Tax incentives Canadian families should take advantage of in 2025
Canadian families, especially those with kids to take care of, have a lot of expenses to juggle. Fortunately, there are several tax incentives available to help alleviate the financial stress.
Families are coming up with creative solutions to tackle the cost of living crisis in Canada, from economical ways to save on groceries to unique approaches to multigenerational housing.
However, there are much simpler ways for Canadian families to put money back into their pockets.
The Canada Revenue Agency (CRA) has a list of tax credits and benefits Canadians should know about.
“Filing your income tax and benefit return is the first step to accessing any benefit or credit payments, or deductions you may be eligible for,” reads a news release.
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Canada Child Benefit
The CCB gives parents a small but much-needed tax boost to support their children.
The new benefit year for the child tax payments began in July 2024. It increased by 4.7%, meaning the maximum benefit for children under six increased by $350, from $7,437 to $7,787. For children aged six to 17, it increased by $295, from $6,275 to $6,570.
Another increase is expected in July 2025, when the next benefit year begins. Families eligible for the benefit will receive their first payment of the year next week.
The next CCB payment is on February 20.
Learn more here.
Canada Dental Care Plan
The CDCP provides financial support to individual Canadians who need oral health care. Applications are currently open for seniors aged 65 and over, children under the age of 18, and adults with a valid federal Disability Tax Credit certificate for 2023.
Learn more here.
GST/HST Credit
The goods and services tax/harmonized sales tax (GST/HST) credit is a tax-free quarterly payment.
According to the government, this credit aims to help families with low and modest incomes offset the taxes they pay.
The government says you’re generally eligible for the payment if you’re at least 19 years old and a Canadian resident for income tax purposes a month before the Canada Revenue Agency (CRA) makes the payment and at the beginning of the month.
The first GST payment of the year was sent out on January 3.
Learn more here.
Child Disability Benefit
This is a tax-free benefit for families who care for a child under 18 who is eligible for the disability tax credit.
Learn more here.
Canada Workers Benefit
The CWB is a refundable tax credit that helps low-income individuals and families already in the workforce.
The maximum basic benefit for the CWB is $1,518 for single individuals; meanwhile, families can earn up to $2,616. The maximum disability supplement amount is $784 for individuals and families, based on adjusted net income.
The first payment for 2025 was sent out on Friday, January 10.
Learn more here.
Provincial and territorial benefits and credits
There are plenty of provincial and territorial programs that provide benefits to parents. Alberta has its child and family benefits, BC has its family benefit (available with an added bonus for six more months), Ontario has its trillium benefit, and Quebec has its family allowance.
You can see the government benefits in other provinces here.
GST Holiday
While this isn’t a benefit or credit, the two-month tax break does include essential childcare items like children’s clothing, toys, and diapers.
Learn more here.