The 2024 federal budget brought most important changes to Canada’s capital gains tax. Filing taxes correctly in Edmonton has become a vital priority now. These adjustments want to ensure fair taxation and revenue generation, but they have made tax filing more complex for businesses and individuals.
BOMCAS Canada helps clients handle their tax matters since 2018. We provide detailed personal and corporate tax services in Edmonton and surrounding areas. Our team’s expertise covers personal tax planning, compliance, and preparation of various tax forms including T1 and T5.
This piece will help you understand everything about filing taxes in Edmonton for 2025. We will help you tackle the tax season confidently by explaining recent changes, maximizing deductions, and ensuring compliance.
Understanding the Edmonton Tax Landscape in 2025
Image Source: Doane Grant Thornton LLP
Edmonton’s property tax landscape has changed for 2025. The city council approved a 6.1% property tax increase, down from the first proposed 8.1% hike. This change aligns with major updates to Alberta’s provincial tax framework. Taxpayers in Edmonton need to know these changes to file their taxes efficiently this year.
Recent changes to Alberta tax regulations
The 2025 Alberta budget came out on February 27, 2025, and brings several meaningful changes to provincial taxes. The biggest change is a new personal income tax bracket of 8% that replaces the previous 10% rate. This applies to the first $83,601.61 of income starting January 1, 2025. Individual taxpayers could save up to $1,045.02 in 2025 because of this change.
On top of that, the budget adds a non-refundable tax credit. This equals 2% of the amount certain non-refundable tax credits claimed by an individual exceeds $83,601.61. This will give Albertans who claim large tax credits protection from paying more taxes under the new bracket structure.
The picture isn’t all rosy though. Bill 32, which got royal assent on December 5, 2024, created the “Alberta Escalator”. This limits tax bracket indexation to 2%. Tax brackets won’t keep up when inflation goes above 2% – something that’s happened quite often recently. The good news is that the new tax bracket helps offset this potential increase for many taxpayers.
Other notable changes include:
- Locomotive fuel tax goes up to $0.09 per liter from $0.08 on March 1, 2025
- Administration for old eliminated tax credits ends December 31, 2025
- Education property tax mill rates rise for 2025-26 assessment year
How Edmonton’s tax environment is different from other cities
Edmonton’s property taxes work differently than nearby cities. The Capital Region’s non-residential mill rates range from 10.59 in Leduc County to 20.76 in Edmonton. Edmonton’s non-residential mill rate is about 69% higher than what surrounding cities charge and 17% above Calgary’s rate.
Municipal property taxes make up about 70% of what property owners pay in total taxes. The math works like this:
Municipal tax rate = City Budget ÷ total assessed value of all properties
Your individual municipal property taxes = your property assessed value × municipal tax rate
Edmonton has a unique approach. Changes in property values don’t affect how much money the City needs for its programs. Your tax increase depends on how your property’s assessed value changes compared to the city average.
Property values in Edmonton went up by 6.7% on average for 2025. This means if your property value increased by exactly 6.7%, you’ll see a tax increase close to the approved 6.1% city rate. Properties with bigger assessment increases will get higher tax bills.
Edmonton also charges businesses differently than homes. Business tax rates are 2.5 times higher than residential rates. The municipal-only property tax rate that businesses pay is almost triple what homeowners pay.
Key dates for Edmonton taxpayers in 2025
Here are the dates Edmonton taxpayers should remember:
- January 10, 2025: Property owners start getting assessment notices
- March 19, 2025: Last day to file complaints with Assessment Review Board
- April 30, 2025: Regular tax filing and payment due
- June 16, 2025: Self-employed people must file by this date
- June 30, 2025: Mortgage lenders must pay property taxes
Quarterly payment deadlines for 2025:
- March 17, 2025
- June 16, 2025
- September 15, 2025
- December 15, 2025
Alberta Child and Family Benefit (ACFB) payments come on:
- February 27, 2025
- May 27, 2025
- August 27, 2025
- November 27, 2025
Edmonton residents need to understand both city property taxes and provincial income taxes. The combined effect of Edmonton’s 6.1% municipal tax increase and Alberta’s new 8% tax bracket will shape how much tax people pay in 2025.
