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The Canada Revenue Agency's online service My Account enables taxpayers who register for that service to obtain information about their current and prior year income taxes and to carry out a number of tax filing and payment requirements.

The CRA recently announced that it has launched a pilot program which will enable taxpayers who are registered for My Account to live chat online with CRA representatives with respect to account-specific enquiries. To use this service, taxpayers must sign into My Account and click the chat widget in the bottom right corner of the page.

CRA representatives continue to be available to speak to taxpayers with respect to account-specific matters through the Agency's 1-800-959-8281 Individual Income Tax Enquiries line; however, there can be long wait times for that service during tax filing season. The services which are initially to be provided through the online chat pilot program, and the hours of service, are listed in the CRA's announcement of the new program, which is available on the Agency's website at CRA Online chat - Canada.ca.

The most recent release of Statistics Canada's Labour Force Survey shows that the overall rate of unemployment for the month of January 2025 stood at 6.6%, marking a 0.1% decline from the 6.7% rate recorded for December 2024.

Most of the growth in employment during the month took place in the private sector, where employment increased by 57,000. In both the public and private sectors employment growth during January was greatest, for both men and women, in the core working age group aged 25 to 54. Among the provinces, employment increased in Ontario, British Columbia, and New Brunswick, with little change recorded in the other provinces

Details of the employment picture for the month by industry, demographic group, and province can be found in the February release of the Labour Force Survey, which is available on the StatsCan website at https://www150.statcan.gc.ca/n1/daily-quotidien/250207/dq250207a-eng.htm?HPA=1&indid=3587-2&indgeo=0.

In its regularly scheduled interest rate announcement made on January 29, the Bank of Canada lowered its benchmark interest rate by one-quarter percentage point. Consequently, the Bank Rate has been reduced from 3.5% to 3.25%.

In the press release outlining the reasons for its decision (which can be found on the Bank of Canada website at https://www.bankofcanada.ca/2025/01/fad-press-release-2025-01-29/), the Bank noted that overall inflation remains close to the Bank's 2% target, and that shelter price inflation, while still elevated, is easing. Overall, the Bank expects inflation to remain around the 2% target over the next two years.

The Bank's next regularly scheduled interest rate announcement will take place on March 12, 2025.

In its 2024-25 budget, the federal government announced changes to the taxation of capital gains, with those changes scheduled to take effect as of June 25, 2024. The changes included an increase (from one-half to two-thirds) in the capital gains inclusion rate (the percentage of capital gains included in taxable income) for all corporations and for individuals realizing more than $250,000 in capital gains during a single taxation year.

Finance Canada has now announced that implementation of the changes to capital gains taxation announced in the budget has been deferred and those changes will now take effect as of January 1, 2026.

The Finance Canada announcement can be found on the federal government website at https://www.canada.ca/en/department-finance/news/2025/01/government-of-canada-announces-deferral-in-implementation-of-change-to-capital-gains-inclusion-rate.html.

The Canada Revenue Agency (CRA) has announced that its NETFILE service for the online filing of individual income tax returns for the 2024 tax year will be available beginning Monday February 24, 2025.

It is not necessary to have an access code in order to NETFILE an income tax return for 2024. However, all such returns must be prepared using tax preparation software approved by the CRA for 2024 returns. A listing of such software, together with detailed information on the Agency's NETFILE service, can be found on the CRA website at https://www.canada.ca/en/revenue-agency/services/e-services/digital-services-individuals/netfile-overview.html.

The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the prescribed interest rate for leasing for the month of February 2025 will be 4.36%.

The CRA's instructions on how to calculate the prescribed interest rate for leasing, which includes a link to the necessary bond yield information, can be found at How to calculate Prescribed Interest Rates for Leasing Rules - Canada.ca.

The Canada Revenue Agency has issued the T1 income tax return package to be used in the filing of individual income tax returns for the 2024 tax year.

The entire T1 package includes the T1 Individual Income Tax and Benefit Return as well as the schedules and worksheets for that return. The particular package to be used by an individual is based on their province or territory of residence as of the end of 2024, and packages for residents of all provinces and territories can be found on the CRA website at https://www.canada.ca/en/revenue-agency/services/forms-publications/tax-packages-years/general-income-tax-benefit-package.html.

Those who wish to receive hard copy of the return and guide by mail can order a copy online at https://apps.cra-arc.gc.ca/ebci/cjcf/fpos-scfp/pub/rdr?searchKey=2024+Package.

The latest release of Statistics Canada's Consumer Price Index (CPI) shows that there was a slight decrease in the rate of inflation for the month of December 2024. That rate stood at 1.8%, as compared to the 1.9% inflation rate recorded for the previous month. Both rates are as measured on a year-over-year basis.

The StatsCan release noted that the overall rate of inflation in all provinces during December reflected the impact of the temporary GST/HST tax exemption which began on December 14.  As well, prices in provinces where federal and provincial sales taxes are combined in a harmonized sales tax (HST) were more impacted by the tax break than those in provinces where federal and provincial sales taxes are levied separately, as provincial sales tax was not included in the tax break.

Details of the inflation picture for the month are provided in the January release of the Consumer Price Index, which is available on the StatsCan website at https://www150.statcan.gc.ca/n1/daily-quotidien/250121/dq250121a-eng.htm?HPA=1&indid=3665-1&indgeo=0.

During the 2025 tax year, the federal government will levy individual income tax using the following income brackets and tax rates.

Tax Rate          Taxable Income Brackets

15.0%               up to $57,375

20.5%               $57,376 to $114,750

26.0%               $114,751 to $177,882

29.0%               $177,883 to $253,414

33.0%               over $253,414

The federal government does not impose an individual income tax surtax or a high-income surtax.

The most recent release of Statistics Canada's Labour Force Survey shows a decline in the overall unemployment rate for the month of December. That rate dropped by 0.1%, from 6.8% to 6.7%.

Significant employment gains were recorded for the month, with employment increasing by 91,000, the majority in full-time work. As noted by StatsCan, the December figures mark the third employment gain in the past four months.

Details of the employment picture for the month, by province, economic sector, and demographic group can be found in the January release of the Labour Force Survey, which is available on the StatsCan website at https://www150.statcan.gc.ca/n1/daily-quotidien/250110/dq250110a-eng.htm?HPA=1.