Albertans can start filing their 2024 tax returns online as of Monday, Feb. 24, with the Canada Revenue Agency encouraging taxpayers to file early and sign up for direct deposit to speed up refunds.
For those expecting a benefit payment, filing on time is key. Last year, eligible Alberta residents received an average of $7,570 in Canada Child Benefit payments, $470 in GST/HST credits and $990 through the Canada Carbon Rebate. More than 101,000 Albertans also accessed free tax clinics for assistance.
The deadline for most individuals to file and pay any taxes owed is April 30, 2025. Self-employed filers have until June 16, 2025, though any balance owing must still be paid by April 30 to avoid interest charges.
New tax rules and benefits
This year brings several changes that could impact taxpayers. The Home Buyers’ Plan withdrawal limit has increased from $35,000 to $60,000, allowing first-time homebuyers to access more of their RRSP savings for a down payment. Those who withdrew funds between Jan. 1, 2022, and Dec. 31, 2025, also have an additional three years before repayment begins.
Short-term rental owners should take note of new rules that prevent property owners from claiming rental deductions if they are not in compliance with municipal or provincial licensing and permit requirements. Meanwhile, changes to the Alternative Minimum Tax will affect higher-income earners by increasing the tax rate and modifying how deductions and credits are calculated.
Workers will also see adjustments to Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) contributions. As of January, employees and employers are required to make a second additional contribution of 4 per cent on earnings above the regular pensionable maximum. The self-employed rate for these additional contributions is 8 per cent.
Capital gains tax changes ahead
A planned increase to the capital gains inclusion rate will take effect Jan. 1, 2026. At that point, individuals will pay tax on two-thirds of any capital gains exceeding $250,000 annually, up from the current one-half inclusion rate. The increase will apply to all capital gains for corporations and most types of trusts.
While the new rate is still a year away, the CRA is updating its systems to reflect the current one-half inclusion rate. That means some taxpayers may experience delays when filing online. To compensate, late-filing penalties and interest will be waived until June 2, 2025, for individuals and May 1, 2025, for trusts.
Faster, easier tax filing
The CRA is offering more digital services to streamline tax season. A document verification service now allows taxpayers to verify their identity online for immediate access to their CRA account, eliminating the wait for a mailed security code. The agency has also introduced live chat in My Account, giving users a direct line to a CRA agent for account-specific questions.
For those filing electronically, direct deposit remains the fastest way to receive a refund—processing times can be as quick as eight business days, compared to eight weeks for paper returns. The CRA’s new podcast, Taxology, offers tax tips and fraud prevention advice for those looking to stay informed.
Filing still matters, even if you have no income
Even those who earned no income in 2024 should file a tax return to ensure they continue receiving benefits and credits such as the Canada Child Benefit, Canada Workers Benefit and GST/HST credit. Those eligible for the Canada Carbon Rebate must also file their taxes to receive the payment, which offsets the cost of federal carbon pricing.
For Albertans who need assistance, free tax clinics are available in-person and online for those with modest incomes and simple tax situations. Some individuals may also be eligible to file over the phone through SimpleFile.
When filing, taxpayers can also check the Elections Canada boxes on their return to confirm their voter registration is up to date for the next federal election.
More details on tax filing can be found at CRA’s website.
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