What’s New This Tax Season in Canada? Key Updates, New Credits, CRA Rules, and Filing Changes — CPA Montreal Near You Explains

Introduction

Each tax season, the Canada Revenue Agency introduces new rules, updated credits, revised filing requirements, benefit changes, and compliance measures that affect millions of Canadian taxpayers. Whether you are an employee, self-employed professional, business owner, investor, retiree, or newcomer, staying current with CRA changes is critical. Missing a new rule can lead to denied credits, missed deductions, unexpected tax owing, or even CRA reviews. This guide outlines the most important updates for the current tax season and how they impact your return.

Why Annual Tax Updates Matter

Tax laws evolve every year. Updates affect:
personal income tax brackets
credit eligibility
new deductions
RRSP, TFSA, FHSA limits
digital filing requirements
real estate and housing rules
small business compliance
benefit entitlement such as CCB, GST credit, OAS, and GIS
CRA audits also shift focus annually — making it essential to understand new risk areas.

Updated Tax Brackets and Personal Amounts

Each year, CRA adjusts:
federal tax brackets
basic personal amount
provincial brackets and credits
These changes affect:
marginal tax rates
withholding amounts
RRSP calculations
benefit eligibility
Even minor bracket changes can impact refunds or balances owing.

New and Updated Credits

First Home Savings Account (FHSA)

Still a major change. Canadians can contribute up to $8,000 annually and deduct contributions from income, similar to an RRSP. Withdrawals for first-home purchases are tax-free like a TFSA.

Multigenerational Home Renovation Tax Credit

A refundable credit for those building secondary units for senior or disabled family members.

Canada Dental Benefit / Dental Care Plan

Phased rollout providing no-cost dental coverage for eligible Canadians. Some households must still report benefits correctly.

Climate Action Incentive Changes

Adjusted payment dates and regional variations affect eligibility and amounts.

Remote Work and Home Office Updates

CRA may update rules related to:
flat-rate home office method
detailed method eligibility
employment requirement documentation
Employers may need to issue updated T2200/T2200S forms.

Real Estate and Housing Tax Changes

Real estate remains a major CRA focus.

Anti-Flipping Rule

Profits from residential properties held less than 12 months are classified as business income, not capital gains, unless exceptions apply.

Underused Housing Tax (UHT)

Foreign owners, some Canadian entities, and corporations must file UHT returns even if no tax is owed. Penalties for late filing are severe.

New-Build Rental Housing GST Relief

GST removed on new rental builds to encourage development, with specific qualification conditions.

Crypto and Digital Assets Reporting

CRA continues expanding crypto enforcement. Updates may include:
mandatory reporting from more crypto platforms
enhanced foreign ownership disclosures
additional questions on tax returns
Investors must ensure accurate ACB tracking, wallets logs, and gain/loss calculations.

Disability and Support-Related Changes

Adjustments to:
disability tax credit eligibility
medical expense rules
caregiver amount
refundable disability support credits
Taxpayers supporting relatives should review updated qualification standards.

RRSP, TFSA, FHSA, and Pension Adjustments

CRA annually updates:
RRSP limit based on earned income
TFSA contribution limit
FHSA annual limit
pension adjustment factors
These affect contribution strategies and withdrawal planning.

Business Tax Updates

Small business owners must monitor:
updated CCPC rules
passive investment income calculations
GST/HST digital platform obligations
immediate expensing limits for capital assets
payroll remittance threshold changes
CRA is increasingly auditing payroll source deductions and GST/HST compliance.

Digital Filing and CRA Account Requirements

CRA continues strengthening:
mandatory electronic filing rules
multi-factor authentication
representative authorization requirements
secure document upload systems
Missing CRA digital mail is one of the most common causes of reassessment—taxpayers must check online accounts frequently.

Changing Audit Priorities

Each tax season, CRA publishes updated audit focus areas. Current priorities may include:
real estate (flipping, rental, assignment sales)
cryptocurrency transactions
GST/HST on e-commerce and digital platforms
employment expenses
small business bookkeeping
foreign income and T1135 reporting
Understanding these priorities reduces audit risk.

Benefit Updates: CCB, GST Credit, OAS, GIS

CRA adjusts benefit payments based on inflation and income thresholds. Taxpayers must:
update marital status
report child custody changes
file on time to avoid benefit interruption
Failure to file quickly results in delayed benefits.

Filing Deadlines and Penalties

Key deadlines remain:
April 30 – personal tax filing
June 15 – self-employed filing (balance due April 30)
February 29 – T4, T4A, RL-1 slips from employers
Late filing may result in penalties, interest, or benefit disruption.

Mackisen Strategy

At Mackisen CPA Montreal, we monitor every tax season update to ensure clients maximize deductions, comply with new CRA rules, optimize credit eligibility, and avoid reassessments. We align your tax strategy with current legislation and CRA enforcement trends.

Real Client Experience

A Montreal taxpayer avoided CRA review by updating remote-work documentation. A real estate owner navigated anti-flipping rules successfully with proper structuring. A crypto investor corrected ACB and avoided penalties. A small business passed a GST/HST audit after updating compliance under new rules.

Common Questions

Do updates apply immediately? Many do once legislation passes. Will CRA audit new credits more aggressively? Yes. Should I adjust withholding after changes? Often. Does FHSA affect RRSP? Yes strategically.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps Canadians understand and implement new tax-season changes, ensuring accuracy, compliance, and maximum benefit each year.