Skip to main content

Featured

5 Things to Know Today About Your Money — May 12, 2026

  A lot is happening in the Canadian money world right now. From a new sovereign wealth fund you can actually invest in, to lower payroll costs coming your way, here are the five things every Canadian should know about their money today. 1. The Bank of Canada Is Holding Rates — For Now On April 29, 2026 , the Bank of Canada held its overnight rate at 2.25% (Bank Rate: 2.50%, deposit rate: 2.20%). Governor Tiff Macklem has flagged that the economy is growing at a moderate pace as it adjusts to U.S. tariffs, but inflation — now around 2.4% — is edging up due to higher oil prices tied to the ongoing Middle East conflict. The Bank projects 1.2% economic growth for 2026, picking up to 1.6% in 2027. What it means for you: Variable-rate mortgage and line-of-credit holders get a brief reprieve — but watch oil prices. If inflation keeps rising, a rate hike could follow. 2. Your CPP Contributions Are Getting a Cut in 2027 The 2026 Spring Economic Update proposes to reduce the base CPP con...
Post a Comment
Read more

article

Navigating Personal Finance in 2025: Key Changes to Capital Gains and Tax Brackets


As we step into 2025, several significant changes are set to impact personal finance, particularly in the areas of capital gains and tax brackets. These adjustments are designed to adapt to economic conditions and provide better financial planning opportunities for individuals.

Capital Gains Tax Adjustments

One of the most notable changes is the adjustment to capital gains tax. Starting in 2025, a higher tax rate will be applied to capital gains exceeding $250,000. This means that individuals selling assets with substantial gains may need to reconsider their timing and strategy to minimize tax liabilities. For example, spreading the sale of assets over multiple years could be a more tax-efficient approach.

Changes to Tax Brackets

Inflation adjustments are also on the horizon for tax brackets. To prevent inflation from pushing taxpayers into higher brackets, the income thresholds for each tax bracket will increase by 2.7%. For instance, the federal tax rate for earnings up to $57,375 will remain at 15%, but the brackets above this will see slight adjustments. This change aims to ensure that taxpayers are not unfairly penalized by inflation.

Basic Personal Amount

The basic personal amount, which is the portion of income not subject to federal tax, will also see an increase. For 2025, this amount ranges from $14,538 to $16,129, depending on overall income. This adjustment provides some relief, especially for those with lower incomes.

Canada Pension Plan (CPP) Contributions

For Canadian workers, there will be an increase in CPP contributions. This is part of a multi-year pension revamp aimed at enhancing benefits for retirees. The earnings ceilings for CPP contributions will also rise, with the first-tier ceiling increasing to $71,300 and the second-tier ceiling to $81,200.

These changes underscore the importance of staying informed and possibly consulting with a financial advisor to navigate the evolving financial landscape. By understanding and planning for these adjustments, individuals can better manage their finances and make informed decisions.




Comments

Post a Comment