Most Canadians could miss key benefits and deductions as tax awareness remains low, study finds
A new tax season study by IG Wealth Management shows that most Canadians are not familiar with recent federal tax changes.
According to the study, conducted in partnership with Pollara Strategic Insights, only 21 percent of Canadians are aware of most tax updates, and less than one-third (29 percent) make it a top priority to include the latest changes in their tax returns.
The changes Canadians are missing include increases to the basic personal amount and income tax brackets, higher contribution limits for the Registered Retirement Savings Plan (RRSP), Canada Pension Plan (CPP), and Quebec Pension Plan (QPP), and updated repayment thresholds for Old Age Security (OAS).
According to MoneySense, the basic personal amount for 2025 has increased to $16,129 for those earning $177,882 or less.
Federal income tax brackets have also been indexed for inflation, with the top 33 percent bracket starting at income over $253,414, as reported by CPA Pros.
Meanwhile, the proposed capital gains inclusion rate increase—from 50 percent to 66.67 percent for annual gains above $250,000—has been deferred until January 1, 2026.
Damon Murchison, president and CEO at IG Wealth Management, stated, “Federal tax changes have a direct effect on Canadians, so it's important to keep on top of them and work with a financial professional who can help create a year-round tax strategy to take full advantage of any benefits when filing.”
Despite this, the study found that only 41 percent of Canadians currently use a financial planner.
Among those who do, 85 percent report that their planner explains the tax implications of financial decisions and has helped them be more “tax smart.”
Additionally, 78 percent of these individuals consider the latest tax changes when filing.
“A financial planner helps to ensure your money is working for you efficiently,” said Murchison. “Canadians should seek out the support of a professional who can not only help with tax strategy, but also incorporate it as part of an integrated financial plan that addresses all dimensions of your life.”
Only one-fifth of respondents said they feel very knowledgeable about the tax implications of their investments.
| The study surveyed 1,580 Canadian adults online from March 18 to 21. The results are considered accurate to within ±2.5 percent, 19 times out of 20. Data were weighted by gender, age, and region based on the latest census to reflect Canada’s overall population. |
