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Ottawa to Launch Automatic Tax Filing for Low-Income Canadians in 2025 Budget
The federal government is set to introduce automatic tax filing for low-income Canadians as part of the 2025 budget, Prime Minister Mark Carney announced Friday. The initiative, led by the Canada Revenue Agency (CRA), aims to ensure that millions of Canadians who often miss out on benefits due to unfiled tax returns will now receive the support they qualify for.
The program will begin in 2027, covering roughly one million people with simple tax situations, and is expected to expand to 5.5 million Canadians by 2028. Eligible individuals will automatically have their taxes filed through the CRA’s secure online system, granting access to benefits such as the GST/HST credit, the Canada Child Benefit, and the Canada Disability Benefit.
Carney emphasized that many low-income Canadians do not file taxes because they lack resources or believe their income is too low to matter. “Too often, the people who most need benefits don’t get them,” he said.
The measure builds on earlier pilot programs and represents a significant step toward reducing barriers for vulnerable Canadians while improving access to essential financial supports.
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