What is the basic personal amount for 2025 taxes?
For the 2025 tax year, the basic personal amount—on which you do not pay federal income tax—ranges from $14,538 to $16,129, depending on your overall income.
That’s up from 2024 figures, which range from $14,256 to $15,705. Those with lower incomes have a higher basic personal tax credit.
Changes to the Canada Pension Plan in 2025
Some Canadian workers will see a little more taken off their paycheques because of a rising CPP contribution amount.
A multi-year pension revamp began in 2019 as both the Quebec Pension Plan and CPP began phasing in enhanced benefits intended to provide greater financial support for retirees. Individual contributions—and the employer’s matching portion—ticked upward as the plan was implemented.
As of 2024, there are now two additional earnings ceilings beyond the base level, with higher income workers paying an additional premium on earnings within in a second tier before maxing out.
The earning ceiling for first-tier earners will go up to $71,300 in the new year from $68,500 in 2024. The second earnings ceiling will jump to $81,200 from $73,200 in 2024.
After 2025, the program will have been fully implemented and the base, first-tier and second-tier limits will increase in line with wage growth rather than with the larger jumps seen in recent years.
Anyone who worked and contributed to CPP from 2019 onward is eligible for a higher CPP payout upon retirement for income from that period.
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