As 2025 rolls in, many Canadians are wondering what this year’s tax updates will mean for their wallets. The CRA (Canada Revenue Agency) has introduced a set of changes aimed at boosting fairness, protecting against fraud, and adapting to today’s digital economy.
From capital gains and TFSAs to carbon tax and new digital levies, these updates touch almost everyone—from everyday earners to online business owners.
If you’re a salaried worker, side hustler, investor, or small business operator, knowing these CRA updates is key to saving money and avoiding tax-time surprises. Let’s break it all down in plain language, with real-life scenarios and practical advice.
Snapshot
Here’s a quick summary of what’s changed in Canada’s 2025 tax system:
| Category | Details |
|---|---|
| Capital Gains Tax | No change; inclusion rate remains 50% |
| Digital Services Tax | 3% tax on big tech firms; retroactive to Jan 1, 2022 |
| Direct Deposit Updates | Must update through CRA My Account or your bank only |
| TFSA Contribution Limit | Increased to $7,000 in 2025; lifetime limit now $102,000 |
| Carbon Tax Repeal | Federal consumer tax repealed as of April 1, 2025 |
These changes are all part of the CRA’s move toward transparency, modernization, and taxpayer protection. Here’s a closer look at how each update works and what it means for you.
Gains
Capital gains tax was a hot topic in 2024, with many expecting a hike in the inclusion rate. But the federal government chose to keep it steady at 50%.
This is great news for investors, landlords, and small business owners who sell assets like stocks or secondary properties. If you make a $100,000 gain from selling shares, only $50,000 is taxed as income.
This stability makes it easier to plan ahead and encourages long-term investments. Want to test different outcomes? Try plugging numbers into the CRA’s Capital Gains Calculator online.
Digital
The new Digital Services Tax (DST) officially applies starting in 2025, but it’s retroactive to January 1, 2022. It’s a 3% levy on Canadian digital revenues of large tech companies.
It targets firms like Amazon, Google, and Meta—especially those with €750 million+ global revenue and over CAD $20 million in Canadian digital income.
While individuals aren’t directly taxed, some platforms may pass the cost to users. For instance, if you run an Etsy shop or sell via Facebook Marketplace, you might see a small bump in platform fees.
If you operate a digital business, it’s worth checking CRA’s DST guidelines or consulting a tax expert to avoid compliance issues.
Deposit
In March 2025, the CRA tightened security on direct deposit updates. You can no longer call in or use EFILE to change your banking info.
Now, updates must be done through your CRA My Account or directly with your bank.
Why this matters: It helps prevent fraud and ensures refunds, credits, and child benefits land in the right account. Forgetting to update can cause major delays, especially during tax season.
Set a reminder each year to double-check your direct deposit info so your payments aren’t held up by outdated bank details.
TFSA
For 2025, the TFSA (Tax-Free Savings Account) contribution limit has increased to $7,000. The total lifetime room for Canadians who’ve been eligible since 2009 now hits $102,000.
If you’re investing for long-term growth, this is a huge opportunity. All returns—interest, dividends, capital gains—are tax-free inside a TFSA.
Let’s say you invest your entire $102,000 in a balanced ETF portfolio earning 5% annually. In 20 years, your TFSA could grow to over $170,000—completely tax-free.
But be careful: over-contributing leads to a 1% penalty per month on the excess. You can check your exact contribution room through CRA My Account.
Carbon
One of the most surprising changes this year is the repeal of the federal carbon tax on consumers. As of April 1, 2025, gas stations and utilities no longer charge the federal carbon levy.
That means families could save between $300 and $500 a year, depending on fuel usage.
However, provinces like British Columbia and Quebec still enforce their own carbon pricing, so savings will vary by region.
Want to see if your bills are dropping? Compare your March and April utility bills and track changes. Also, check your provincial site for updates on local climate policies.
Whether you’re investing for retirement, managing a digital storefront, or just trying to keep more of your paycheque, the CRA’s 2025 updates are worth paying attention to. From enhanced security to bigger savings tools like the TFSA, small adjustments today can lead to big financial benefits tomorrow.
Stay informed, make updates early, and consider chatting with a tax pro to make sure you’re getting the most out of Canada’s new tax rules.
FAQs
What is the 2025 TFSA limit?
The TFSA limit for 2025 is $7,000.
Is the capital gains tax rate changing?
No, the rate stays at 50% inclusion.
Who pays the Digital Services Tax?
Large tech companies with big digital revenues in Canada.
Can I update direct deposit by phone?
No, only through CRA My Account or your bank.
Is the carbon tax gone in all provinces?
Only the federal tax was repealed; some provinces still apply it.