Getting Ready to File: Essential Preparations
Image Source: Financial Post
Tax season in Edmonton doesn’t have to be stressful if you prepare the right way. A smooth filing process starts with knowing which documents you need and how to keep them in order. Here’s what you need to do before starting your tax return.
Organizing your tax documents and receipts
Good documentation will give you an accurate tax filing. Start by collecting these key items:
- Personal identification information: Your Social Insurance Number (SIN), date of birth, and current address
- Income documentation: T4 slips (employment income), T5 slips (investment income), and statements for other income sources like rental or self-employment
- Deduction and credit records: Receipts for childcare expenses, medical expenses, charitable donations, and tuition documents
- Previous tax information: Last year’s Notice of Assessment, RRSP contribution limits, and any carry-forward amounts
Edmonton residents often create separate folders for income documents, expense receipts, and investment information. Keeping your tax documents sorted throughout the year makes filing much easier. The CRA needs you to keep original copies of your paper documents ready for any future verification.
Make sure to save all supporting documents like receipts and invoices throughout the tax year. This becomes even more important if you’re self-employed.
Verifying your personal information with CRA
Your CRA profile needs accurate personal information to verify your identity and send you correspondence and payments quickly. Update your CRA profile right away if you’ve moved or changed your contact details.
Here’s how you can update your information:
- Online (immediate processing): Sign in to your CRA account and go to the Profile section
- By phone (immediate processing): Keep your SIN, full name, date of birth, complete address, and a tax document ready for verification
- By mail: Complete Form RC325 (Address and Telephone Number Change Request) and mail it to the address on the form
You can also update your information while filing your tax return through paper filing or an EFILE tax preparer. Just note that NETFILE users can’t change their address during filing.
Your direct deposit information should be up to date too. This gets your refunds and benefit payments faster than paper checks.
Setting up your CRA My Account for Edmonton residents
A CRA My Account lets you access your tax information securely online and handle various tax matters. This service helps Edmonton residents manage their taxes efficiently.
You’ll need these items to register:
- Your SIN
- Your date of birth
- Amounts from your most recent tax return (current or previous year)
The registration happens in two steps. After entering your details, verify your identity through:
- Document verification service (immediate access): Use your mobile device to take a real-time photo of yourself and an accepted government ID
- CRA security code (access within 10 business days): Get a code mailed to your address
The CRA uses multi-factor authentication (MFA) for extra security when you sign in. Pick between an authenticator app, phone calls, or a passcode grid for your one-time codes.
Your account gives you access to view tax information, apply for benefits, and submit documents. You can even chat with live CRA agents about your account. The Auto-fill feature saves time by pulling information the CRA already has into your tax return.
Edmonton taxpayers can get extra help through free tax clinics, online courses about personal income taxes, and the CRA Chatbot on their homepage.
Personal Tax Returns Filing in Edmonton: Step-by-Step
Filing personal tax returns in Edmonton needs you to understand several key steps that ensure compliance and maximize your benefits. Here’s what you need to know about tax filing in 2025.
Determining your residency status
Your residency status affects your tax obligations in Canada by a lot. You need to determine if you’re a resident, non-resident, or deemed resident before starting your tax return.
The Canada Revenue Agency (CRA) bases residency on your residential ties to Canada, not your immigration status. CRA reviews both primary and secondary factors:
Primary residential ties include:
- Having a home in Canada
- Having a spouse or common-law partner in Canada
- Having dependents in Canada
Secondary residential ties include:
- Personal property (furniture, vehicles) in Canada
- Social ties (memberships in Canadian organizations)
- Canadian driver’s license or passport
- Bank accounts and credit cards in Canada
You can file Form NR74 with the CRA if you’re not sure about your status and entered or stayed briefly in Canada. You can also request a determination by filing Form NR73, which asks about your circumstances.
