2025 Tax Newsletter

Welcome all new and returning clients, 

Due to rising costs, we will be applying a small increase on all returns this year. This increase ensures we continue to provide the very best products and services for our customers. 

In an effort to save our Trees, we will provide electronic (digital) copies of your tax returns. If you want a paper copy, please let us know. The charge is $7.00 per paper return and postage if mailing to you. 

Our office will be open 5 days a week starting February 23, 2026 to April 30, 2026. Hours are as follows: 

• Monday to Friday: 9:00 am — 6:00 pm 
• Saturday and Sunday: By appointment only



• Please note: 
• We do not take appointments on Fridays. 
• We do not take appointments on April 30th. 
• Our office is closed on all Public Holidays. 
  

If you cannot pay your balance owing by the due date, the penalty is 5% of unpaid tax, plus an additional penalty of 1% for each full month the payment is late to a maximum of 12 months. If you repeatedly file late, the penalty is 10% of unpaid tax, plus an additional penalty of 2% for each full month the payment is late, up to a maximum of 20 months. Interest is compounded daily. 

Remittances or payments to the Receiver General of Canada should be made as an electronic payment if the amount is more than $10,000. Payers may face a penalty unless they cannot reasonably remit or pay the amount electronically. 

• Income Tax Rate Reduction: The lowest federal marginal tax rate is reduced from 15% to 14% starting July 1, 2025. Due to the mid-year change, the effective rate for the full 2025 tax year is 
• 14.5%. 
• Top-Up Tax Credit: To ensure non-refundable tax credits (like tuition or age amounts) are not reduced due to the lower tax bracket, a new "top-up" credit maintains their value at 15% for amounts over the first bracket threshold ($57,375 for 2025) 
• Carbon Tax Cancellation: The federal consumer carbon tax is cancelled effective April 1, 2025. 
• First-Time Homebuyer GST Relief: The government proposed eliminating the GST on new homes up to $1 million and reducing it for homes between $1 million and $1.5 million for firsttime buyers. 
• Disability Supports Deduction: The list of eligible expenses for the disability supports deduction has been expanded. 
• Voluntary Disclosure Program (VDP): Effective October 1, 2025, the VDP for correcting tax errors now includes relief for taxpayers prompted by CRA education letters, with increased interest relief (75% for the general stream). 
• Trust Reporting Rules: For trusts, new anti-avoidance rules apply to transfers of property between trusts on or after November 4, 2025. 
• Lifetime Capital Gains Exemption (LCGE): The LCGE for 2025 is $1,250,000 for qualified small business corporation shares or farm/fishing property. 
• CPP Increase: Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) contributions have increased by 6.5% as part of ongoing enhancements.
  

• The Basic Personal Amount (BPA) for 2025 has been increased to $16,129 
• The registered retirement savings plan (RRSP) dollar limit for 2025 is $32,490. Of course, the amount you can contribute to your RRSP is limited to 18 percent of your 2024 earned income, which includes self-employment and rental income, less any pension adjustments, up to the current annual dollar limit. 
• CPP has two “earnings ceilings.” The first earnings ceiling, officially called the Year's Maximum Pensionable Earnings (YMPE), is the eligible income on which workers make CPP contributions. In 2025, the first earnings ceiling is $71,300. 
• Second earnings ceiling, the Year's Additional Maximum Pensionable Earnings (YAMPE). This is used to determine additional CPP contributions—referred to as CPP2—for workers who earn higher wages. Canadians whose earnings exceed the first earnings ceiling must make CPP2 contributions up to the second earnings ceiling. In 2025, the second ceiling is $81,200. 
• If you're self-employed, you pay both the employer and employee portions of the CPP, so consider setting aside a little extra for tax time. 
• OAS - The new thresholds for the 2025 tax year are as follows: 
• Minimum income recovery threshold: $93,454 
• Maximum recovery thresholds for ages 65-74: $152,062 
• Maximum recovery threshold for ages 75 and above: $157,923 
• If you made more than the minimum amount, you will have to pay back some or all of your OAS. If your income is above the maximum amount for your age group, you will not receive any OAS payments 
• Tax-free savings account contribution limit for 2025, the tax-free savings account (TFSA) annual contribution limit increases to $7,000 and any unused contribution room will carry forward. Contributions to a TFSA aren't tax deductible and when money is withdrawn, the accumulated contributions and income received are not taxable.
  

Stage 1 — Gather Tax Information

• Review the 2025 Personal Income Tax Checklist coming soon. Make necessary changes to personal info and return to us through your secure TaxFolder account. 
• New clients can fill out the checklist and upload to their secure TaxFolder account. 
  

Stage 2 — Submit Tax Documents 

• Send files in PDF format only .png or jpegs are not acceptable 
• Please name your files "Last name, first name — 2025 T4" or "Last name, first name — 
• 2025 BMO Investment Interest" or "Last name, first name — 2025 Tuition", etc. 
• T2202A If a student is transferring any unused tuition, please sign and date Page 2 of your tuition and education slip prior to sending your information. 
  

Ways to provide tax information and documents: 

• TaxFolder Upload (contact us for a link or to reset your password) 
• E-mail: info@sdgoldaccounting.com or sherry@sdgoldaccounting.com (not secure) 
• Drop-off: Ring the doorbell or knock on the door, we will immediately pick up the documents. 
• Mail: to 32 Cherryhill Drive, Grimsby, Ontario, L3M 3B5.
  

Stage 3 — Tax Preparation: 

• After obtaining the required tax information and documents, SD Gold will prepare your tax returns or reach out for further information.
  

Stage 4 — Review and Approve 

• Once a draft has been prepared, we will send you a copy through TaxFolder to review and approve. 
  

Stage 5 — Tax Filing

• After you review and approve your tax returns, we will send you authorization forms to sign and return. Your invoice will follow from QuickBooks. After receiving your signed E-file authorization forms (T183) and payment, we will electronically file your tax returns with the CRA. We will provide you with an electronic copy of your tax returns for download.
  

If you have any questions or concerns, please contact our office at (905) 309-1631 or by email.