Tax season is officially here, and that means you’ll be filing your papers soon. Whether you’ve got a complicated or a simple tax situation, there’s one thing everyone can agree on: saving on your taxes is always great.
There are tons of ways you can save more on your filing. Aside from credits to deductions you might not know about, we’re covering even more ways you can capitalize on further relief this season.
RELATED: Here’s How Much Tax You’ll Pay For 2025 In B.C. Based On Your Tax Bracket
Tax Season In Canada
Before we get into saving, there’s a couple things you should know about this year’s tax season.
Notably, the Canada Revenue Agency (CRA) is adjusting the federal tax bracket this year by a 2.7% increase. The lowest tax rate has also dropped from 15% to 14%. And since the adjustment occurred halfway through the year (July 1, 2025), your full annual income will be taxed at a rate of 14.5% to reflect this blended percentage.
Here’s what your taxable income rates look like depending on how much you make:
- 14.5%: on the portion of taxable income that is $57,375 or less, plus
- 20.5%: on the portion of taxable income over $57,375 up to $114,750, plus
- 26%: on the portion of taxable income over $114,750 up to $177,882, plus
- 29%: on the portion of taxable income over $177,882 up to $253,414, plus
- 33%: on the portion of taxable income over $253,414
Ways To Save
These tax credits and rebates are specifically helpful for those who are either homeowners or prospective home buyers. If either of those describes you, then these are all the ways you can find some extra tax relief during this season.
Home Buyers
- First-Time Home Buyer’s Tax Credit: This is a non-refundable tax credit that helps first-time home buyers with some of the costs of purchasing a qualifying home. “This credit reduces the federal income tax you may owe, but you will not get a refund for this credit if you do not have any tax payable.”
- Home Buyer’s Plan: This is a program that allows you to withdraw from your RRSPs to buy or build a qualifying home for yourself or for a specific disabled person. The current HBP withdrawal limit is $60,000.
Homeowners
- Work-from-home tax credits: Employees working from home can potentially claim certain home office expenses (work-space-in-the-home expenses, office supplies, and certain phone expenses). The deduction is claimed on your personal income tax return. These “reduce the amount of income you pay tax on, so they reduce your overall income tax liability.”
- Home Accessibility Tax Credit: This is a non-refundable tax credit that is designed to help homeowners cover thec osts of renovations that make their home more accessible and safer. “You may be eligible to claim an amount for home accessibility expenses if you incurred eligible expenses for a qualifying renovation that improves accessibility or reduces the risk of injury in an eligible dwelling.”
- Multigenerational Home Renovation Tax Credit: This is a refundable tax credit that can be claimed on your income tax and benefit return. Those that are eligible can claim this credit for certain renovation expenses to create a self-contained secondary unit for a senior or an adult who is eligible for the disability tax credit that lives with a qualifying relative.
Looking for more on everything financial and tax in B.C. and Canada? Check out our Finance section to stay up-to-date with what’s going on.
