The personal income tax system is indexed at 2.85% for 2025.

Amounts indexed at that rate include:

• income thresholds;
• personal tax credit amounts;
• deduction code amounts;
• the threshold for determining the method to be used to calculate the source deduction of income tax on a gratuity or retroactive pay;
• the maximum deduction for workers;
• the maximum exemption that can be granted to an individual as an emergency services volunteer.

The taxable income thresholds have been indexed; however, the income tax rates remain unchanged for 2025. The rates are:

• 14% for taxable income up to $53,255;
• 19% for taxable income over $53,255 but not more than $106,495;
• 24% for taxable income over $106,495 but not more than $129,590;
• 25.75% for taxable income over $129,590.

The personal tax credit amounts on the Source Deductions Return (TP 1015.3-V) are indexed for 2025.

Amount for career extension 

For the 2025 taxation year, the following changes have been made in form TP-1015.3-V in respect of the amount for career extension:

• The eligibility age has been increased from 60 to 65.
• The first $7,500 of eligible work income is now excluded (up from $5,000). The exclusion amount will be indexed as of the 2026 taxation year.
• The maximum eligible work income has been increased from $11,000 to $12,500 and will be indexed as of the 2026 taxation year.
• The reduction threshold has been increased from $40,925 to $56,500 and will be indexed as of the 2026 taxation year.
• The reduction is now based on net income (line 275 of the income tax return).
• The reduction rate has been increased from 5% to 7%.
• The special rule for workers born before January 1, 1951, has been eliminated. 

For more information, see information bulletin 2024-9 (PDF – 326 KB) on the Ministère des Finances website. 

The threshold for determining the method to be used to calculate the source deduction of income tax on gratuities and retroactive pay is $18,571 for 2025.

The maximum deduction for workers is $1,420 for 2025.

The maximum exemption that can be granted to an individual as an emergency services volunteer is $1,420 for 2025.

For 2025, you must withhold income tax at a rate of 14% from the taxable portion of a disability assistance payment from an RDSP that exceeds $22,694.

The table below provides the QPP data for 2025.

The table below provides the QPIP data for 2025.

The table below shows the health services fund contribution rates for 2025, by total payroll. For this year, the total payroll threshold for eligibility for a reduction of the health services fund contribution rate is increasing from $7.5 million to $7.8 million. 

As of January 1, 2025, the rate for the contribution related to labour standards is 0.06% for all employers subject to the contribution. The portion of an employee's remuneration that exceeds $98,000 for 2025 is not subject to the contribution related to labour standards.

For more information on the contribution related to labour standards and how to calculate it, see Contribution Related to Labour Standards.

The amounts an individual can withdraw from their registered retirement savings plan (RRSP) under the HBP has increased from $35,000 to $60,000. The increased withdrawal limit applies to withdrawals made after April 16, 2024. Do not withhold income tax from amounts that total $60,000 or less that are withdrawn from an RRSP under the HBP.