A new year means higher taxes for some Canadians.
The Canadian Taxpayers Federation annual New Year’s report highlights increases to mandatory Canada Pension Plan and Employment Insurance contributions in 2025.
While those at lower incomes will get some tax relief, Canadians making more than $64,000 a year will pay higher income taxes in 2025.
“Tax hikes will give Canadians a hangover in the new year,” said Franco Terrazzano, CTF Federal Director.
“In 2025, the Trudeau government will yet again take more money out of Canadians’ pockets with payroll tax hikes and will make life more expensive by raising carbon taxes and alcohol taxes.”
A Canadian making $80,000 should be expected to pay an additional $355 next year to the federal government. Those making $100,000 or more will pay an additional $403.
Every year, the alcohol escalator tax increases the 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 per cent on April 1, 2025, costing taxpayers $40.9 million. Taxes already account for about half the price of booze in Canada.
Provincially, B.C.’s s carbon tax is set to rise to $95 per tonne from $80 per tonne on April 1, 2025.
The carbon tax will cost 21 cents per litre of gas, 25 cents per litre of diesel and 18 cents per cubic metre of natural gas. The Taxpayers Federation says the carbon tax will cost almost $15 to fuel up the minivan and nearly $21 to fuel up the pick-up truck when it reaches $95 per tonne.
A B.C. home flipping tax will also go into effect on Jan. 1, to be levied against non-exempt people who sell homes within two years of purchase. The province has estimated that about 4,000 properties will be subject to the tax in 2025.
