Canada Revenue Agency (CRA) announces changes to federal income tax brackets for 2025, reflecting a 2.7% inflation adjustment. The CRA also discusses a proposed capital gains tax hike, noting its previous unsuccessful attempt to pass through Parliament.
Canadians' federal income tax bracket has changed slightly this year, according to the Canada Revenue Agency (CRA). The CRA revealed the federal tax brackets for 2025, adjusted for inflation. While federal tax rates are the same, the income thresholds for each bracket have shifted. In 2025, the indexation increase will be 2.7 per cent, which is lower than the 4.7 per cent bump in 2024, according to the agency.
Less than or up to $57,375 — 15 per centBetween $177,882 and $253,414 — 29 per cent hat would increase the inclusion rate from one-half to two-thirds for any Canadian or corporation that makes over $250,000 per year in capital gains. It would only impact a small portion (0.13 per cent) of the wealthy population. The capital gains tax hike was introduced as a ways and means motion in the House of Commons last June, but the bill didn't pass due to pushback from the Conservatives.Its fate was tied to the prorogation of Parliament as 'the termination of a session.' During this period, bills that haven't passed into law 'die,' but the government can choose to revive them once Parliament is back in session. However, that doesn't guarantee a smooth passing of the capital gains tax bill. Efforts could be squandered if the Liberal government doesn't survive a There is a catch to all of this. In an email statement on Tuesday, an official from Canada's department of finance said that while these proposed changes are subject to parliamentary approval, the Canada Revenue Agency (CRA) can still administer the hike, which came into effect on June 25, 2024, because it was tabled as a ways and means motion.
Canada Revenue Agency Federal Income Tax Tax Brackets Inflation Capital Gains Tax
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