2025 Tax Return Changes You Need to Know — Due April 2026

The tax changes affecting the 2025 Canadian personal income tax year are limited. A delayed federal budget reduced the number of new measures introduced for 2025, leaving most of the major adjustments for future years. Budgets are typically released in the late winter or spring, but because of the April 2025 federal election the government’s budget was postponed until November 2025.

Below is a concise overview of the personal tax items that matter for the 2025 filing season, along with practical notes on how they may affect taxpayers.

Cancelled: Digital news subscription

The federal 15% tax credit that applied to qualifying digital news subscriptions is no longer available for 2025. From 2020 through 2024, eligible subscribers could claim a credit on up to $500 of qualifying digital subscriptions to Canadian journalism organizations. That credit cannot be claimed for the 2025 tax year, so taxpayers should not include it on 2025 returns.

Expanded: Disability supports deduction

The disability supports deduction has been broadened to cover a wider range of expenses for people with physical or mental impairments who incur costs to attend school or maintain employment. This deduction helps reduce taxable income for eligible individuals who need specialized equipment or services to participate in education or the workplace.

Examples of eligible expenses now include assistive devices and software, ergonomic work chairs, voice recognition programs, and other items that directly support a person’s ability to work or study. Taxpayers claiming this deduction should keep detailed receipts and documentation that demonstrate how the expense relates to the disability and to attendance at work or school.

Final opportunity: Home accessibility and medical expense tax credit

Home renovations designed to improve mobility, functionality, or safety for a qualifying person aged 65 or older—or for someone eligible for the disability tax credit—may qualify for the home accessibility tax credit (HATC). For 2025, there is an important overlap: expenses that qualify for the HATC can also be claimed as medical expenses on the medical expense tax credit. This dual claimability is limited to the 2025 tax year, so eligible taxpayers should evaluate which claim provides the greater tax benefit and retain all supporting invoices and records.

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Cancelled: Underused housing

The federal underused housing tax—previously a 1% tax on certain vacant residential properties—has been eliminated for 2025 and later years. Although the tax primarily targeted non-resident owners, it created uncertainty for some Canadian owners who faced potential reporting or exemption processes. With the measure removed for 2025 onward, affected taxpayers and property owners no longer need to account for this 1% levy on their 2025 returns.

Deferred: Bare trust returns

Reporting rules for bare trusts remain deferred for the 2025 tax year. Bare trusts have been a source of confusion for both taxpayers and tax professionals, and the government has again postponed mandatory reporting for 2025. Current guidance indicates reporting obligations are expected to be introduced for 2026 and subsequent years. Trust beneficiaries and trustees should stay informed and prepare record-keeping systems now to accommodate those upcoming reporting requirements.

Provincial updates: Fertility treatment tax credits

Several provinces have introduced or expanded tax support for fertility treatments. For example, Ontario implemented a refundable provincial credit of 25% on up to $20,000 of eligible fertility expenses, which can provide up to $5,000 in refundable relief for qualifying taxpayers. Saskatchewan offers a comparable provincial credit that refunds up to 50% of eligible expenses, again up to a maximum of $20,000. These credits are provincial measures and availability, eligibility, and refund details vary by province, so taxpayers should consult provincial guidance or their tax advisor when preparing claims.

Communicating with the CRA

The Canada Revenue Agency continues to emphasize digital service delivery. The CRA’s My Account portal is positioned as the primary channel for taxpayers to access information, manage accounts, and resolve many common issues. Phone support has become less central, and taxpayers are encouraged to use digital tools where possible.

My Account now includes an AI-assisted virtual support option to answer general tax and account questions, which may be a convenient first step for simple inquiries instead of waiting on hold. For complex or sensitive matters, taxpayers should still consider contacting the CRA directly or consulting a tax professional.

Summary

Because the federal budget was delayed, the 2025 tax year features only a modest set of federal changes. Key takeaways for taxpayers: the digital news subscription credit has ended for 2025; the disability supports deduction has broader eligible expenses; the home accessibility credit and medical expense claims overlap for the final time in 2025; the underused housing tax is removed; and bare trust reporting remains deferred until at least 2026. Provincial measures, such as refundable fertility treatment credits, can offer meaningful relief and differ across jurisdictions.

Taxpayers should keep receipts, maintain clear records, and review both federal and provincial eligibility rules before filing. If you have doubts about specific claims or how these changes affect your situation, speak with a qualified tax professional or use the CRA’s digital services for guidance.

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