Your province of residence for tax purposes depends on where your main residential ties are located on December 31 of the tax year. This determines your provincial tax rates and benefits.
Gathering required documents and information
You’ll need several essential documents to file your taxes in Edmonton. Start with your personal identification:
- Social Insurance Number (SIN)
- Birth dates for you, your spouse, and any dependents
- Your NETFILE access code if filing online
Make sure you have all income-related documents:
- T4 slips (employment income)
- T4E (Employment Insurance benefits)
- T3, T5, T5008 (investment income)
- T4A (other pensions and income)
- Records of any self-employment income
You’ll also need documentation for deductions and credits:
- RRSP contribution receipts
- Medical expense receipts
- Charitable donation receipts
- Childcare expense receipts
- Tuition slips (T2202)
- Home office expense records if applicable
Keep your previous year’s Notice of Assessment and any CRA correspondence handy. Good record-keeping throughout the year helps ensure you don’t miss anything important.
Choosing between DIY and professional help
Several factors determine whether you should file taxes yourself or hire a professional. DIY tax filing saves money. It helps you understand your finances better as you review your tax situation.
In spite of that, DIY tax filing takes time and might lead to errors, especially with complex tax situations. DIY works well if:
- Your tax situation remains mostly unchanged
- You have a straightforward return with standard deductions
- You know how to use tax software or online filing
You might need professional help if:
- You’ve had major life changes (marriage, new job, etc.)
- You own a business or have rental properties
- You’ve missed filing in previous years
- You don’t have time or patience for the process
Check the qualifications of any professional you choose and make sure they explain their process clearly. Edmonton accountants offer services for both simple and complex tax situations.
Filing deadlines specific to Alberta residents
Edmonton residents face penalties and interest charges for missing tax deadlines. Here are the key dates for the 2025 tax season:
- February 24, 2025: First day to file taxes online through NETFILE
- April 30, 2025: Most individuals must file their income tax return and pay taxes owed
- June 16, 2025: Self-employed individuals and their spouses must file (extended from June 15 as it falls on a Sunday)
Self-employed individuals who qualify for the June filing extension still need to pay any taxes owed by April 30, 2025, to avoid interest charges.
Quarterly tax installment deadlines for 2025 are March 17, June 16, September 15, and December 15. Early filing gets you faster refunds and gives you time to fix any issues that come up. Use CRA-certified tax software or contact a qualified Edmonton accounting firm to make the process easier.
Maximizing Your Tax Benefits as an Edmonton Resident
Smart Edmonton taxpayers know which tax benefits work best for their situation. Alberta gives its residents several unique tax advantages that can reduce their tax burden by a lot when they file correctly.
Alberta-specific tax credits and deductions
Alberta has one of Canada’s most competitive tax structures, and its residents pay the lowest overall taxes in the country. Alberta’s new tax bracket for 2025 comes with an 8% rate (down from 10%) for the first $83,601.61 of income. The province created a supplemental tax credit to balance any effects. This credit equals 25% of the amount by which certain non-refundable tax credits exceed $6,688.13.
Families should claim the Alberta Child and Family Benefit (ACFB). This non-taxable benefit takes the place of earlier programs and sends quarterly payments to eligible families. The maximum benefits from July 2024 start at $2,046.85 base component plus $1,047.81 working component for one child. Families with four or more children can receive up to $3,674 plus $1,982. The payments arrive in August, November, February, and May.
Alberta’s charitable donations tax credit stands out from other provinces. The province gives a 60% tax credit rate for the first $278.67 of donations (up from 10% before). This makes even small donations more valuable. Donations above this amount still receive a 21% credit rate.
Municipal property tax considerations
Edmonton homeowners will see a 6.1% tax increase in 2025, which is less than the original 8.1% proposal. A typical Edmonton home valued at $627,012.09 will have a property tax bill of about $5,099.70 in 2025.
