Canadian Tax News & Analysis
Stay current with federal budgets, CRA announcements, and tax planning guidance from Canadian CPAs.
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2026 Federal Budget: Every Tax Change That Affects You
The 2026 federal budget introduces targeted changes to the capital gains inclusion rate, updated RRSP and TFSA limits, and new housing credits. Here is what every Canadian needs to know before filing.
2025 Federal Budget: AMT Reform, Housing Measures, and SR&ED Changes
The 2025 budget adjusts the Alternative Minimum Tax exemption threshold, introduces a new rental housing accelerator, and overhauls SR&ED eligibility for Canadian-controlled private corporations. Full breakdown inside.
2024 Federal Budget: Capital Gains Hike, AMT Reform, and Housing Measures
The 2024 federal budget proposed raising the capital gains inclusion rate from one-half to two-thirds for corporations and individuals with gains above $250,000. It also overhauled the Alternative Minimum Tax and introduced a new homebuilder credit.
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CRA Prescribed Rate Drops to 4% in Q2 2026: Spousal Loan Opportunity
The CRA announced a prescribed interest rate of 4% effective April 1, 2026 — down from 5% in Q1. A lower rate reopens the spousal loan income-splitting strategy for higher-income households.
T1 Filing Deadline 2026: April 30 Is Not a Suggestion
The deadline to file your 2025 T1 return is April 30, 2026 — and late-filing penalties start accruing on May 1. Self-employed individuals get until June 15, but any balance owing is still due April 30.
2026 Federal Budget: Every Tax Change That Affects You
The 2026 federal budget introduces targeted changes to the capital gains inclusion rate, updated RRSP and TFSA limits, and new housing credits. Here is what every Canadian needs to know before filing.
Underused Housing Tax 2026: Who Must File and New Exemptions
The UHT annual return is due April 30 for most filers. New exemptions added in 2026 cover certain co-ownership arrangements and newly constructed properties — here's how to determine if you still need to file.
Ontario 2026 Budget Highlights: Tax Credits and Rate Changes
Ontario's 2026 budget adjusts the Basic Personal Amount to $12,399, introduces a small business payroll credit, and extends the Seniors' Home Safety Tax Credit. Here are the changes that affect your provincial return.
RRSP Contribution Deadline 2026: How to Maximize Your Refund Before March 2
March 2, 2026 is the last day to contribute to your RRSP and claim the deduction on your 2025 tax return. We walk through the contribution limit calculation, carry-forward room, and spousal RRSP strategy.
2026 Automobile Deduction Limits: Class 10.1 and Leasing Caps Updated
The CRA announced updated automobile deduction limits for 2026: the Class 10.1 ceiling rises to $38,000 and the monthly lease deduction cap is now $1,050. These limits affect both employees and the self-employed.
Capital Gains Inclusion Rate in 2026: What Still Applies After the Pause
After Parliament prorogued before legislating the two-thirds inclusion rate, the CRA announced it would administer the original 50% rate for the 2025 tax year. This article explains what that means for your 2026 dispositions.
FHSA 2026: Your $8,000 Room Is Ready — Here's How to Use It
Every eligible FHSA holder accumulates another $8,000 of contribution room on January 1, 2026. If you haven't opened an account yet, unused room carries forward — but only after you open the account.
CPP and EI Rates for 2026: What Employers and Employees Need to Know
The 2026 CPP maximum pensionable earnings ceiling is $73,200, with the CPP2 upper earnings limit at $83,300. EI premiums have also been updated — here are the exact rates and what they cost each pay period.
Temporary GST/HST Holiday: What Was Exempt and What Wasn't
From December 14, 2024 to February 15, 2025, the federal government applied a zero-rate to groceries, children's clothing, restaurant meals, and select other goods. This article explains the rules and how to handle returns.
Working Remotely From Canada for a US Company: Your Tax Obligations
If you are a Canadian resident working for a US employer, you owe Canadian tax on all income regardless of where the paycheque originates. This article covers T1161 reporting, treaty relief, and the risk of US state tax exposure.
CCPC and Holdco Structures: Why Every Business Owner Should Consider This
A holding company above your operating CCPC allows you to shelter retained earnings from active business at low corporate rates, invest passively, and split income with adult family members. Here's when it makes sense.
