June, 2025 Tax Tidbits
As we cross into summer, it’s the perfect time to revisit your tax strategies. June offers a valuable checkpoint to assess deductions, review benefits, and adjust withholdings before year-end deadlines sneak up. With tax season behind and planning season ahead, a few smart moves now can yield smoother filings and bigger savings later. Let’s explore some concise tips to keep your tax game on point.
Middle-Class Tax Cuts begins July 1, 2025
- Federal tax rate on income up to $55,867 drops from 15% to 14%.
- Payroll withholdings will reflect this immediately for employees.
- Savings: Up to $800 per household depending on income.
Digital Services Tax (DST) Deadline Approaches
- The new 3% DST on revenue earned in Canada by large foreign tech companies officially kicks in.
- First payment deadline: June 30, 2025.
- May affect pricing on platforms like streaming, ads, and SaaS for Canadian users.
No Carbon Tax or Fuel Charge
- The federal carbon tax and fuel charge have been set to 0% since April 1.
- No direct federal consumer rebate is expected this quarter.
- Tip: Businesses with commercial fleets or energy intensive operations may see modest relief.
Mid-Year Review: A Smart Time to Act
With six months left in 2025, now’s a great time to:
- Top up TFSA (limit: $7,000 for 2025),
- Contribute to RESP before back-to-school costs hit,
- Check RRSP room based on latest NOA.
CRA Watch: More Pre-Assessments This Year
- CRA is expanding pre-assessment reviews on electronic returns.
- Common flags: high deductions, business losses, and moving expenses.
- Tip: Keep digital receipts. We’re here to help if you receive a CRA inquiry.
Still No Federal Budget – But it’s Coming
- The official 2025-26 federal budget is delayed until Fall 2025.
- However, targeted changes (like the tax cut) are being rolled out via special measures.
- Expect a Fall Economic Statement to preview broader fiscal strategy.
The information provided is for educational/entertainment purposes only. Actual information may vary, please consult our office for further details. Got a question? Feel free to reach us at helpdesk@assentt.com.