Edmonton residents have several ways to pay. The Property Tax Monthly Payment Plan lets them spread payments throughout the year through automatic bank withdrawals. They can also add property taxes to their mortgage payments. It’s worth mentioning that mortgage lenders pay by June 30, but processing might take up to 15 business days.
Property owners might qualify for these tax breaks:
- Seniors Property Tax Deferral Program for eligible seniors
- Affordable Housing Tax Grant for qualifying properties
- Heritage Non-Residential Property Tax Exemption for buildings getting rehabilitation
- Retroactive Municipal Tax Relief under Council Policy C607B in specific cases
Edmonton energy efficiency rebates and credits
Edmonton’s Home Energy Retrofit Accelerator program (HERA) has reached its limit and no longer takes new homeowner enrollments or rebate applications. This program used to offer rebates for energy efficiency upgrades like high-efficiency furnaces, insulation, and windows.
The City of Edmonton’s Clean Energy Improvement Program has also hit its current capacity and isn’t taking applications. The good news is that this program will start taking applications again in May 2025.
Edmonton residents can still use federal incentives even with these local program limits. The Government of Canada’s Greener Homes Initiative provides grants and interest-free loans for energy efficiency upgrades and renewable energy systems. Homeowners can get valuable tax benefits through this program when they improve their property’s energy efficiency.
You can stack rebates with other energy efficiency incentive programs up to 100% of your total investment. This means Edmonton residents can combine federal and provincial programs when available to get the most benefits.
Corporate Tax Returns Filing in Edmonton: Business Essentials
Edmonton businesses must follow tax requirements that differ from individual taxpayers. Alberta’s corporate tax environment stands as one of Canada’s most competitive, which gives entrepreneurs advantages while they must meet specific compliance obligations.
Small business tax obligations in Alberta
Alberta boasts Canada’s lowest corporate tax rates with a general rate of 8%. Small businesses that earn active business income below CAD 696,680.10 pay a reduced rate of just 2%. The total corporate income tax rate reaches 23% after adding the federal rate of 15%.
Canadian-Controlled Private Corporations (CCPCs) get special treatment in Alberta. These corporations can skip monthly tax installments and delay their total tax payment until the third month after their taxation year. This rule applies if they claim the Alberta small business deduction and have taxable income of CAD 696,680.10 or less. Small businesses that qualify benefit from better cash flow.
Corporate filing deadlines and extensions
Your corporation’s fiscal year-end determines the filing deadlines. Every business needs to submit its Alberta Corporate Income Tax Return (AT1) within six months after each tax year ends. Here are some examples:
- September 30th becomes your filing deadline if your tax year ends March 31st
- February 28th becomes your deadline if your tax year ends August 31st
- March 23rd becomes your deadline if your tax year ends September 23rd
Payment deadlines work differently than filing deadlines. Most corporations pay taxes through monthly or quarterly installments throughout the year. The remaining balance comes due within two months after the tax year ends. Qualifying CCPCs get three months after year-end to make their payment.
Businesses that owe CAD 4,180.08 or less might not need to make installments. These companies can pay their taxes as one lump sum by the balance-due date. New corporations in their first year must pay their entire tax amount by the balance-due date instead of making installments.
Record-keeping requirements for Edmonton businesses
Edmonton businesses must keep proper records including:
- Accounting information and financial documents
- Tax returns and supporting materials
- Corporate records such as shareholder meeting minutes
- Sales receipts, contracts, and bank statements
Your principal place of business should store these records, though TRA lets Alberta taxpayers keep records anywhere in Canada. Different records need different retention periods. Permanent records like articles of incorporation need two years of storage after dissolution. Non-permanent records usually need six years of storage from the last related taxation year.
Electronic formats can replace paper documents if you keep backup copies. These backup copies need storage in a separate location away from magnetic fields, direct light, and excessive moisture.
GST Returns Filing in Edmonton: What You Need to Know
GST filing requirements confuse many Edmonton business owners, yet compliance is vital to avoid penalties. Alberta stands out as all but one of these provinces have a provincial sales tax. This makes GST calculations straightforward with a single 5% federal rate.