Capital Gains Changes: The June 25 Implementation Date Explained
The proposed two-thirds capital gains inclusion rate was to apply to dispositions after June 24, 2025. While Parliament's prorogation created uncertainty, the CRA initially directed taxpayers to report gains under the new rate.
Principal Residence Exemption: When the Flip Tax Applies to You
The 12-month residential property flipping rule enacted in 2023 creates a deemed business income on any property sold within a year of purchase — overriding the principal residence exemption. Here's how to determine your exposure.
2025 Federal Budget: AMT Reform, Housing Measures, and SR&ED Changes
The 2025 budget adjusts the Alternative Minimum Tax exemption threshold, introduces a new rental housing accelerator, and overhauls SR&ED eligibility for Canadian-controlled private corporations. Full breakdown inside.
Passive Income Trap: How Investment Income Erodes Your Small Business Deduction
For every $1 of adjusted aggregate investment income above $50,000 in a CCPC, the small business deduction limit shrinks by $5. At $150,000 of passive income, the SBD disappears entirely. Here's how to plan around this.
Home Office Expenses 2025: Detailed Method vs. Flat Rate — Which Wins?
The CRA eliminated the temporary flat rate method after 2022, meaning all home office claims for 2025 require the detailed method and a completed T2200. We show you how to calculate the deduction and what CRA expects.
Bare Trust Reporting: CRA's New T3 Requirements and Who Is Affected
After waiving the T3 bare trust filing requirement for 2023, the CRA confirmed the rules apply for the 2024 tax year. Joint bank accounts, nominee ownership arrangements, and in-trust accounts for minors are all in scope.
T4 Deadline February 28: Your Payroll Year-End Checklist
Employers must file T4 slips and a T4 Summary with the CRA by February 28, 2025. Late filing penalties start at $100 and climb with the number of slips. This checklist covers every box you need to complete.
RRIF Minimum Withdrawals 2025: The New Table and What It Means
The updated RRIF minimum withdrawal schedule, which permanently reduced rates by approximately 25% compared to pre-2015 levels, applies to all RRIF holders for 2025. We show the factors for every age from 70 to 94.
2025 TFSA Limit Is $7,000 — Here's What Changed for RRSP Room Too
The TFSA annual limit remains $7,000 for 2025, bringing cumulative room to $95,000 for anyone who has never contributed. RRSP contribution limits for 2025 are based on 18% of 2024 earned income, up to a $32,490 ceiling.
T1135 Foreign Income Verification: $100K Threshold and What to Report
If the total cost of your foreign property held at any point in 2024 exceeded $100,000 CAD, you must file Form T1135 with the CRA. Failure to file carries automatic penalties of $25/day up to $2,500, plus potential gross negligence penalties.
Estate Freeze: How Business Owners Cap Their Tax Liability Today
An estate freeze fixes the value of a business owner's shares at today's value — locking in their capital gains liability now — while new growth accrues in shares held by family members or a family trust. Here's how it works.
Small Business Deduction 2024: $500K Limit, Associated Corporations, and Traps
The small business deduction reduces the federal corporate rate from 15% to 9% on the first $500,000 of active business income. But associated corporations must share the limit, and passive income can claw it back.
SR&ED Claims: What CRA Is Looking for in 2024 and How to Survive an Audit
Scientific Research and Experimental Development claims attract CRA scrutiny. Technical reviewers look for documented experiments, iterative development, and technological uncertainty. This guide shows what a defensible claim looks like.
Crypto Tax in Canada 2024: Mining, Staking, DeFi, and NFTs
The CRA treats cryptocurrency as a commodity, not currency — meaning every trade, exchange, and payment triggers a capital gain or business income event. This guide covers mining income, staking rewards, DeFi transactions, and NFT sales.
2024 Federal Budget: Capital Gains Hike, AMT Reform, and Housing Measures
The 2024 federal budget proposed raising the capital gains inclusion rate from one-half to two-thirds for corporations and individuals with gains above $250,000. It also overhauled the Alternative Minimum Tax and introduced a new homebuilder credit.
Ontario 2024 Budget: Property Tax Rebates, EV Incentives, and Benefit Changes
Ontario's 2024 budget introduced a new property tax rebate for small businesses, a provincial EV incentive stacking on top of the federal rebate, and adjustments to the Ontario Trillium Benefit thresholds.
