Tax Filing Deadline for Individuals and Businesses in Canada

ByCheckMark

Key Tax Filing Deadlines

As tax season approaches, it’s essential for both individuals and businesses in Canada to understand their filing obligations, tax filing deadlines, and potential penalties for 2025. Whether you’re an employee, self-employed, a sole proprietor, or running a corporation, staying compliant with the Canada Revenue Agency (CRA) is key to avoiding interest charges and late-filing penalties.

1. Income Tax for Individuals

If you’re a resident of Canada, you must file a T1 Income Tax and Benefit Return each year under the Income Tax Act, which states:

“An income tax shall be paid on the taxable income for each taxation year of every person resident in Canada.”

How Individuals Pay Income Tax

Taxes may be collected in one of the following ways:

  • Deduction at Source: Your employer deducts income tax directly from your salary and remits it to the CRA.
  • Installment Payments: If your taxes aren’t fully deducted at the source, you may be required to make quarterly payments throughout the year.
  • Payment on Filing: Many individuals make a single payment when they file their tax return in April.
Key Deadlines
  • The tax filing deadline is April 30, 2025, for individuals.
  • The tax filing deadline is June 16, 2025, for the self-employed.

Note: Any balance owing must still be paid by April 30, even for self-employed individuals. Interest may apply after that date.

Advance Tax Refunds

If too much tax has been deducted at source, the CRA will issue a refund once you file your return.

2. Sole Proprietorships and Partnerships

Sole proprietors and partnerships must report business income using Form T2125, which is filed as part of the personal T1 tax return.

Filing Deadline

  • The tax filing deadline is June 15, 2025
  • The tax payment is due by April 30, 2025, to avoid interest

Penalties

  • Late filing or inaccurate information can lead to penalties.
  • To stay on top of payroll and remittances, consider using tools like Checkmark Online Payroll (Canada), which streamlines the process and helps you stay compliant.

3. Corporate Income Tax

Canadian corporations must file a T2 Corporate Income Tax Return annually, regardless of income or whether any tax is owed.

Federal Income Tax Rates

Calculation Rate (%)
Basic Federal Rate 38
Less: Provincial Abatement -10
Net Federal Rate 28
Less: General Rate Reduction -13
Final Net Federal Tax Rate 15

 

Provincial and Territorial Income Tax Rates

Each province and territory sets its own corporate income tax rate. Here are some examples:

Province/territory Income tax rate (%) (1, 2)
Alberta 8
British Columbia 12
Manitoba 12
New Brunswick 14
Newfoundland and Labrador 15
Northwest Territories 11.5
Nova Scotia 14
Nunavut 12
Ontario (3) 11.5 or 10.0
Prince Edward Island 16
Quebec 11.5
Saskatchewan (4) 12.0 or 10.0
Yukon 12.0 or 2.5

Note: Rates vary based on business type (e.g., small business vs. general corporate rate).

4. Reporting Business Losses

Sole Proprietors and Partnerships

If your business expenses exceed your income, you can report a business loss using Form T2125. The CRA allows reasonable claims, but being too aggressive with deductions may trigger an audit.

You may be able to deduct up to 50% of your loss as an Allowable Business Investment Loss (ABIL) against other income.

Corporations

Even if no taxes are owed, incorporated businesses must still file a T2 return annually.

5. CRA Online Services for Businesses

The CRA offers a secure online business account to help manage taxes and payments efficiently.

What You Can Do:

  • View account balances and payment history
  • Check installment schedules
  • Adjust previously filed tax returns

How to Register for a CRA Online Account

To create a CRA business account, have the following ready:

  • Social Insurance Number (SIN)
  • Date of birth
  • Postal code
  • Tax return information (current or previous year)

Once logged in, you can easily track and manage all your business tax activities online.

Understanding your tax obligations—whether you’re an individual, self-employed, or managing a corporation—is crucial for staying on the CRA’s good side. Keep the 2025 Tax Filing Deadline in mind, file accurately, and use digital tools or professional help to reduce the stress of tax season.