA GIC in different Banks. If I understand you right, I have now 98'000 TFSA GIC in Tangerine and Now the next 7'000 I can open in an other Bank a TFSA GIC???? Thanks for being patient with me...

[@jessicamoorhouse]

@@vega2556 You can open as many TFSA accounts as you want at as many financial institutions as you want. You're only limited by your available TFSA contribution room. You can also put cash, GICs, or other investment types inside like stocks, bonds, mutual funds, and ETFs for example. But if you have a TFSA with Tangerine with $98,000 worth of GICs inside, it may be a good idea to open another TFSA at a different financial institution for additional CDIC coverage so you don't go over their coverage limit.

[@vega2556]

@jessicamoorhouse Thank you...that was exactly the answer I was looking for. 💝

[@vega2556]

@jessicamoorhouse Happy Holidays

[@Stmcead]

Why do I also think of the Sopranos whenever I hear what the government does to shake us down?

[@felix842002]

If i earn 120K a year do i get taxed in stages of tax bracket like for example first 50kwill be 20% and next 50k is taxed at 26% and next 20k at 30%..or will I be taxed 120k at 30% totally? I hope i made sense to u. Thanks.

[@jessicamoorhouse]

In stages. I explore this in my video about income taxes in Canada kzbin.info/www/bejne/o3mxqaB7m5alqdE

[@geekinasuit8333]

I earn enough, that I simply divide my income in two, that's how much I really earn. It doesn't take much before you are paying essentially a full 50% on the total you earn, the brackets are nasty. We should not forget about the GST+PST/HST, and the many other hidden taxes on many different items. I'd probably be OK with it, if the money was spent on something visibly useful, but all it seems to do, is disappear down the drain. The very few things a politician will speak about, are tiny benefits that I'm not eligible for, or will never need even if I am eligible for it. Only very low income people can, maybe, see some benefit, but for the most part, it's negligible. Even low income members of our society tend to be left out, like that insane $250 GST rebate which will further indebt the country, and extract tax money for more useless bureaucracy, etc.

[@halimaonigbinde]

Please can you explain the difference between CPP and RRSP, moreso, why do we pay both since they are both related to pension?

[@jessicamoorhouse]

Every person over the age of 18 who works in Canada outside of Quebec and earns more than a minimum amount ($3,500 per year) must contribute to the Canada Pension Plan (CPP). Depending on how much you've contributed, you will then receive a certain CPP benefit amount when you retire to supplement your retirement savings to live on. An RRSP is not a pension and it's not mandatory to open an account or contribute to. It's a savings vehicle you can use to invest money inside, provides tax deductions for contributions, and when you retire, you convert it into a RRIF, then withdraw funds to live on.

[@halimaonigbinde]

@jessicamoorhouse thank you so much Jessica for the explanation and prompt response. This is well understood

[@kathybradley9873]

Ya, tax break ..... right. It may save the average person 20 bucks over that 2 month period. I've seen some estimates at only around 4 bucks. Not a break at all. Would rather see them take away the carbon tax, now that would save us all quite a bit.

[@geekinasuit8333]

Meanwhile, they've increased taxation well beyond what any fake "tax break" will provide. Imagine, what will a measly $250 "rebate" do? Buy you a turkey dinner? But, then the country had to borrow the money to pay the rebate, which means even higher taxation is on the way!

[@kmilton1593]

You must be from Ontario, Jessica: in your 2nd segment you only showed Ontario: but guess what? There are 9 other provinces & 3 territories. (just for your info).

[@jessicamoorhouse]

I live in Ontario but I’m originally from BC, and just used Ontario as an example. Hence why I say afterwards to check the updated tax brackets for your respective province or territory since the purpose of the video was to focus on federal tax changes, not to go through every province or territory in the country.

[@dereckwinters8566]

We will never get ahead.

[@smartchap-c7t]

Is it good for cop disability

[@SumitKumarr1]

Rrsp deadline is March 3rd 2025 not Feb 29th

[@jessicamoorhouse]

Yes, and I’ve added the correction in the description of the video.

[@mohansega9812]

Thanks for your update and Jesus Christ bless you sister

[@KathyMoore-r2b]

Why do people have to pay educational tax when they don’t have children or your children are adults now? Agree paying while you have children in school but shouldn’t have to pay for other people’s children. When I was a child, albeit many years ago, my parents had to pay everything for my education.

[@werrew1379]

The sad part is lots of baby boomer had retired in low income pension some don't even earn enough to pay rent and foods. sometime I see them in the grocery store hesitating to buy that loft of bread or the meat they wish to have for dinner many time I wish I can buy it for them which I did when I can other time I feel sorry For all when foods is a nercercity not a luxury the grocery is so expensive they can't afford to get that extra steak for them or there family. Everything had increased in prices there pension have increas only a penny or two very sad for the low income pensioners they work hard there whole life to die in hunger in the old age.

[@MCscarfacematt]

or just make a living suing companies because legal awards aren't taxable😏😏 that's why child support isn't taxable because it is awarded by the court

[@francisbacon2401]

Inflation moves all up for more taxation..... Index is fake.

[@Margaret-i88]

Nice video coverage keeping up with current trends and strategies can help traders stay ahead of the curve and make informed decisions, It is important for beginners in trading and investing to understand that success in these fields requires technical analysis, emotional maturity, and self-discipline. Thanks to steve michael steele insights, daily trade signals, and my dedication to learning, I've been increasing my daily earnings. Kudos to the journey ahead

[@Margaret-i88]

He mostly interacts on Telegrams, using the user-name,

[@Pete-566]

Before i encountered steve michael steele, I was losing trades but his expertise in technical analysis, coupled with his effective risk management strategies, has helped me navigate the volatile market with confidence.

[@JohnClinton-j4d]

Thank you for sharing this valuable information. It will be especially beneficial for young investors with limited knowledge of how the market operates. Your concern is much appreciated.

[@Marenocool]

steve michael steele. gave me a basic understanding of the benefit of trading over holding, especially in a speculative market. He then provided me with his daily trading patterns; I'm now earning impressive profits daily.

[@waynetrojan]

Scrap this wholly convoluted tax scheme and go to a flat tax for all.

[@spagnial]

Yes but the government change rules when you actually do your taxes by every individual lol

[@newdimension4731]

I don't apply to ANY taxes or income stuff and i don't pay my income taxe i owe to the federal but hold them back UNTIL a new honest working government takes the seat until then, they don't get nothing from me because they are a freaking joke right now . Ta Ta and toodles too!

[@angryanne]

Well that works until you want to own something or retire 😊

[@lynnmacleod5005]

GST tax break to help the liberals regain support. Ya, none of these things on this list are essentials,,,,he is buying no votes from Canadians. We are about to save $4.50 over the two months. 😂😂😂😂

[@ogopogo1397]

This is so basic. Nonsense video

[@jessicamoorhouse]

It might be basic but it's still relevant and important to know. Thanks for the comment which is boosting this video's engagement 😉