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While those with lower incomes will receive some tax relief, Canadians earning more than $64,000 per year will pay higher income taxes in 2025.
A new year means higher taxes for some Canadians.
Canadian Taxpayers Federation Annual New Year’s Eve Party report highlights the increases in mandatory contributions to the Canada Pension Plan and Employment Insurance in 2025.
While those with lower incomes will receive some tax relief, Canadians earning more than $64,000 per year will pay higher income taxes in 2025.
“Tax increases will leave Canadians with a hangover in the new year,” said Franco Terrazzano, federal director of CTF.
“In 2025, the Trudeau government will once again take more money out of Canadians’ pockets by raising payroll taxes and making life more expensive by raising carbon taxes and alcohol taxes.”
A Canadian earning $80,000 can be expected to pay an additional $355 to the federal government next year. Those earning $100,000 or more will pay an additional $403.
Every year, the alcohol tax increases excise taxes on beer, wine and spirits with inflation, although that increase has been reduced by the feds since 2023.
Federal alcohol taxes will increase by two percent on April 1, 2025, costing taxpayers $40.9 million. Taxes already account for about half of the price of liquor in Canada.
Provincially, BC’s carbon tax will increase from $80 per tonne on April 1, 2025 to $95 per tonne.
The CO2 tax will cost 21 cents per liter of gas, 25 cents per liter of diesel and 18 cents per cubic meter of natural gas. The Taxpayers Federation says the carbon tax will cost almost $15 to fuel the minivan and almost $21 to fuel the pickup when it reaches $95 per ton.
A BC house tax also takes effect Jan. 1 and will be levied on non-exempt people who sell homes within two years of purchasing them. The province estimates that about 4,000 homes will be subject to the tax by 2025.