The Canada Revenue Agency recently revealed the inflation rate or indexation factor (2.7%) that will be used to determine key personal income tax and benefit numbers for 2025.
Because inflation slowed down in 2024, we see minimal increases in many benefit amounts and limits.
Here are the updated RRSP, TFSA, CCB, CPP amounts and other numbers to get you started for your savings, retirement, and tax return filing efforts in 2025.
2025 TFSA Contribution Limit
The TFSA numbers kept steady at $6,000 for four years between 2019 and 2022. This lack of change was due to how the TFSA limit is calculated – i.e. annually indexed to inflation and rounded off to the nearest $500.
The TFSA contribution limit increased to $7,000 in 2024, and for 2025, it remains $7,000. If you’ve never contributed to the TFSA and have been eligible since 2009, your total contribution room increases to $102,000.
Related:
- How To Invest Your TFSA
- Best TFSA Savings Account Rates
- Can You Have Multiple TFSAs?
- TFSA vs Savings Account
2025 RRSP Limit
The maximum RRSP contribution allowable in 2025 is the lower of $32,490 or 18% of your earned income in 2024. If you have a workplace pension, a pension adjustment may further reduce this amount.
The limit was a maximum of $31,560 for 2024.
Related:
- Save on Taxes by Maximizing your RRSP Contribution
- Best RRSP Investments
- Best RRSP Savings Account Rates
- Do You Pay Taxes on RRSPs After Age 65?
2025 Canada Child Benefits
For the July 2024 to June 2025 payment period, the maximum CCB for children under 6 increases to $7,787, and it is $6,570 for those between 6 and 17.
The total amount you will receive will depend on the number of children and your family’s net income. A phase-out of benefits starts when your family’s net income exceeds $36,502.
Child Disability Amount: The child disability benefit for a child under 18 in 2025 is $3,322.
Related:
- How to Increase Your Canada Child Benefits
- Canada Child Benefit Payment Dates
- How To Invest Your RESP
2025 Age Amount
The maximum age amount that can be claimed for 2025 is $9,028. Your net income has to be $45,522 or less to claim the full age amount deduction.
2025 Federal Tax Brackets
Federal tax brackets for 2025 are as follows:
- Up to $57,375: 15%
- $57,375.01 to $114,750: 20.50%
- $114,750.01 to $177,882: 26%
- $177,882.01 to $253,414: 29%
- $253,414.01 and over: 33%
Related:
2025 Basic Personal Amount
The basic personal amount for 2025 is $16,129 if your income is $177,882 or less.
The increase in the basic personal amount is phased out gradually until it reaches $14,538 for incomes of $253,414 and over.
2025 Employment Insurance (EI) Rate and Maximum
The maximum annual insurable earning for 2025 is $65,700 ($63,200 for 2024), with EI premiums payable at a rate of 1.64%.
This means that the maximum annual employee premium for 2025 is $1,077.48. The maximum annual employer premium is $1,508.47 for 2025.
Related: How To Apply For EI and EI Sickness Benefits.
2025 CPP Contribution and Payout Amounts
CPP contributions are paid by you and your employer every year on income earned up to a certain amount, referred to as the Maximum Contributory Earnings (MCE).
The maximum contributory earnings for the year are calculated by deducting the basic exemption amount ($3,500) from the maximum pensionable amount ($71,300) for the year.
For 2025, the MCE is $67,800, up from $65,000 in 2024. Therefore, the maximum employee contribution to CPP for 2025 is $4,034.10 (at a 5.95% contribution rate).
The maximum CPP contribution in 2025 for self-employed individuals is $8,068.20.
The maximum monthly CPP paid out to seniors in 2025 is $1,400.08. However, the average monthly pension is much lower.
Related:
- Guide To Retirement Income in Canada
- What Happens To CPP When You Are Abroad?
- CPP Payment Dates
- Reasons To Collect CPP Early
2025 OAS Maximum and Clawback
For the first quarter of 2025 (January to March), the maximum monthly OAS benefit at 65 years is $727.67, and $800.44 for those aged 75 and over.
OAS clawback starts when your net income is $90,997, and you will receive no OAS if your income exceeds $148,451 (age 65 to 74) or $154,196 (age 75 and over). The OAS amount is adjusted for inflation every three months.
Also indexed to inflation are the GIS and Allowance. For the January to March period of 2025, the following amounts apply:
- Maximum GIS amount for a single individual: $1,086.88
- Maximum GIS amount to a senior who has a spouse also receiving OAS: $654.23
- Maximum monthly Allowance benefit: $1,381.90
- Maximum monthly Allowance for the Survivor benefit: $1,647.34
Related:
Enoch, lots of useful information. Thank you.
In answer to your question “Are there numbers you would like us to include?”, I have two suggestions: 1) The percentage increase in CPP before you start receiving CPP and no more contributions are being made e.g. early retirement, and 2) the percentage increase when receiving CPP.
Pre-receipt of CPP increase is 3.27% [five-year YMPE average], in Excel for 2022:
=((55900-55300)/55300+(57400-55900)/55900+(58700-57400)/57400+(61600-58700)/58700+(64900-61600)/61600)/5
In-receipt of CPP increase is 2.7% [(Average CPI Nov 2020-Oct 2021 / Average 2019-Oct 2020)-1], in Excel for 2022:
=ROUND((137.7+137.4+138.2+138.9+139.6+140.3+141+141.4+142.3+142.6+142.9+143.9)/(136.4+136.4+136.8+137.4+136.6+135.7+136.1+137.2+137.2+137+136.9+137.5),3)-1
Although I can start receiving CPP in December, it could be worth delaying a month to pickup the higher pre-receipt of CPP increase, depending on what the numbers look like at the time.
I’m not an expert, so I cannot guarantee that the above is 100% correct, for example, rounding to the correct number of decimal places.
@Bob: Thanks for your contribution.
Good stuff
Happy New Year, Steve! Agreed, our inflation numbers definitely feel higher than 1.5% as well. LOL. Thanks for your kind words – I’m glad you enjoyed the retirement guide.