Your 2025 Tax Season Cheat Sheet
Plenty of people file their taxes at the stroke of midnight on April 29, but you don’t have to. And if you do, well, we’ve got you covered.
This quick guide will help answer the most commonly asked tax questions out there in bite-size summaries. Still not satisfied? Just check out the links.
How much will I owe the CRA this year?
Everyone’s tax bill is unique. That said, there are three really important factors you can use to come up with a rough estimate.
Your tax rate
The more you earn, the more tax you pay on every dollar. Simple enough.
Your federal tax rate
Here’s the basic marginal tax rate for all Canadians.
Your provincial tax rate
Your province or territory has its own marginal tax rate. Quebec’s are très élevé, Alberta’s aren’t.
What forms do I need to file my taxes?
That really depends on whatever sources of income are on your tax form this year. We’ll spare you a Google search and give you the rundown of the forms you’re most likely to need.
T1
A summary of all the tax you may owe to the CRA. It’s basically the tax form of tax forms.
T4
The workhorse of tax forms. Anyone with a day job uses this form to record their annual pay.
T5
Did you earn money from stocks or a non-registered investment account? It goes in a T5.
T2125
Are you working a side hustle, running your own business, or on commission? Use the T2125.
What are some (legal) ways to reduce my taxes?
Contribute to your RRSP
Any money you contribute to a Registered Retirement Savings Account is out of the CRA’s reach until you take the money out. This means any money you chip in after paying your taxes is a deduction from your future taxes.
Income splitting
If you’re married or common-law and earn a lot more than your partner, you can transfer some of your income so both of you end up with similar income levels (and cut your tax bill in the process). This is mostly for retired folks.
Selling a personal residence
If you decide to sell a home you’ve listed as your principal residence, you can do so without paying a cent in capital gains taxes, even if your home value rose by a lot since you bought it.
What do I need to do if I’ve never filed taxes?
This handy tax season checklist is for anybody who just turned 18 and needs to fill out a CRA return for the first time, or for someone new to Canada, or someone turning over a new leaf after fighting the establishment as long as they could. Filing your taxes can seem really daunting the first time you do it, but it doesn’t have to be. If you’ve got a regular job and don’t have a numbered Cayman account somewhere, this checklist will walk you through the basics.
I’m self-employed. What’s different?
First, you get an extension until June. Hooray! Unfortunately, you may need to pay personal taxes and GST/HST. You also pay into CPP and EI as though you are both a worker and employer (which you are), which means a higher bill. But you can also do some nifty perks like writing business expenses off your taxes.
Who needs an accountant?
Wealthsimple Tax helps you get the most out of your return, guaranteed. Oh, and did we mention you can use it for free?