As we approach the heart of tax season, we wanted to share some information to help simplify the process and draw your attention to some important changes for the 2024 tax year. Please note that these are a summary of some of the changes that may or may not apply to your situation. We would welcome the opportunity to complete a Wealth Plan with your family so that we can provide additional specific advice.

As always, please consult with your tax professional prior to making any elections.

During the last tax-filing season, the Canada Revenue Agency (CRA) received more than 33 million income tax and benefit returns, and almost 93% were filed online. There were more than 19 million refunds issued, with an average refund of $2,294. The CRA also delivered more than $52 billion in benefit payments, all because individuals filed their income tax and benefit returns.

Important dates:

  • February 24, 2025 – This is the first day you can start filing your 2024 tax return online. If you file on paper, you should receive your income tax package in the mail by this date.
  • April 30, 2025 – This is the deadline for most Canadians to file a tax return. By filing your tax return on time, you’ll avoid delays to any refund, benefit, or credit payments you may be entitled to. If you owe money to the CRA, this is also the payment deadline. You’ll avoid late-filing penalties and interest by filing and paying on time.
  • June 15, 2025 – If you or your spouse or common-law partner are self-employed, this is the deadline to file your tax returns. Since this date falls on a Sunday, CRA will consider your income tax and benefit return filed on time if they receive it on or before June 16, 2025. If you owe money, you will still need to pay by April 30, 2025, to avoid paying interest

2024 Tax Rates: You can find your 2024 tax rate by clicking here and navigating to the bottom of the page.

Below you will find a few of the key changes for 2024. For a full list of changes and additional information please visit the below links.

What’s New for 2025 tax-filling season – Investmentexecutive.com

What you need to know for 2025 tax-filling season – Canada.ca

  • Capital gains. Finance deferred the proposed increase to the capital gains inclusion rate to 2026. The CRA is providing additional time for taxpayers reporting capital gains to meet their tax filing obligations. It will grant relief of late-filing penalties and interest until June 2, 2025, for individual filers and until May 1, 2025, for trust filers.
  • Alternative minimum tax (AMT). Introduced for 2024 and later tax years, AMT changes include an increase to the minimum tax rate, to 20.5% from 15%, and an increased basic exemption threshold, to the start of the fourth federal tax bracket ($173,205 in 2024) from $40,000. There are also changes to the calculation of adjusted taxable income for AMT purposes, the special foreign tax credit, and the minimum tax carryover. The changes also limit the value of most non-refundable tax credits. See Line 41700. 
  • Canada carbon rebate (not available in B.C., the Northwest Territories, Nunavut, Quebec or the Yukon). This tax-free rebate helps eligible individuals and families offset the cost of the federal pollution pricing and consists of a basic amount and a supplement for small and rural communities. Under proposed changes, eligibility for the supplement will be expanded to include those who reside within a census rural area or small population centre (less than 30,000 people) in a census metropolitan area, as designated by Statistics Canada. Eligibility for the supplement will be based on the geographical designations from the most recent census published before the tax year.
  • Canada Pension Plan and Quebec Pension Plan enhancement. As of January 2024, a second additional contribution of 4% is required by the employee and employer on pensionable earnings between the year’s maximum pensionable earnings ($68,500 in 2024) and the year’s additional maximum pensionable earnings ($73,200 in 2024). This amount is reported in box 16A (CPP) or box 17A (QPP) of T4 slips. For self-employment income and other earnings, the rate for second additional contributions is 8%.
  • Quebec Pension Plan. As of Jan. 1, 2024, Quebecers aged 65 and over who are still working and already receiving QPP can choose to stop contributing to the plan, as workers in the rest of Canada already can under CPP. In addition, the requirement to contribute to QPP for workers aged 72 and older ends as of the year they turn 73. All wages paid and earnings received as of Jan. 1 of the year a worker turns 73 are no longer subject to QPP contributions.
  • Charitable donations. The deadline for making donations for the 2024 tax year was extended to Feb. 28, 2025, given the disruption of the Canada Post strike. The draft legislation confirms that the donation can be in cash or “transferred by way of cheque, credit card, money order or electronic payment.”
  • Home Buyers’ Plan (HBP) withdrawals. The HBP withdrawal limit increased to $60,000 from $35,000 for withdrawals made after April 16, 2024. Temporary repayment relief was also introduced to defer the start of the 15-year repayment period by an additional three years (up from two years previously) for participants making a first withdrawal between Jan. 1, 2022, and Dec. 31, 2025. Accordingly, the 15-year repayment period will start in the fifth year following the year that the first withdrawal was made. 
  • Mineral exploration tax credit. Eligibility has been extended to flow-through share agreements entered into before April 2025 for expenses incurred (or deemed incurred) before 2026. See Line 41200.
  • Reporting rules for digital platform operators. Beginning with the 2024 calendar year, reporting platform operators must collect and report information on sellers using their platform to sell goods or provide certain services, such as the rental of real or immovable property.
  • Short-term rentals. If you rent a residential property for short periods (less than 90 consecutive days), you must comply with provincial or municipal regulations and licensing, or else the CRA will deny your expense deductions. Transitional relief is in place for the 2024 tax year, so that if a taxpayer was compliant by Dec. 31, 2024, the taxpayer is deemed compliant for all of 2024.
  • Volunteer firefighters’ amount and search and rescue volunteers’ amount. These amounts increased to $6,000 from $3,000. Eligible individuals who performed at least 200 hours of combined eligible volunteer service during the year can claim one of these amounts.
  • Canada child benefit (CCB). Beginning in 2025, eligibility for the CCB will be extended for six months after a child’s death if the person claiming the CCB for that child is otherwise eligible. The person receiving the CCB will still be required to notify the CRA of the child’s death before the end of the month following the death. The extended period will also apply to the child disability benefit.