2025 Canadian Taxes: What’s New & How to File | CRA Updates & Expert Tips

The Canada Revenue Agency (CRA) is entering a pivotal tax season as it completes a major shift in service delivery. For the first time, the agency will not automatically mail paper tax packages to the vast majority of Canadians.

This change comes after a significant increase in online filing, with 93% of tax returns being submitted electronically in 2025. The CRA has responded by phasing out the automatic distribution of paper materials, a move intended to streamline operations and reduce costs.

Taxpayers who typically received a paper package in the mail will now need to download forms and guides from the CRA website or request them by phone. The agency continues to offer a range of online services, including NETFILE-certified tax software and My Account, which allows individuals to manage their tax information online.

The CRA has outlined four key priorities for the 2025-26 fiscal year, supported by 13 objectives and 27 commitments. While the specific details of these priorities haven’t been widely publicized, they signal a continued focus on modernization and improved service delivery.

Adjustments to income tax and benefit amounts have been made for 2025, reflecting an inflation adjustment factor of 2.7%. This represents a decrease from the 4.7% adjustment seen in the previous year, aligning with the current lower rate of inflation. These adjustments impact tax brackets, contribution limits for Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs) and various benefit amounts.

Experts are advising Islanders, and Canadians across the country, to be aware of these changes ahead of filing their 2026 returns. While specific advice varies, the common theme is proactive preparation and utilizing available online resources.

The CRA’s website, canada.ca/revenue-agency, remains the primary source of information for taxpayers. The agency also provides contact information for those who require assistance.