Federal Government’s annual indexation adjustment for personal income tax and benefit amounts: 2.7%.
Ontario’s lowest tax bracket (federal and provincial): $52,886
Ontario’s highest tax bracket (federal and provincial): $253,414
Basic Personal Amount: $16,129
Majority of capital gains continue to benefit from the 50% inclusion rate, a reminder that in 2024 it was announced that any capital gains over $250,000 would be subject to the higher 66.6% inclusion rate
Old age security clawback for 2025: $93,454 OAS is now fully clawed back for retirees ages 65 to 74 at 151,668 and $157,490 for folks that are aged 75 and older.
New Tax-Free Savings Account contribution amount for 2025: $7,000
Total room for an individual who has never contributed before: $102,000
Yearly maximum pensionable earnings: $71,300 Maximum RRSP contribution limit for 2024: $32,490 *You have until the end of February to complete your 2024 RRSP contribution and the maximum amount is $31,560 plus any previously accumulated room.
CRA introduced a new “enhancement” to CPP that started in 2024 called CPP 2, which increases the CPP threshold to $81,200. It is a mandatory program for those who meet the criteria.
First Home Savings Account contribution limit: $8,000 per year until reach total of $40,000
Lifetime capital gains exemption: up to $1,250,000