Uber, DoorDash, Airbnb: How to File Taxes as a Gig Worker in Canada
Gig economy income is self-employment income in Canada. You must register for a GST/HST number once you exceed $30,000 in revenue, report income on Form T2125, and track eligible deductions including vehicle expenses and platform fees.
Lifelong Learning Plan and Home Buyers' Plan: 2024 Limit Increases
The 2024 budget increased the Home Buyers' Plan withdrawal limit from $35,000 to $60,000 and extended the repayment grace period. The Lifelong Learning Plan annual limit also increased to $20,000 with a lifetime cap of $40,000.
Disability Tax Credit 2024: Eligibility, Application, and Retroactive Claims
The DTC provides a federal non-refundable credit worth over $1,500, with a supplemental amount for individuals under 18. Qualifying for the DTC also unlocks the Registered Disability Savings Plan and a range of other benefits.
Payroll Remittance Frequency 2024: Are You an Accelerated Remitter?
Your payroll remittance frequency is determined by your average monthly withholdings two calendar years prior. Accelerated remitters — those withholding over $25,000 per month — must remit within three days of payroll.
FHSA: One Year In — The Mistakes New Account Holders Are Making
After the FHSA launched in April 2023, Canadians made several common errors: failing to carry forward unused room, treating it like a TFSA for non-qualifying withdrawals, and missing the first-time buyer definition. Here's how to stay on track.
Employee Profit Sharing Plans vs. Employee Benefit Plans: What's the Difference?
An EPSP allocates a share of employer profits to employees — contributions are deductible to the employer but taxable to the employee in the year received. An EBP, by contrast, allows employers to defer employee taxation. Choosing incorrectly has significant consequences.
Canada's Corporate Minimum Tax: Who It Hits and Who Escapes
Canada's 15% Corporate Minimum Tax, proposed for 2024 and based on the Pillar Two global minimum tax framework, targets large multinational corporations with global revenues exceeding €750 million. Canadian-owned SMEs are not affected.
CRA Voluntary Disclosure: How to Come Clean Before They Find You
The CRA's Voluntary Disclosures Program lets taxpayers correct errors or omissions before the CRA contacts them — reducing or eliminating penalties and in some cases interest. Here's who qualifies and how to apply.
Multigenerational Home Renovation Tax Credit: $7,500 Back for Secondary Suites
The MHRTC provides a 15% non-refundable federal tax credit on up to $50,000 of eligible renovation costs to add a secondary suite for a senior or adult with a disability. The credit can be worth up to $7,500.
FHSA Is Live: Everything You Need to Open an Account Today
The First Home Savings Account became available on April 1, 2023. This guide covers who qualifies, which institutions offer it, how to maximize the $8,000 annual deduction, and why opening it early — even if you can't contribute — matters.
2023 Federal Budget: FHSA Launches, Grocery Rebate, and Dental Care
The 2023 federal budget confirmed the First Home Savings Account launch date, delivered a one-time Grocery Rebate of up to $467, and expanded the Canadian Dental Care Plan to additional age groups.
BC 2023 Budget: Flipping Tax, Speculation Tax Updates, and Renter Benefits
British Columbia's 2023 budget introduced a provincial residential property flipping tax on properties sold within two years, increased the foreign buyers' tax to 20%, and added a new Renter's Tax Credit of $400.
Deductibility of Investment Loan Interest: The Income-Earning Test
Interest on money borrowed to earn investment income is generally deductible — but only if the investments have a reasonable expectation of producing income. CRA's interpretation of this rule has narrowed since the Ludco and Singleton cases.
Residential Property Flipping Rule: What the 12-Month Rule Actually Means
Properties sold within 12 months of purchase are subject to the residential property flipping rule — gains are treated as business income, not capital gains, and the principal residence exemption does not apply. But several life-event exemptions exist.
TFSA Limit Jumps to $6,500 in 2023 — Cumulative Room Now $88,000
The annual TFSA limit increased to $6,500 in 2023, up from $6,000 in 2019-2022. Canadians who have been eligible since the TFSA launched in 2009 and have never contributed now have $88,000 of cumulative room available.
Foreign Buyer Ban Takes Effect January 1: The Tax Implications
The Prohibition on the Purchase of Residential Property by Non-Canadians Act, which took effect January 1, 2023, bars most foreign nationals from purchasing residential property in Canada for two years. We cover the exemptions and tax treaty interactions.
