Tax Deadline April 30: New Credits and Lower Tax Rates for 2025 Returns

The deadline to file your 2025 taxes is April 30, 2026.

If you owe money, you must pay by this date to avoid penalties. If you are getting a refund, filing early means you get your cash back sooner. This year, the average refund is expected to be $2,101.

For the 2025 tax year, there are important changes that might put more money in your pocket. The lowest federal tax rate has dropped, and new credits for groceries and home renovations are available.

What You Should Do

1. Gather your documents: Collect all T4 slips, receipts for donations, and medical expenses.
2. Check your eligibility: Review the list of new credits below to see if you qualify for the grocery benefit or home renovation credits.
3. File by April 30: Submit your return to the CRA before the deadline. If you cannot file on time, fill out form RC201 to request payment arrangements.
4. Use free tools: If you have a simple tax situation, use the CRA’s "Auto-fill my return" feature to speed up the process.

Who Is Affected

• All Canadian taxpayers: Everyone must file by April 30, 2026, to avoid late-filing penalties (which are 5% of your balance owed, plus 1% per month).
• Lower-income Canadians: You may be eligible for the new Canada Groceries & Essential Benefit.
• Saskatchewan residents: You can claim the re-introduced Home Renovation Tax Credit for work done after October 1, 2024.
• First-time homebuyers: There are expanded supports available this year.

Key Changes for the 2025 Tax Year

Lower Tax Rate

The federal lowest tax bracket has been reduced. For the 2025 tax year, the blended rate is now 14.5%. If you earn a lower income, this reduction could result in a slightly larger refund compared to previous years.

New Grocery Benefit

A new one-time Canada Groceries & Essential Benefit is available this spring. This benefit is equivalent to 50% of the GST credit. It is targeted at lower-income Canadians to help with the rising cost of living.

Saskatchewan Home Renovation Tax Credit

If you live in Saskatchewan and renovated your home, you can save up to $420.

• The rule: Renovations must have been done after October 1, 2024.
• The benefit: This tax credit has been re-introduced to help homeowners offset costs.

Hundreds of Other Credits

There are over 400 available tax credits and benefits. Many Canadians miss out on money because they don't claim everything they are owed. Check if you qualify for credits related to medical expenses, childcare, or accessibility.

Bottom Line

Do not wait until the last minute. File your taxes before April 30, 2026, to get your refund (averaging $2,101) and to avoid penalties. Make sure to claim the new grocery benefit and the Saskatchewan home renovation credit if you qualify.

Source: 620 CKRM