Tick, tick, tick. This year’s tax deadline is coming quickly.
Recent changes enacted by the federal government could help many Canadians pay less or receive a better refund from Ottawa.
But the pressure of digging up all of your receipts and documents and filling out forms could also mean missing out on a few opportunities to get a better refund.
This is especially the case if you’re filing at the last minute before the April 30 deadline.
Here’s what tax experts who spoke with CBC News say you should keep in mind as you’re filling out your return.
Why everyone’s taxed a little less this year
Starting with the 2025 tax year, the federal government has reduced the lowest marginal personal tax rate from 15 per cent to 14.5 per cent for the first $57,375 of taxable income.
A 0.5 per cent reduction may not sound like a lot, but it’s not chump change either — especially for low and middle-income earners.
It’s roughly a $300 tax savings, said Sébastien Desmarais, vice-president, tax and estate planner and business succession adviser at TD Wealth in Ottawa.
If you’re filing your taxes with a partner, he said, it will work out to about $600 combined.
And the savings can be even greater if you’re in a province that has also reduced its lowest marginal tax rate, said Sharon Numerow, owner and operator of Calgary’s Choice Tax Services.
In Alberta, for example, the lowest tax rate fell from 10 to eight per cent, she said, resulting in a 2.5 per cent reduction overall.
But Numerow said the break on your tax bill doesn’t come without a cost.
“Some of the credits people claim are now also worth less,” she said, even though the change still works out to “most people’s advantage.”
Conservative Leader Pierre Poilievre called for a federal tax holiday on fuel, eliminating the Fuel Excise Tax, the Clean Fuel Standard and the Goods and Services Tax in a move the party says would cost the government $5.25 billion this year. ‘Every penny that we can get reduced in taxes is a penny in the pockets of the people who earned it,’ Poilievre said.
Give and you shall receive — tax credits
Canadians are “generous by nature” and donate to good causes, Desmarais said, but many of them don’t always remember to include all of their charitable tax receipts in their return.
“That is money that you can access just by reducing your taxes,” he said.
If you do miss out on reductions by not including all of your donation receipts, he said, you can carry them over to a future year, within five years, or file a request to amend your tax return in order to get a potential refund.
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There is another measure that Desmarais said is intended for people who give back to their communities: the personal support workers (PSW) tax credit.
It was introduced in the last federal budget to “recognize the vital role” support workers play in their communities, providing personal care and companionship for seniors, persons with disabilities or those needing convalescent care.
The measure allows PSWs to claim five per cent of their eligible earnings for a refundable credit of up to $1,100. But it’s not available for people working in British Columbia, Newfoundland and Labrador or the Northwest Territories, as those jurisdictions have agreements with Ottawa to raise PSW wages.
Desmarais said it would be unfortunate for people caring for others to miss out on such a benefit because they hadn’t been informed.
According to the Canada Revenue Agency, a growing number of Quebecers are seeking help from free tax clinics to file their federal and provincial taxes. The service is available to certain low-income households.
Think of the children
There are a lot of “overlooked” reductions when it comes to claiming expenses related to child care, Numerow said.
“Most people don’t realize that it’s not just daycare, you know, preschool, things like that,” she said.
Parents can also claim the costs of noon supervision (if you’re required to pay for that), as well as other school-related charges — and even summer camps.
Another thing people may not know, Desmarais said, is that if a child in your household is attending a post-secondary institution, their tuition tax credit can be transferred.
“If the student doesn’t have much annual income, it might be beneficial to grant it to the parents,” he said.
With tax season underway, the CBC’s Tristan Mottershead dives into tips and tricks for first-time filing.
Just do it
The Canada Revenue Agency urges people to file by the April 30 deadline, even if you can’t pay what you owe at that time.
Failing to do so could get you a five per cent penalty of your balance owing, as well as one per cent of that balance for each full month you’re late (up to 12 months) — and it’s even higher if you have repeatedly filed late.
At the same time, Numerow said, people should resist the urge not to file on time if you’re expecting a refund.
She said you may miss out on credits you’re eligible for that could put more money in your pocket.
Plus, she said, the government doesn’t give you any interest on what it owes you, and you’d be better off investing the money you get back.
“Why do you want the government sitting with your money?” she said.
Already thinking about next year?
Even though this year’s deadline is still coming up, there are a couple of things to look forward to for the year ahead.
The federal government will lower the marginal tax rate by a further 0.5 per cent, down to 14 per cent, for up to the first $58,523 of your 2026 earnings, working out to about $420 in tax savings per person or $840 per couple.
Canada’s lowest earners will also benefit from automatic tax filing. Many low-income Canadians — notably those on government assistance — seldom file their taxes because they don’t expect to owe the federal government anything.
Desmarais said automatic filing is a way to ensure that thousands of people receive the credits they’re eligible for — such as the GST/HST credit, Canada Child Benefit and Canada Disability Benefit — but may not receive if they don’t file a return.
Prime Minister Mark Carney said the Liberals will push ahead with a boost to the goods and services tax (GST) rebate, bumping it up by 25 per cent until 2031. He also proposed a one-time top-up of 50 per cent in June. It’s expected to affect 12 million low-income Canadians.
