Monday, October 20th, 2025 | 387 Reads
We’ve put together a roundup of key 2025/2026 tax updates because as tax season approaches both individuals and small business owners in Ontario and across Canada are starting to organize their paperwork and assess what might be different this year.
By understanding what’s changed in the federal and provincial tax landscape, you can plan smarter and potentially reduce what you owe.
This article highlights the key updates and timelines that matter most and provides direct links to the official resources where you can verify each topic in more detail.
1. Key Filing Deadlines & Start Dates
The Canada Revenue Agency (CRA) opens electronic filing for 2025 returns on February 24, 2026. For most individuals, returns must be filed by April 30, 2026, with any tax owing also due that day.
Self-employed individuals and their spouses or common-law partners have until June 15, 2026, to file.
You can check these deadlines directly on the CRA’s website here.
Plan of Action: Mark these dates on your calendar and if you anticipate owing consider arranging a payment plan to avoid last-minute stress.
2. Recent Changes to Alternative Minimum Tax & Capital Gains Tax
The CRA has introduced changes to the Alternative Minimum Tax (AMT) rules for 2024 onward. These adjustments include a higher minimum tax rate and revised thresholds that may affect high earners and those with significant deductions or capital gains.
While new capital gains inclusion rates are not yet in effect, they’re being deferred to January 1, 2026 and legislation is still required, but taxpayers who realized gains before January 1, 2026 may still be subject to the 50% inclusion rate.
You can get details on the new AMT rules through the CRA’s tax tips for 2025.
If you’re planning to sell investments or property it may be worth discussing the timing with your accountant or tax advisor now.
3. Business & Incorporated-Entity Highlights
Business owners should be aware of small shifts in tax rates, thresholds, and credit eligibility.
According to KPMG’s Tax Facts guide for 2025-2026, there are new updates around federal small business deductions, provincial thresholds, and R&D incentive changes.
Federal small business deductions: The federal small business deduction rate remains at 19% for eligible active business income up to the $500,000 threshold (unchanged for 2025-2026), with combined federal-provincial rates listed. A new temporary interest relief measure for the 2025 taxation year defers corporate income tax payments and waives interest on instalments and arrears from April 2 to June 30, 2025, aiding small businesses.
Provincial thresholds: Numerous updates are outlined, such as Alberta’s new 8% personal income tax rate on the first $60,000 (effective January 1, 2025), Manitoba’s pause on indexation of tax brackets and basic personal amounts starting 2025, Nova Scotia’s increase in the small business income threshold to $700,000 and rate decrease to 1.5% (effective April 1, 2025), and Prince Edward Island’s adjustments to tax brackets, rates, and basic personal amounts (effective January 1, 2025).
R&D incentive changes: Federal proposals from the 2024 Fall Economic Update include raising the SR&ED expenditure limit for CCPCs to $4.5 million and phase-out thresholds to $15 million-$75 million (effective for taxation years beginning after December 16, 2024). Quebec introduces a new 20%/30% refundable Research, Innovation and Commercialization (CRIC) credit, replacing existing R&D credits for periods beginning after March 25, 2025.
This is a great time to revisit your corporate structure or payment strategy and to check out the summary here.
If you’re incorporated, or thinking of it, now’s the time to revisit income planning before the end-of-year rush hits.
4. Filing & Reporting Obligations
Business owners often confuse the June 15 filing date with the payment deadline. Even if you file in June, any taxes owed must be paid by April 30 to avoid penalties.
Don’t forget to issue all necessary slips (T4, T5, etc.) before the February deadlines.
The KPMG Foundation has a great PDF checklist that will help you stay ahead of these deadlines, avoid late penalties and build a better working relationship with your accountant.
5. CRA Account & Access Tools
The CRA continues to modernize how users access their accounts and have updated the DVS service.
The Document Verification Service now makes signing up for My Account and My Business Account faster and easier, without having to wait for a code by mail.
Now there’s also a live chat function available for certain account topics. Explore these tools directly at the Canada.ca website
If you haven’t logged into your CRA portal in a while, now is a good time to verify access or set up an account.
6. Ontario-Specific Considerations
Ontario’s tax rules for 2025 (filed in 2026) include small tweaks from the May 15, 2025 provincial budget. These can affect things like help with property taxes, rebates for energy savings, and grants for businesses. Many are adjusted for rising costs or aimed at boosting the economy.
Property Tax Credits and Relief
Ontario helps residents cut property tax costs through credits with no big changes for 2025 but ongoing options. The Ontario Energy and Property Tax Credit (OEPTC) gives up to $1248 a year to low or middle income folks for rent, property taxes, or energy bills. You qualify if you’re an Ontario resident over 18 (or with a family), with an income under the limits like $55,098 for singles.
A new 2025 credit called the Ontario Seniors’ Renovation Investment Tax Credit refunds 50% of costs (up to $5,000 max) for home upgrades like ramps or grab bars. It started after May 15, 2025, and runs until 2030.
Energy Rebates
Ontario boosted rebates in 2025 to make homes more energy-efficient. The Home Renovation Savings Program started January 28, 2025, and gives back up to 30% (max $10,000) on things like insulation, heat pumps, or solar panels through the Energy Efficiency Program.
The rebate links with Canada’s Greener Homes Grant for up to $10,000 on similar upgrades, but you need an energy check first. Gas and fuel taxes stay low at 9 cents per litre for gas (from July 1, 2025), saving families about $320 yearly. The OEPTC also covers some energy sales tax.
Business Grant Programs and Incentives
Ontario’s 2025 budget provides more support for businesses in manufacturing and tech jobs. The Ontario Made Manufacturing Investment Tax Credit doubled to 20% (up to $4 million) on gear or building costs after May 5, 2025, until 2030.
The Canada/Ontario job grant covers up to $10,000 per worker for training ($15,000 for small firms). Other aids include 15% grants from the Southwestern Ontario Development Fund for growth projects and low-interest loans via Protect Ontario.
Micro brewers get a 50% cut on beer taxes from August 1, 2025. R&D credits stay at 8% with no new tweaks beyond federal ones.
If you’re in Ontario talk to a tax pro about how these fit your 2025 taxes.
7. Basic Planning Tips
Start gathering documents now. Receipts, income slips, and business records should be saved and backed up digitally. If you’re planning a large financial decision like selling a property or launching a business remember timing can have tax consequences.
An early conversation with your accountant can make the difference between a big tax bill and a strategic win.
