Canadian Tax Guide 2025

Everything you need to know about Canadian taxes, deductions, and how to calculate your take-home pay

5.95%
CPP Contribution Rate
1.63%
EI Premium Rate
13
Provinces & Territories

Federal Tax Brackets 2025

Federal income tax is calculated using a progressive tax system with the following brackets:

Taxable IncomeTax Rate
$0 to $53,35915%
$53,359 to $106,71720.5%
$106,717 to $165,43026%
$165,430 to $235,67529%
Over $235,67533%

Canada Pension Plan (CPP)

2025 CPP Rates

  • Contribution Rate: 5.95% (shared equally between employer and employee)
  • Employee Rate: 2.975%
  • Maximum Annual Contribution: $3,754.45
  • Basic Exemption: $3,500

CPP contributions are mandatory for most working Canadians between ages 18 and 70. These contributions provide retirement, disability, and survivor benefits.

Employment Insurance (EI)

2025 EI Rates

  • Employee Rate: 1.63%
  • Employer Rate: 2.282% (1.4 times employee rate)
  • Maximum Annual Contribution: $631.40
  • Maximum Insurable Earnings: $38,700

EI provides temporary income support for unemployed workers, those on parental leave, or who are sick or caring for a family member.

Provincial Tax Variations

Each province and territory has its own tax rates and basic personal amounts. Here are some examples:

Ontario

Lowest Rate: 5.05%

Highest Rate: 13.16%

Basic Amount: $11,865

British Columbia

Lowest Rate: 5.06%

Highest Rate: 20.5%

Basic Amount: $12,243

Alberta

Flat Rate: 10%

Additional Rates: 12-15%

Basic Amount: $21,503

Quebec

Lowest Rate: 14%

Highest Rate: 25.75%

Basic Amount: $17,983

Tax Calculation Example

Example: $75,000 salary in Ontario

Gross Annual Salary:$75,000
Federal Tax (approx.):$9,938
Ontario Provincial Tax (approx.):$3,204
CPP Contribution:$2,233
EI Premium:$631
Total Deductions:$16,006
Net Take-Home Pay:$58,994

Tax Planning Tips

  • 💡RRSP Contributions: Reduce taxable income and save for retirement
  • 💡Tax-Free Savings Account (TFSA): Tax-free growth on investments
  • 💡Professional Development: Many work-related expenses are deductible
  • 💡Medical Expenses: Significant medical costs may be deductible
  • 💡Charitable Donations: Receive tax credits for charitable giving

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Important Dates 2025

Tax Filing Deadline
April 30, 2025
RRSP Deadline
March 3, 2025
TFSA Limit
$7,000
Disclaimer: This guide provides general information only. Always consult with a qualified tax professional for specific advice.