2025 tax-filing guide: what’s new ahead of the April 30 deadline

Tax time is here again.

We can hear your collective sighs.

Yes, filing your return can feel no more exciting than going to the dentist (although it sometimes can be just as painful). However, several new and enhanced federal tax credits and benefits—along with a provincial update—could have a meaningful impact on your 2025 and future tax returns

We thought that would get your attention.

With affordability top of mind (and the April 30 filing deadline fast approaching), here are 5 new and enhanced tax credits and rebates to have on your radar:

1. Middle-class tax cut – NEW

The lowest federal income tax rate dropped from 15% to 14% starting July 1, 2025.

Since the change occurred mid-year, the effective federal rate for the full 2025 tax year is 14.5%. Ontario’s lowest provincial rate remains unchanged.

Federal Basic Personal Amount increases:

• 2025:$16,129
• 2026 (indexed): $16,452

For those of you moving up the pay grid, the adjustment in the federal Basic Personal Amount will result in a maximum tax savings of $420 per person and $840 per couple in 2026.

2. The Canada Groceries and Essentials Benefit – NEW (replaces the GST credit)

The federal government has revamped the former GST/HST credit into the Canada Groceries and Essentials Benefit effective July 2026.

Here’s what’s changed:

• Quarterly benefit payments will increase by 25% for the next five years
• A one-time top-up equal to 50% of the 2025/2026 GST credit will be paid by June 2026
• Single individuals could receive as much as $950
• A family of four could receive up to $1,890 for the 2026–27 benefit year (including the top-up)

Why do you need to file your return to receive this benefit?

The Canada Revenue Agency (CRA) uses your tax return to determine eligibility and calculate benefit amounts, based on your income and family size. This means you won’t need to apply separately for the Canada Groceries and Essentials Benefit (as your return acts as your de facto application).

Hence why it’s important to ensure your tax returns are up to date:

• 2024 tax return: Required to receive the one-time 50% top-up in July 2026
• 2025 tax return: Required for the increased quarterly payments of 25% over the next 5 years

Will the new Canada Groceries and Essentials Benefit impact the Ontario Sales Tax Credit?

No.

While both the CGEB (federal) and OSTC (provincial) are calculated using your tax return, they use different income-testing thresholds. So, even if your federal benefit is reduced, you may still qualify for the provincial one.

3. Ontario Fertility Treatment Tax Credit – NEW (provincial tax credit/Ontario-only)

Introduced to help Ontario families manage out-of-pocket costs of fertility treatments and surrogacy that aren’t covered by public programs or private insurance. For education members navigating family planning early in their career (and at the lower end of the pay grid), this credit can meaningfully offset costs.

Key details:

• This is a refundable credit, meaning you can receive money back even if you don’t owe any provincial income tax
• Only one spouse per couple can claim 25% of eligible expenses per year, up to a maximum amount of $20,000 (resulting in annual credit that is capped at $5,000)
• Applies to eligible expenses paid on or after January 1, 2025, and must be an Ontario resident effective December 31 of the tax year

Note: You must also claim these expenses under the Ontario Medical Expense Tax Credit (METC), as expenses must qualify under METC rules in order for the Ontario Fertility Tax Credit to be valid

4. Canada Workers Benefit (CWB)

This benefit has been updated with several key enhancements to increase both the payments amounts and the number of people who qualify.

The maximum basic amount has increased:

• From $1,590 to $1,633 for individuals
• From $2,739 to $2,813 for families

Plus, a new secondary earner exemption now allows an eligible lower-income spouse to exclude up to $14,000 from their working income—potentially helping dual-income households qualify for more support. If you have a partner/spouse working part-time or supply teaching, this particular update may be especially relevant.

5. Canada Disability Benefit (CDB) – NOW ACTIVE

The CDB is a non-taxable monthly supplement intended to bridge the gap in the federal social safety net for individuals 18 to 64. If you or a dependent qualifies for the Disability Tax Credit, this new federal benefit will enhance household support.

• Maximum amount: Eligible individuals can receive up to $200/month ($2,400 annually)
• Adjustment: The benefit is indexed to inflation and will be adjusted annually beginning July 2026

Eligibility:

• In order to qualify for payments, you (and your spouse/partner, if applicable) must have filed a 2024 tax return and your 2025 return must be filed on time to ensure your CDB continues (and is adjusted accordingly) for the next payment period in July 2026
• Also, you cannot receive the CDB unless you are first approved for the Disability Tax Credit (DTC)
• If you apply for the DTC for the 2025 tax year, you can be retroactively approved for the CDB dating back to June 2025 (up to a 24-month limit)

In addition to the above new and enhanced tax benefits and credits, there are also a few further changes to have on your radar.

Canada Carbon Rebate (CCR) – LAST CALL

The federal consumer fuel charge ended April 1, 2025. This resulted in CCR payments ending at the same time. However, you can still receive any money you are owed from previous years if you file outstanding claims/returns by October 30, 2026.

Personal Support Worker Tax Credit – COMING SOON

This new, refundable tax credit will be available to claim for the 2026 tax year (to be filed next year).

Key details:

• Federal refundable tax credit that will only be available for a 5-year period (2026 to 2030)
• Eligible Personal Support Workers (PSWs) will be able to claim 5% of their eligible earnings up to a maximum of $1,100 annually
• Applies to PSWs providing one-on-one care in regulated healthcare settings (excluding British Columbia, Newfoundland and Labrador, and the Northwest Territories)—those who are self-employed generally will not qualify

Maximize your tax credits and rebates further with the help of an educator-specific financial plan.

Whether you’re looking to pay off debt, buy your first home, start a family, or care for aging parents, strategic financial planning can get you closer to achieving your goals. Add a plan that considers factors such as your pay grid and pension income, and you’ve got an educator-specific roadmap for success.

Make the most of your tax return—no matter the size. Let’s chat.

Sources:
https://www.canada.ca/en/services/taxes/child-and-family-benefits.html
https://www.canada.ca/en/department-finance/news/2025/05/delivering-a-middle-class-tax-cut.html
https://www.canada.ca/en/revenue-agency/campaigns/every-dollar-counts.html?utm_campaign=cra-arc-benefits-credits-feb-mar-25-26&utm_source=ggl&utm_medium=sem&utm_content=ad-text_en&adv=2526-845150&utm_term=canada+workers+benefit&gclsrc=aw.ds&gad_source=1&gad_campaignid=23570464527&gbraid=0AAAAACd1gHBi7PcYRgejI72mV45IAm4yd&gclid=EAIaIQobChMIpaz4qPWAkwMVggutBh1vnQ4CEAAYASAAEgINRvD_BwE
https://www.canada.ca/en/services/benefits/disability/canada-disability-benefit.html
https://www.ontario.ca/page/ontario-fertility-treatment-tax-credit
https://www.canada.ca/en/indigenous-services-canada/news/2025/10/budget-2025-to-invest-in-personal-support-workers.html