What is the basic amount for personal tax returns in 2025?

For tax year 2025, the basic personal amount (for which you pay no federal income tax) ranges from $14,538 to $16,129, depending on your overall income.

This is higher than the 2024 figure, which ranged from $14,256 to $15,705. People with lower incomes have higher basic personal tax credits.

Changes to the Canada Pension Plan in 2025

As CPP contributions increase, some Canadian workers will see their salaries decrease.

A multi-year pension reform began in 2019 as the Quebec Pension Plan and the CPP began phased increases in benefits aimed at providing greater financial support to retirees. As the plan progresses, individual contributions and the employer’s matching portion increase.

As of 2024, there are now two additional income caps on top of the base level, with higher-earning workers paying an additional premium on the second tier before reaching the top income level.

The income cap for first-tier earners will rise from $68,500 in 2024 to $71,300.

After 2025, the scheme will be fully implemented, with base, first-level and second-level limits increasing in line with wage growth, rather than rising sharply as in recent years.

Anyone who worked and contributed to CPP starting in 2019 will be eligible for higher CPP payments when they retire for their earnings during that period.