Taxes in Canada: Plain-Language Guides

Tax Filing Deadlines in Canada: When Your Return Is Due Most people must file and pay by April 30. For your 2026 return, that is April 30, 2027. If you or your spouse are self-employed, the filing deadline is June 15, but any balance owing is still due April 30. Tax season for 2025 returns opened February 23, 2026. Federal Income Tax Brackets 2026 and How Much Tax Comes Off Your Pay For 2026, federal tax is 14% on income up to $58,523, 20.5% up to $117,045, 26% up to $181,440, 29% up to $258,482, and 33% above that. Provincial tax is added on top. Employers work out how much to take off each pay with the CRA's Payroll Deductions Online Calculator. What Is Line 15000 on Your Tax Return? (Total Income) Line 15000 is your total income: everything you earned from all sources in the year (employment, pensions, investments, self-employment and other income) before any deductions. Deductions are then subtracted to get your net income (line 23600) and taxable income (line 26000). Why Is My Tax Refund Lower Than Expected? The most common reasons are that the CRA used part of your refund to pay a debt you owe (taxes, a benefit overpayment, or another government debt like a student loan or EI overpayment), or it changed your return, for example by disallowing a credit. Your notice of assessment explains exactly what happened. How to Change (Amend) Your Tax Return in Canada Wait for your notice of assessment, then use "Change my return" in CRA My Account or ReFILE through your tax software. Online requests take about 2 weeks; mailed Form T1-ADJ requests take about 20 weeks. You can generally change returns from the previous 10 calendar years. Disability Tax Credit (DTC): Who Qualifies and How to Apply The disability tax credit is for people with a severe and prolonged impairment in physical or mental functions, certified by a medical practitioner. Apply with Form T2201: you complete Part A (online, by phone or on paper) and a medical practitioner completes Part B. You can apply any time of year. Approved for the Disability Tax Credit? What Happens Next After approval you get a notice of determination showing which years you're eligible for. If you ticked the adjustment box on Form T2201, the CRA automatically adjusts your returns for those years. If not, you can ask for the adjustment after you receive the notice. Medical Expenses You Can Claim on Your Tax Return (Dental, Glasses, Therapy) You can claim eligible medical expenses, such as dental services, prescription eyeglasses and contact lenses, and rehabilitative therapy, paid in any 12-month period ending in the tax year. For 2025 you claim the amount above the lesser of $2,834 or 3% of your net income. Can You Claim Property Taxes on Your Tax Return? Property tax on your own home is not a federal deduction, but some provinces give credits for it. In Ontario, you claim property tax (or rent) through the Ontario Trillium Benefit by completing Form ON-BEN with your tax return. Property tax on a rental property is a rental expense. Is Rent Tax Deductible in Ontario? How to Claim the Rent Credit Rent isn't a federal tax deduction, but Ontario renters can get money back through the Ontario energy and property tax credit, part of the Ontario Trillium Benefit. Complete Form ON-BEN with your tax return and enter the rent you paid for your principal residence. Home Office Expenses for Employees: Form T2200 and How to Claim Employees can claim home office expenses if they were required to work from home more than 50% of the time for at least 4 weeks in a row (or used the space only for work and to meet clients). Your employer signs Form T2200; you complete Form T777 and claim on line 22900. Only the detailed method is allowed from 2023 on. Do You Have to Claim a TFSA on Your Tax Return? Generally no. Investment income earned in a TFSA isn't taxed, and withdrawals aren't taxable income, so they don't go on your return. The 2026 TFSA dollar limit is $7,000. Withdrawals are added back to your contribution room on January 1 of the next year. RRSP and Your Taxes: Deductions, Withdrawals and Withholding Tax RRSP contributions reduce your taxable income, up to your deduction limit shown on your notice of assessment. Withdrawals are taxable, and your bank withholds 10% (up to $5,000), 20% ($5,000 to $15,000) or 30% (over $15,000) outside Quebec. The Home Buyers' Plan and Lifelong Learning Plan let you withdraw without paying tax if you repay. Capital Gains Tax in Canada: How It Works Only half of a capital gain is taxable: one-half of the gain is added to your income and taxed at your normal rate. The proposed increase to two-thirds was cancelled. Gains on a home that was your principal residence for every year you owned it remain tax-free. How Rental Income Is Taxed in Canada (Form T776) Report rental income on Form T776 and deduct reasonable expenses you paid to earn it, such as property taxes, insurance, interest and utilities for the rented space. Repairs that restore the property are deducted in the year; improvements are claimed over several years through capital cost allowance. Is Mortgage Interest Tax Deductible in Canada? Not on the home you live in. The CRA only lets you claim interest on money borrowed to earn income: for a rental property (on Form T776), a business, or investments that can pay interest or dividends (line 22100). A mortgage on your own home isn't used to earn income. Is There an Inheritance Tax in Canada? No. Canada has no inheritance tax on what you receive. Instead, when someone dies they are treated as having sold their property just before death, and any capital gain is taxed on their final return. Property left to a surviving spouse or common-law partner can usually pass at cost, with no gain. Land Transfer Tax in Ontario and B.C.: Rates and First-Time Buyer Rebates Ontario charges land transfer tax from 0.5% to 2.5% of the price, and first-time buyers can get a refund of up to $4,000. In British Columbia, first-time buyers of existing homes can be fully exempt from property transfer tax up to $500,000, with a partial exemption up to $860,000. Taxes for Freelancers and the Self-Employed in Canada Report business income and expenses on Form T2125 (one per business). Register for GST/HST once your sales pass $30,000 over four consecutive quarters. You pay both the employee and employer share of CPP contributions. Your filing deadline is June 15, but any balance owing is due April 30. CRA Tax Slips and Forms Explained: T1, T4, T4A, T5 and More The T1 is your income tax and benefit return. Slips report income to you and the CRA: T4 for employment income, T4A for pensions and other income, T4A(P) for CPP, T4A(OAS) for Old Age Security, T4E for Employment Insurance, T5 for investment income and T3 for trust income. Copies of most slips are in CRA My Account. Canada Carbon Rebate: Why It Ended and Who Got the Last Payment The Canada Carbon Rebate for individuals has ended. The consumer fuel charge was set to zero on April 1, 2025, and the last quarterly rebate was paid in April 2025. There are no further payments, and the consumer carbon price was permanently removed from federal law in March 2026.