As February comes to a close, Canadians are turning their attention to the 2026 tax season. Monday, February 23, marks the official start of filing income taxes and benefit returns for the 2025 tax year. Here’s a comprehensive guide to help you navigate important changes, deadlines, and credits this year.
What’s New This Tax Season
CRA Encourages Online Filing and Digital Tools
The Canada Revenue Agency (CRA) is urging taxpayers to use online services to reduce wait times. Last year, the CRA received more than 32 million calls, with daily peaks reaching nearly 300,000. To improve service this year, Canadians can access CRA’s online tools and a new 24/7 chatbot named GenAI. The chatbot, tested since March 2025, can answer questions and provide guidance on CRA programs and services. However, some concerns remain, as Auditor General Karen Hogan previously highlighted issues with the chatbot providing incorrect responses.
Paper Tax Packages Will Not Be Mailed Automatically
The CRA will not be mailing income tax packages proactively. Canadians wishing to file on paper must download and print the necessary forms themselves. This change is part of a broader shift toward digital services.
Key Changes on the Income Tax and Benefit Return
Several updates impact individual taxpayers this year:
- Lowest Marginal Tax Rate: The lowest marginal individual income tax rate has dropped from 15% to 14%, effective July 1, 2025. Because this change occurred mid-year, the effective rate for 2025 is 14.5%. For 2026, the 14% rate applies to the first $58,523 of taxable income.
- New Non-Refundable Tax Credit: A new non-refundable tax credit has been introduced to maintain a 15% rate for certain credits claimed on amounts over the first income tax bracket threshold of $57,375 for 2025.
- Fuel Charge Proceeds for Farmers: For farmers, the federal fuel charge ends in April 2025. The “return of fuel charge proceeds to farmers” tax credit for 2024–2025 will be the final credit available.
- Disability Supports Deduction: The CRA has expanded the list of eligible expenses that can be claimed under this deduction.
Important Tax-Filing Dates
When to File
Income taxes and benefit returns for 2025 can be filed online starting Monday, February 23. Early filers should ensure they have all tax slips before submitting returns, as most slips are issued by the end of February. Tax slips can also be accessed through your CRA account once processed.
If slips have not arrived by the end of March, taxpayers should contact the issuer directly for a copy. Filing early is recommended to avoid delays later in the season.
Filing Deadlines
- April 30, 2026: Most individuals must file and pay by this date to avoid late-filing penalties and interest.
- June 15, 2026: Self-employed individuals, or those with a spouse or common-law partner who are self-employed, must file by this date. Any taxes owed must still be paid by April 30, 2026, to avoid interest charges.
Special Considerations
Tax-Free Savings Account (TFSA)
TFSAs allow Canadians to earn and withdraw money tax-free. However, taxes may be owed in certain cases:
- Excess contributions
- Contributions made while a non-resident
- Non-permitted or prohibited investments
- Receiving an advantage that violates TFSA rules
Registered Retirement Savings Plan (RRSP) Contributions
The deadline to contribute to an RRSP for the 2025 tax year is March 2, 2026. Note that the final day to contribute to your own RRSP is December 31 of the year you turn 71.
How These Changes Affect Take-Home Pay
Some of the CRA’s updates, such as lower marginal tax rates and changes to credits, may result in higher take-home pay for certain workers. Farmers claiming the final fuel charge credit and individuals eligible for expanded disability support deductions may also see financial benefits.
Tips for a Smooth Tax Season
- File early to avoid long wait times and penalties.
- Use CRA online tools and the GenAI chatbot to answer questions.
- Verify all tax slips are correct before filing.
- Keep track of deadlines for RRSP contributions and TFSA rules.
Filing taxes can feel complicated, but knowing the key changes and deadlines ahead of time ensures a smoother process. With careful planning, Canadians can maximize credits, avoid penalties, and make the most of the 2026 tax season.