Federal Budget 2025 – Tax Commentary
November 12, 2025
On November 4, 2025, the Minister of Finance and National Revenue, the Honourable François-Philippe Champagne, presented Budget 2025 – Canada Strong, to the House of Commons.
No changes were proposed to personal or corporate tax rates. Some highlights include the following:
- Personal Measures
- Automatic tax filings for low-income Canadians to commence for the 2025 tax year.
- A 5% credit for eligible personal support workers working for eligible health care establishments.
- Business Measures
- A variety of new and extended measures for accelerated CCA on asset acquisitions.
- An anti-avoidance measure to prevent tax deferrals related to refundable dividend tax where dividends are paid within a corporate group.
- Sales and Excise Measures
- Elimination of the underused housing tax.
- Removal of the luxury tax on vessels and aircraft (but not on vehicles).
- Other Measures
- Deferral of bare trust filing requirements until the 2026 tax year.
- Deferral of expanded filing requirements for non-profit organizations until the 2027 tax year.
Previously Announced Measures
- Intention to proceed with previously announced measures, including the capital gains rollover on small business investments, making the Canada carbon rebate for small businesses tax-free and increasing the lifetime capital gains exemption limit to $1,250,000 effective in 2024.
- Confirming the cancellation of the proposed increase to the capital gains inclusion rate and the Canadian entrepreneurs’ incentive.
