For most Canadians, it’s their least favourite time of the year. Tax season is officially underway. Last tax-filing season, the Canada Revenue Agency (CRA) received more than 33 million tax returns, 93% of which were filed online. The agency issued over 19 million refunds, for an average amount of $2,000, 79% of which were issued by direct deposit. Currently, there are more than 28 million individuals signed up for direct deposit.
What’s new for the 2025 tax year?
– New bottom-bracket tax rate: As part of its platform in the April 28, 2025, federal election, the Liberal party promised to lower the tax rate on your first $57,375 of income to 14% from 15%. After the Liberals won, the government implemented the change as of July 1, 2025. The effective tax rate for 2025 splits the difference at 14.5%. Barring further rate changes, the rate on this bottom tax bracket for the 2026 tax year will be a flat 14%.
– The Canada Revenue Agency is discontinuing its practice of proactively sending paper returns to filers who have used them in the recent past. Last year just 7% of tax filers used paper returns, and the number shrinks a bit more every year. If you want to file a paper return, you can:
– Order one from CRA’s website to be mailed to you.
– Phone CRA at 1-855-330-3305 to order one.
– Pick up a blank T1 form at a post office or other federal office.
You can find out more about filing online at CRA’s tax software page (https://www.canada.ca/en/services/taxes/income-tax/personal-income-tax/how-file/tax-software.html . Make filing digitally easier with CRA’s Auto-fill my return service https://www.canada.ca/en/services/taxes/income-tax/personal-income-tax/how-file/tax-software/complete-return/auto-fill.html. Eligible low-income filers can also make use of the SimpleFile service (https://www.canada.ca/en/services/taxes/income-tax/personal-income-tax/how-file/simplefile.html?utm_campaign=cra-arc-simplefile-declarersimplement-2024&utm_medium=vanity-url&utm_source=canada-ca_simplefile or free tax clinics offered by not-for-profit organizations.
Free income tax clinics are available across Muskoka for the 2026 tax season through the Community Volunteer Income Tax Program (CVITP). Residents with lower incomes who qualify can get help filing their taxes at these clinics. The clinics are hosted by the District of Muskoka, in partnership with the Canada Revenue Agency (CRA), local groups, and volunteers. Filing taxes annually can help residents access valuable benefits and credits, including the Ontario Child Benefit, the GST credit, and Old Age Security.
“In 2025, our volunteers processed 2,857 tax returns to support residents in accessing the government benefits they are entitled to,” said Arfona Zwiers, Commissioner of Community and Planning Services, District of Muskoka. “A special thanks to these dedicated volunteers and community partners who contribute their time and expertise to make this annual program possible.”
In-person appointments are available throughout March and April at locations across Muskoka. A waitlist for virtual appointments is also open for those preferring remote assistance.
Online: www.muskoka.on.ca/incometaxclinics
Phone: (705) 645-2412
In person: 70 Pine St. during business hours
For eligibility details, required documents, and more information, visit www.muskoka.on.ca/incometaxclinics
Free tax clinics are also available in the Almaguin Highlands for individuals with modest incomes and simple tax situations.
Key Almaguin Area Free Tax Clinics (2025/2026 Season):
Central Food Network: Offers in-person, by-appointment service. Call 705-306-0565 to register.
Burk’s Falls, Armour & Ryerson Union Public Library: Hosts a free clinic; contact the library directly to start the process.
Employment North (Almaguin): Listed in the Township of Perry for tax clinic services.
Key dates
Keep on top of these dates to avoid a late-filing penalty if you owe money (usually 5% of the balance owing, plus 1% per month if you’re late.)
Feb. 23:CRA Netfile opens. You can officially submit your 2025 return online right now.
March 2: The last day you can contribute to your RRSP for the 2025 tax year. Most employers and financial institutions must have your T4 and T5 issued by this date.
April 30: Filing deadline for most individuals and payment deadline for everyone. If you’re self-employed, any balance owing is due this date to avoid interest.
Personal information
You will need:
- Social Insurance Number (SIN) for you and all dependents.
- 2024 Notice of Assessment (NOA): For your RRSP limit and Home Buyers’ Plan (HBP) and Lifelong Learning Plan (LLP) balances.
- NETFILE Access Code: You can find this in your CRA “My Account” under the “Tax Returns” tab.
- Direct Deposit details: Make sure your banking info is correct if you’re doing direct deposit to receive your refund in two weeks.
- Security update: CRA requires a backup multi-factor authentication on your account.
Income slips
You will need:
- 2025 T4: Your employment income for the year
- T4A: Pension, OAS, CPP or self-employed commissions’
- T4E: Employment Insurance (EI) benefits
- T5/T3/T5008: Investment interest, dividends or capital gains from sold stocks in non-registered accounts (so you don’t have to worry about this for TFSA or RRSP investments)
- T4FHSA: Contributions or withdrawals from your First Home Savings Account (FHSA)
- T4RSP/T4RIF: RRSP or RRIF withdrawals
Deductions and credits
- RRSP receipts: For contributions made from March 2025 -March 2, 2026.
- Medical Expenses: Premiums, prescriptions and dental bills. (You can ask your pharmacy or dental office for an annual summary, though you may be under the amount to qualify)
- Childcare: Receipts from daycare or camps (You must have the provider’s SIN or business number)
- Tuition (T2202): A form issued from your post-secondary institution to students who paid more than $100 in eligible tuition fees for a program that lasts at least three consecutive weeks and at least 12 hours a month. Your school should have this available by now.
- Charitable and Political: Official tax receipts for any donations
- Work-from-Home: Form T2200 signed off by your employer if you claim home office expenses
- Digital News Subscription: You can get back up to $500 in costs for a qualified Canadian journalism organization.
RRSP/TFSA contribution limits
The 2025 RRSP contribution limit is the lesser of 18% of your 2024 earned income or $32,490, plus any unused carry-forward room and pension adjustments. The deadline to contribute for the 2025 tax year is March 2.
The 2025 TFSA annual contribution limit is $7,000. This allows for a maximum contribution of $102,000 for individuals who have been residents of Canada, aged 18 or older, since the TFSA was introduced in 2009. Unused room from previous years carries forward indefinitely.
