What's new for 2025

Final CPP/QPP enhancement (2019 to 2025) - The Canada Pension Plan enhancement was introduced through a 7-year gradual phase-in starting on January 1, 2019. Starting 2025, the YAMPE will be approximately 14% above the YMPE, increasing from approximately 7% in 2024.

• Alberta - has announced the introduction of indexation and an increase in personal income tax thresholds by 2% for 2025. Bill 32 was tabled on November 4, 2024.

• Prince Edward Island - has announced an increase to the basic personal amount from 13,500 to 14,250 starting January 2025. In addition, that personal income tax thresholds will be raised and the tax rates will be reduced on the first 4 income thresholds. Bill 66 was introduced on November 5, 2024.

• Manitoba - has passed changes to phase out the basic personal tax credit amount for individuals with a net income range between 200,000 and 400,000, effective January 2025. Impacted employees who want to claim less tax credits at-source can complete a TD1MB-WS and provide it to their employer.

• Nova Scotia - has passed changes for January 2025 that will begin to index personal income tax brackets and the following tax credits; the basic personal amount, spousal amount, dependant amount, infirm dependant amount and age amount. Employees who have completed a TD1-NS with a non-basic claim amount should review the increased entitlements and consider submitting an update.

• Quebec’s Health Services Fund (QHSF) Threshold - The upper total payroll threshold for the Health Services Fund (beyond which the rate is 4.26%) is increased to 7.8M (from 7.5M in 2024) based on indexation.