Canada Tax Changes 2025 - RRSP, TFSA, FHSA, RRSP, CPP, GST/HST Holiday, Fed. Tax Bracket, and more!

[@marcin7570]

Great summary 🎉

[@AvalonAccounting]

Thanks!

[@philbear2185]

it is one of the very rare youtube videos when time is not wasted ...subscribed

[@Un4GivNX]

Summary: * Maximum RRSP contribution limit for 2025 increased to $32,240 (up by $930). * TFSA contribution limit for 2025 remains at $7,000, same as 2024. * First Home Savings Account (FHSA) contribution limits unchanged: $8,000 annually, $40,000 lifetime cap. * CPP standard contribution rate remains at 5.95%; maximum pensionable earnings increased to $71,500. * Maximum regular CPP contribution for 2025 is $4,434 for employees, $8,688 for self-employed. * CPP 2.0 contributions apply to income between $71,500 and $81,300, with a maximum contribution of $396. * Federal tax brackets adjusted for inflation; lowest tax bracket now applies to income up to $57,737. * Basic personal amount increased to $16,128 in 2025, up from $15,750 in 2024. * Proposed changes to capital gains tax may increase lifetime capital gains exemption to $1.25 million. * Inclusion rate for capital gains over $250,000 likely to rise to 66.7%. * Temporary GST holiday from December 14, 2024, to February 15, 2025, for various products. * Home Buyers Plan (HBP) allows first-time buyers to withdraw up to $60,000 from RRSPs, increased from $35,000. * Repayment grace period for HBP withdrawals extended to 5 years for selections made between January 1, 2022, and December 31, 2025.

[@johnmcquaid7524]

Nice work! Thank-you.

[@ramenlook3519]

Thanks for the breakdown!!

[@AvalonAccounting]

You bet!

[@jackj3542]

The F’in Canadian government needs to keep their grubby hands off retirement funds we worked and paid taxes in our whole working career.

[@Hyperpandas]

Which retirement funds are you talking about? Because, if RRSP, CPP, or a pension, you didn't pay tax on the contributions when you made them. If non-registered funds, you're still getting a tax break (capital gains or dividend rate) if you invested accordingly. If TFSA, you're not getting taxed now because you were taxed on your contributions. If OAS, it's free money you didn't pay into and you're getting for having been a resident. So what are yountalking about?

[@stanradziwon4359]

CPP “pension” for most Canadians is a joke when compared with cost of living!

[@Hyperpandas]

It's a function of what you put in and it's inflation adjusted. The higher rates will result in more payout, so does that make you happier?

[@philbear2185]

cpp is just a piece of the solution; small contribution means small payout, but it is a very good and safe investment, managed by the government. Every individual has to educate themselves financially and invest in other forms of long term savings. cpp historically was held back because of its high cost for the government; conservative governments usually want it removed entirely, because they believe private companies can manage pension funds more efficiently (not entirely true because governments can assign certain very safe investments for the goverment pension only). Overall Canada has taken this middle of the road approach, and that's why cpp contributions/payouts are so low.

[@shruthic3403]

What happens if I already to FHSA if my first home is investment property? I can’t use FHSA for investment property, can I continue contributing to FHSA since i bought my first house as investment but not primary residence?

[@singatias]

The First House Saving Account program can only be used for your first property and is not eligible to people who already bought a property in the past even if you don't have it anymore. Ask a financial advisor what to do with your FHSA. I know after 15 years of opening your account or when you reach the end of the year when you turn 71 the account must be close and transfer to a RRSP or RRIF account otherwise if you withdraw it directly it will be count as taxable income. Good luck and please stop using small properties as an investment, this is one of the major factor that affect the price of renting and buying a house.

[@overwolf730]

​​​​​​@@singatiasThis is false. Please do more research before giving people advice. If this person's property has never been lived in by that person they are fine. Also as long as someone has not owned a house as a primary residence in the last 4 years they are also allowed to use the FHSA. As always consult a professional if you are unsure.

[@singatias]

@@overwolf730 You are right, I gave an answer with the best of my knowledge. I still recommend to talk to a financial advisor no matter what is being said on the internet. Thank you for the clarification about the 4 previous calendar year.

[@sam60331]

Hi Joe/Avalon - first I love your content and second I co-own a small consulting company that serves martial arts school owners. I am in dire need of a referral partner for monthly bookkeeping services and YE accounting. My company has a great bookkeeping firm but they are a smaller firm that is already at capacity and not looking to onboard new clients (my clients are not their ideal avatar anyways). I sent an email to your general mail box about setting up a time to discuss further but thought I’d try here too 😊. Thanks for reading and thanks for putting out such great content !

[@jaethegoddexx]

TX!

[@georgek3398]

5% on some stuff, bite me

[@AvalonAccounting]

Yup, much ado about nothing unfortunately.

[@maryjeanjones7569]

Nope, Doug Ford is removing the 5% PST in Ontario during the Federal Tax Break period.

[@JacksonLeoWtah-b2i]

I bought 2 bitcoin at $40,000 wanting to exit with at least $200,000 but at the moment i am worried that bitcoin won't get to $100k in this bull run, as post halving has not seen bitcoin break its ATH. I need advice, should i cashout now and put my money in safe investments or still hangon?

[@NianLisa]

Hold on! I firmly believe Bitcoin will hit $150k this bull run. If you’re uncertain, consider consulting a CFA who specializes in crypto investments to guide your strategy.

[@burnsie3326]

I was in a similar situation a few years ago; I took profits, but it went higher. Realizing I wasn't good at timing the market, I started working with an advisor, which helped me build a $1.6m stock and crypto portfolio. It all comes down to insight and patience. Remember, time in the market is better than timing the market.

[@JacksonLeoWtah-b2i]

This is very insightful. Hope you don't mind me asking you to recommend your advisor?

[@burnsie3326]

Evelyn Infurna is the CFA I use and im just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.

[@burnsie3326]

SHE’S MOSTLY ON TELEGRAMS APPS WITH THE BELOW NAME.

[@agnieszkaradlinski1140]

Scammers all the contributing ideas

[@sircorn4248]

Thanks for gaslighting. Claiming that all those increases are to help Canadians is insane. Did ChatGPT assemble your pitch? Do you know that small businesses don’t sell shares as no sane person would be willing to buy possible liabilities along with them.

[@AvalonAccounting]

We totally agree that CEI and LCGE will be very limited and wish it would be easier for small business owners to claim these. We tried to stick to the facts in this video and keep policy opinions and political stances out of them. As accountants, we are watching from the sidelines and hopefully helping people navigate the rules, even if we disagree with them.