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1. RSP maximum contribution limit is $31,560 for tax year 2024 and $32,490 for tax year 2025. The RSP contribution deadline is March 3^rd 2025 to deduct contributions against income earned in 2024.

2. Tax Free Savings Account (TFSA) annual contribution limit remains at $7,000 bringing the cumulative TFSA limit to $102,000 for someone who has never contributed to a TFSA and has been eligible since 2009.

3. First Home Savings Accounts (FHSA) annual contribution limit remains at $8,000 with a lifetime limit of $40,000. Contributions are tax deductible in the current year or can be carried forward to future tax years. Withdrawals are tax free when used to purchase a qualifying home.

4. Old Age Security repayment threshold has increased to $93,454 up from $90,997 in 202 This means if your net worldwide income is less than $93,454 in 2025, you will not have any OAS claw back.

5. Canada Pension Plan (CPP) maximum pensionable earnings will increase to $71,300 and the newly introduced CPP2 is set at $81,200. CPP contribution rates for employees and employers will remain at 95% while the CPP2 contribution rate will be 4%. The basic earnings exemption amount stays the same at $3,500.

6. Tax filing deadline is April 30^th, 2025, for personal tax returns while self employed individuals have until June 16^th, 2025 to file. However, any income tax due must be paid by April 30^th or a 8% interest rate penalty will be charged by CRA.

7. Basic Personal Amount (BPA) is now $16,129 for taxpayers with net income of $177,882 or less and is gradually reduced to $14,538 when net income reaches $253,414 or more.

8. Federal tax brackets will be adjusted higher by 2.7%. The increase is less than the increase of 2024 and reflects easing inflation.

9. Bank of Canada Interest Rate announcements.  The current interest rate stands at 3.25%, down from 5% this time last year. Future announcement dates are January 29^th, March 12^th, April 16^th, June 4^th, July 30^th, September 17^th, October 29^th and December 10^th.

10. Increased Capital Gains Inclusion rate. Uncertainty remains around the announcement made in 2024’s Federal Budget. A Notice of Ways and Means Motion was published Sept 23, 2024, but has yet to receive Royal Assent. On January 7^th 2025, the Department of Finance announced that CRA will proceed with administering the increased capital gains inclusion rate for tax year 2024 and will provide the accounting forms required, by Jan 31^st, 2025.