Edmonton businesses need to register for GST
Your business must register for GST once worldwide revenue exceeds CAD 41,800.81 in either:
- A single calendar quarter, or
- Four consecutive calendar quarters
The business must charge GST right after registration, even if it was a “small supplier” before. You need to complete registration within 29 days of crossing the threshold. Some businesses might benefit from registering before reaching this threshold. This helps them claim input tax credits (ITCs) on business purchases.
Calculating and reporting GST for Alberta businesses
Almost all GST registrants must file returns electronically for reporting periods after December 31, 2023. Most businesses use this formula to calculate their GST remittance:
GST collected from customers − eligible ITCs = net tax payable
Your filing frequency depends on business size:
- Monthly: Required for businesses with over CAD 6 million in annual taxable supplies
- Quarterly: Standard for most small-to-medium businesses
- Annual: Available for businesses with under CAD 1.5 million in taxable supplies
The Quick Method of accounting helps eligible small businesses calculate GST. This option works for companies with annual worldwide taxable supplies under CAD 557,344.08.
Common GST filing mistakes to avoid
Late GST registration after crossing the threshold tops the list of common errors. Charging wrong GST rates to customers in different provinces is another big mistake.
Businesses often make these ITC calculation errors:
- Claiming GST paid on personal expenses
- Claiming GST for purchases used to make exempt supplies
- Claiming full GST on restricted expenses like meals and entertainment (only 50% is claimable)
Poor record-keeping creates problems during CRA reviews. Your business must keep supporting documents for all GST transactions, even though these don’t go with returns. Filing or paying late brings penalties and interest charges. These costs add up fast in today’s interest rate environment.
Edmonton businesses should keep accurate records, use CRA-certified accounting software, and ask for professional help with complex situations to stay compliant.
Navigating Complex Tax Situations in Edmonton
Tax filing in Edmonton can get tricky when you have complex situations. Learning the details will help you avoid mistakes that can get pricey and make the most of your benefits.
Self-employment and gig economy considerations
Edmonton’s self-employed workers need to report all their independent work income, including cash and barter deals. You’ll need to fill out Form T2125 (Statement of Business or Professional Activities) with your tax return, unlike regular employees.
Self-employed Canadians have until June 16, 2025 to file returns, but taxes are still due April 30. You also need to pay both employee and employer portions of CPP. This adds up to 11.9% of your income with a cap of CAD 10,777.64 in 2024.
Your taxable income can drop substantially with eligible business expenses. The CRA wants to see proof of all your claimed deductions, so keep detailed records of everything.
Rental property income reporting
Form T776 is what you’ll use to report rental income from Edmonton properties. This covers all types of payments – cash, cheques, or payments in kind.
You can deduct reasonable costs that relate to your rental income. People who rent part of their main home need to split expenses based on the rental space’s square footage or room count.
Capital cost allowance (CCA) claims work for rental properties but can’t create or increase a rental loss.
Investment income and capital gains
The 2025 rules keep the 50% capital gains inclusion rate. This means half your capital gains count as taxable income. Let’s say you sell stocks and make CAD 10,000 more than you paid – only CAD 5,000 gets added to your taxable income.
Your adjusted cost base (ACB) matters for capital gains calculations. Take your original purchase price and add any buying fees. Your taxable gain is what you get after subtracting this ACB from your selling price.
Foreign income and assets declaration
Edmonton residents must report their worldwide income from all sources. You’ll need to file Form T1135 (Foreign Income Verification Statement) if your foreign property’s total cost is more than CAD 139,336.02.
Foreign property includes offshore bank accounts, investments abroad, and non-resident trusts. Missing these reports can lead to big penalties. Your Form T1135 deadline matches your income tax return due date.
How BOMCAS Canada Accountants in Edmonton Can Help
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Tax complexity can feel overwhelming. BOMCAS Canada helps Edmonton residents with their 15 years of specialized accounting and tax expertise. The team creates affordable solutions that match your financial situation.