CPP2 Coming in 2024: What the Second Earnings Ceiling Means for You
The CPP enhancement's second tier (CPP2) takes effect January 1, 2024. Employees and employers will make additional contributions on earnings between the Year's Maximum Pensionable Earnings ($68,500) and the new Year's Additional Maximum ($73,200).
Prescribed Rate Jumps to 3%: Spousal Loan Window Narrowing
The CRA prescribed interest rate rose to 3% in Q3 2022, up from its historic low of 1% held through most of 2020 and 2021. Spousal loans established when the rate was 1% locked in that rate — new loans are less advantageous.
Canada Carbon Rebate 2022: How Much You Get by Province
The Canada Carbon Rebate (formerly the Climate Action Incentive Payment) is paid quarterly to residents of provinces where the federal fuel charge applies. The amount varies by family size and province — here are the 2022 figures.
2022 Federal Budget: FHSA Announced, Housing Anti-Flipping, and Dental Benefit
The 2022 federal budget announced the creation of the First Home Savings Account, proposed an anti-flipping rule for residential real estate sold within 12 months, and introduced a transitional Canada Dental Benefit for low-income families.
TFSA Overcontribution: What Happens and How to Fix It
If you contribute more to your TFSA than your available room allows, the CRA will assess a 1% per month penalty on the excess amount until it is withdrawn. We explain how to check your room, fix an overcontribution, and avoid the RC243 nightmare.
New T3 Trust Reporting Rules: What Every Trustee Needs to Know
Starting with the 2023 tax year, most trusts — including bare trusts that were previously exempt — must file a T3 Return and disclose the identity of all trustees, beneficiaries, and settlors. This article explains the new Schedules 14 and 15.
Home Buyers' Plan 2022: $35,000 Limit and Repayment Rules
The Home Buyers' Plan allows first-time buyers to withdraw up to $35,000 from their RRSP tax-free to buy a qualifying home. Repayment begins two years after the withdrawal year and must be completed within 15 years.
Salary vs. Dividend in 2021: Running the Numbers for Your CCPC
The optimal salary-dividend mix for a CCPC owner depends on the marginal tax rate, province, desired RRSP contribution room, CPP contributions, and business income level. We work through four scenarios for Ontario and British Columbia.
Stock Option Changes 2021: $200K Limit for Large Employers
Starting July 1, 2021, stock option benefits from large public companies and large CCPCs are subject to a $200,000 annual cap. Benefits above this threshold are treated as ordinary employment income rather than receiving the 50% deduction.
CEWS to CRHP: The Hiring Incentive Replacing the Emergency Wage Subsidy
The Canada Recovery Hiring Program replaced the Canada Emergency Wage Subsidy for most employers from June 2021. The CRHP subsidized the incremental cost of hiring new employees or restoring laid-off workers' hours.
2021 Federal Budget: Luxury Tax, Childcare, and Business Support Winds Down
The 2021 federal budget introduced a new Luxury Tax on vehicles and aircraft over $100,000, committed $30B to a national childcare system, and signalled the gradual wind-down of COVID-19 emergency business supports.
Home Office Expenses 2020 Return: $2/Day Method and T2200 Options
For the 2020 tax year, the CRA introduced a temporary flat rate of $2 per day (up to 200 days) for home office expenses — no T2200 required. Employees who could claim more could still use the detailed method with an employer-signed T2200.
CERB, CEWS, and CRB: How COVID Benefits Are Taxed
COVID-19 emergency benefits — CERB, CRB, CRSB, and CRCB — are all taxable income included on your T4A slip. Many recipients were surprised to owe tax at filing time because no withholding was deducted at source.
First-Time Home Buyer Incentive: Shared Equity and the Repayment Rules
The First-Time Home Buyer Incentive provides 5% or 10% of the home's purchase price as a shared equity mortgage — the government takes a proportionate share of any appreciation at repayment. We explain the math and whether it makes sense.
RRSP vs. FHSA vs. Home Buyers' Plan: How They Stack Up
Before the FHSA existed, Canadians saving for a first home faced a choice between maxing RRSP and using the Home Buyers' Plan, or saving in a TFSA. Now with three tools available, we compare the tax benefits side by side.