Tax Savings Calculator
Calculate how much you can save on your 2025 Canadian taxes with RRSP contributions, medical expenses, charitable donations, and more.
Your Information
Tax-Saving Contributions
2025 limit: 18% of income (max $31,560)
Only amount above 3% of income or $2,635 (whichever is less)
15% credit on first $200, 29% on amount over $200
Up to $8,000 per child under 7, $5,000 for ages 7-16
Your Tax Savings
TOTAL TAX SAVINGS
$0
More money in your pocket!
Savings Breakdown
💡 Personalized Recommendations
Enter your information and click "Calculate" to see your potential tax savings
How to Maximize Your Tax Savings in Canada
Understanding how to reduce your tax burden is crucial for Canadian taxpayers. Our tax savings calculator helps you identify opportunities to save thousands of dollars on your 2025 tax return through legitimate deductions and credits.
RRSP Contributions: Your Biggest Tax Saver
Contributing to your Registered Retirement Savings Plan (RRSP) is one of the most effective ways to reduce your taxable income. For 2025, you can contribute up to 18% of your previous year's earned income, to a maximum of $31,560. Every dollar you contribute reduces your taxable income by the same amount, potentially saving you 20-50% in taxes depending on your tax bracket.
Medical Expense Tax Credit
Medical expenses can add up quickly, but many Canadians don't realize they can claim these costs. You can claim eligible medical expenses that exceed either 3% of your net income or $2,635 (whichever is less). This includes prescription medications, dental work, vision care, and many other health-related expenses.
Charitable Donation Tax Credits
When you donate to registered Canadian charities, you receive a tax credit of 15% on the first $200 and 29% (or your highest marginal rate) on amounts over $200. This means a $1,000 donation could save you approximately $262 in federal taxes, plus additional provincial savings.
Childcare Expense Deduction
If you have children and pay for childcare so you can work or attend school, you may be able to deduct these expenses. For 2025, you can claim up to $8,000 per child under 7 years old, and $5,000 for children aged 7-16. This deduction directly reduces your taxable income.
Tax Planning Tips for 2025
- Contribute to your RRSP before the March 1, 2025 deadline to claim it on your 2024 tax return
- Keep all receipts for medical expenses throughout the year
- Consider bunching charitable donations in one year to maximize the higher credit rate
- Track all childcare expenses and get receipts from your provider
- Review your tax situation mid-year to make adjustments before year-end
💡 Pro Tip
The best time to plan your tax savings is NOW, not at tax time. Use this calculator throughout the year to see how different contributions and expenses affect your tax bill, then adjust your strategy accordingly.
Frequently Asked Questions
What's the RRSP contribution deadline for 2024 taxes?
The deadline to contribute to your RRSP for the 2024 tax year is March 1, 2025. Contributions made by this date can be claimed on your 2024 tax return.
Can I claim medical expenses for my spouse and children?
Yes! You can claim eligible medical expenses for yourself, your spouse or common-law partner, and your dependent children under 18.
How much can I save with charitable donations?
You receive a 15% tax credit on the first $200 donated, and 29% (or your highest marginal rate) on amounts over $200. Provincial credits add even more savings.