Professional tax preparation services
BOMCAS handles both personal and corporate tax filing needs in Edmonton and Sherwood Park. Their qualified team specializes in:
- Complete return preparation – Tax experts at BOMCAS prepare your documents carefully. They organize everything properly to maximize eligible deductions and credits
- Documentation management – You just need to provide your tax forms and documentation. BOMCAS professionals take care of everything else from preparation to filing
- Expertise in complex situations – Their accountants know how to handle complicated returns that involve self-employment, investment income, and rental properties
BOMCAS’s deep knowledge of tax laws and benefits ensures your taxes are done right every time. Their detailed approach often leads to larger refunds.
Year-round tax planning and consultation
Tax planning isn’t just a yearly event. The BOMCAS team monitors and supports you continuously. They adjust your tax strategy as your financial situation changes. This hands-on approach helps you make smart decisions throughout the year that can lower your tax burden substantially at filing time.
The team identifies tax-saving opportunities, optimizes deductions, and makes sure you get all available tax benefits. Business owners can get strategic advice on corporate structures and stay compliant with the latest tax regulations.
Audit support and representation
CRA audits can be scary. BOMCAS stands by you through this challenging process. Their team reviews documentation, prepares responses to tax authorities, and keeps everything compliant with audit procedures.
BOMCAS represents you directly if you’re going through an audit or worried about being audited. They deal with CRA auditors on your behalf to minimize penalties and protect your rights throughout the process.
Virtual and in-person service options
BOMCAS knows clients have different needs. You can meet with their experts virtually or in person at their Edmonton and Sherwood Park offices.
Their online accounting services use secure digital technology to help clients in Edmonton and nearby areas. You get modern convenience and personal attention, with dedicated support that matches how you want to work with their team.
Conclusion
Recent changes have made tax filing requirements more complex for Edmonton residents. The new 8% tax bracket and 6.1% property tax increase mean residents just need to pay extra attention to documentation, deadlines, and available benefits.
Personal tax filers must keep track of income sources from all types, deductions, and credits while staying up-to-date with Alberta’s specific programs. Business owners shoulder additional responsibilities. These include GST compliance, corporate tax obligations, and proper record-keeping requirements.
Situations like self-employment, rental properties, or foreign income require extra diligence. BOMCAS Edmonton Accountants can help you file your taxes correctly and on time. Their expertise will help you maximize returns while ensuring full compliance with current regulations.
Tax planning goes beyond your annual filing. You can secure your financial future by staying informed about tax law changes and keeping accurate records throughout the year. Professional guidance at the right time makes a significant difference. Note that early preparation and proper documentation are essential to successful tax filing in Edmonton.
FAQs
Q1. When does tax filing season begin in Edmonton for 2025? Tax filing season in Edmonton for the 2025 tax year begins on February 24, 2025. This is the earliest date you can file your taxes online through NETFILE.
Q2. What are the key tax deadlines for Edmonton residents in 2025? The main tax deadlines for Edmonton residents in 2025 are April 30 for most individuals to file their income tax return and pay any taxes owed, and June 16 for self-employed individuals and their spouses to file (extended from June 15 as it falls on a Sunday).
Q3. How has Alberta’s tax structure changed for 2025? Alberta introduced a new tax bracket with an 8% rate (reduced from 10%) for the first $83,601.61 of income. Additionally, a supplemental tax credit was created to offset potential impacts of this change.
Q4. What property tax changes should Edmonton homeowners expect in 2025? Edmonton property owners will see a 6.1% tax increase in 2025. For the average Edmonton home assessed at $627,012.09, the 2025 property tax bill will be approximately $5,099.70.
Q5. Are there any energy efficiency rebates available for Edmonton residents in 2025? While local programs like HERA are currently fully subscribed, Edmonton residents can still access federal incentives such as the Greener Homes Initiative, which offers grants and interest-free loans for energy efficiency upgrades and renewable energy systems.