Canada's Budget 2025 Unveils Sweeping Tax Reforms: New Business Incentives, Personal Tax Relief, Anti-Avoidance Measures, and Repeal of Housing and Luxury Levies

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Canada's Minister of Finance and National Revenue, François-Philippe Champagne, tabled the federal government's Budget 2025: Canada Strong on 4 November 2025. The Department of Finance Canada released the related Budget documentation the same day. For prior coverage, seeCanada Set to Table Budget 2025 on 4 November 2025 (4 November 2025).

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Once enacted, Budget 2025 will:

  1. introduce a new Personal Support Workers Tax Credit;
  2. repeal the Underused Housing Tax;
  3. expand critical mineral eligibility under clean investment tax credits; and
  4. implement enhanced rules for transfer pricing and tax deferral through tiered corporate structures.

Further information on specific measures is covered in the following detailed reports:

  1. personal income tax measures;
  2. business tax measures;
  3. international tax measures; and
  4. sales tax and excise duty measures.

Note: In Canada, to "table" a Budget means to formally introduce it for immediate debate and consideration by the legislative body. This is different than in countries like the United States where "table" means to postpone or suspend consideration of a bill, effectively "killing" the measure.

Reported from the IBFD Newsroom. Learn more about Canada's tax reforms via our daily Tax News Service (subscribers only).

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