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2025 Canadian OAS, CPP, EI, Tax rates & Contribution Limits

Breakdown of 2025 Canadian Tax Rates and Thresholds

The 2025 Canadian tax rates and contribution limits for OAS, CPP, and EI bring important changes that could affect both individual and business financial plans.

Staying informed about changes to government benefit programs and tax thresholds is essential for sound financial planning. Whether you’re managing payroll, running a business, or preparing for retirement, understanding updates to Old Age Security (OAS), Canada Pension Plan (CPP), Employment Insurance (EI), personal income tax brackets, and registered account contribution limits can help you make strategic decisions.

At Stark & Marsh, we help clients make sense of these updates and apply them to their unique financial goals.

 

Old Age Security (OAS)

  • Eligibility: Age 65+, with at least 10 years of residency in Canada after age 18.
  • Maximum Monthly Payment (Q2 2025):
    • Ages 65–74: $713.34
    • Age 75+: $784.67
  • Clawback Threshold: Begins at $90,997 net income; fully clawed back at around $148,065.
  • Deferral Option: OAS can be deferred up to age 70 for increased monthly payments.

Canada Pension Plan (CPP)

  • Contribution Rates:
    • Employees: 5.95%
    • Self-Employed: 11.90%
  • Maximum Pensionable Earnings: $68,500
  • Basic Exemption: $3,500
  • Max Annual Employee Contribution: $3,867.50
  • Max Monthly Retirement Benefit (age 65): ~$1,364.60
  • Additional CPP (CPP2):
    • Applies to income between $68,500 and $73,200
    • Rates: 4.00% (employees), 8.00% (self-employed)

Employment Insurance (EI)

  • Premium Rate (2025):
    • Employees: 1.66%
    • Employers: 2.32% (1.4x the employee rate)
  • Maximum Insurable Earnings: $63,200
  • Max Annual Premiums:
    • Employees: $1,049.12
    • Employers: $1,468.77

2025 Federal Personal Income Tax Brackets

Taxable Income Range Federal Tax Rate 
Up to $55,867 15%
$55,867-$111,733 20.5%
$111,733-$173,205 26%
$173,205-$246,752 29%
Over $246,752 33%

Provincial tax rates apply in addition to the above.

2025 Registered Contribution Limits

  • RRSP (Registered Retirement Savings Plan):
    • Max Contribution Limit: $32,490 (or 18% of 2024 earned income, whichever is less)
  • TFSA (Tax-Free Savings Account):
    • Annual Limit: $7,000
    • Lifetime Limit (as of 2025): $102,000 (assuming full eligibility since 2009)
  • FHSA (First Home Savings Account):
    • Annual Limit: $8,000
    • Lifetime Limit: $40,000

“We help our clients create more wealth by analyzing their current tax situation, using tax-efficient investments, focusing on tax brackets, and minimizing tax burdens and OAS clawbacks.”

Candace Gelleta, Stark & Marsh

Questions we can help you anwser

  • As a business owner, should you be paying into CPP?
  • EI is not an option — are you covered for disability?
  • When can I retire, and how should I be investing for retirement?
  • How can you protect your assets?

Our advisors are here to help guide your decisions with clarity and strategy.

Conclusion

Understanding the changes in benefit programs, tax brackets, and contribution limits is vital for both personal and business planning. At Stark & Marsh, we specialize in helping our clients optimize their financial path through personalized advice and up-to-date knowledge.

If you have questions or want to build a more tax-efficient future, reach out to our team. We’re here to help you grow and protect your wealth with confidence.

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