2025 July Payroll Tax Changes
The following settings are based on the CRA document T4127–Payroll Deductions Formulas for Computer Programs – 121st Edition.
Effective July 1, 2025, there are no changes made to EI nor CPP.
Please Note: There may be a change to Federal Tax from 15% to 14%
There are no changes for British Columbia and Ontario Provincial Taxes/Exemptions but you must add a new set of Provincial Exemptions with the July 1, 2025 effective date. The provincial exemptions for your province will be the same as the exemptions for January 1, 2025.
The Global Federal and Provincial exemptions, tax tables and tax parameters will only need to be added once for all payrolls. You would add the new exemptions and tax tables using a new effective date of July 1, 2025 or 20250701. The new Global tables can be added at any time as those tables are date effective.
Statutory Deduction Changes For July 2025
Global Federal Tax Tables
Once legislated, the following change can be made effective July 1 2025.
The Global Federal Tax Tables values would be added using a new effective date of July 1, 2025. Leave the existing Federal Tax Tables as is. The new Federal Tax Table values should be as follows:
Payroll System Maintenance > Payroll Database Maintenance
Setup Table: Federal Tax Table
Action: Add
Tax Table Step | Factor 1 | Factor 2 |
57375 | .1400 |
|
114750 | .2050 | 3729 |
177882 | .2600 | 10041 |
253414 | .2900 | 15377 |
9999999 | .3300 | 25514 |
Global Provincial Tax Tables
The Global Provincial Tax Tables values would be added using a new effective date of July 1, 2025. Leave the existing Provincial Tax Tables as is. The new Global Provincial Tax Table values should be as follows:
Payroll System Maintenance > Payroll Database Maintenance
Setup Table: Provincial Tax Table
Action: Add
Alberta | ||
|---|---|---|
Tax Table Step | Factor 1 | Factor 2 |
60000 | .06 |
|
151234 | .1000 | 2400 |
181481 | .1200 | 5425 |
241974 | .1300 | 7239 |
362961 | .1400 | 9659 |
9999999 | .1500 | 13289 |
Manitoba | ||
|---|---|---|
Tax Table Step | Factor 1 | Factor 2 |
46513 | .1080 |
|
98796 | .1275 | 907 |
9999999 | .1740 | 5501 |
Global Provincial Exemptions
The Global Provincial Exemption amounts for July 1, 2025. Add the new Provincial exemptions using the effective date of July 1, 2025. Leave the previous Provincial exemptions as is. The following tables detail the exemption ranges and the exemption mid-points. It is up to each site to determine if they want to use the high end of each range or the mid-point of each range as the exemption amounts.
Payroll System Maintenance > Payroll Database Maintenance
Setup Table: Provincial Exemptions
Action: Add
British Columbia | ||
|---|---|---|
Exemption Code | Range | Mid-Point |
01 | min – 12,932 | 12,932.00 |
02 | 12,932 – 15,842 | 14,387.00 |
03 | 15,842 – 18,752 | 17,297.00 |
04 | 18,752 – 21,662 | 20,207.00 |
05 | 21,662 – 24,572 | 23,117.00 |
06 | 24,572 – 27,482 | 26,027.00 |
07 | 27,482 – 30,392 | 28,937.00 |
08 | 30,392 – 33,302 | 31,847.00 |
09 | 33,302 – 36,212 | 34,757.00 |
10 | 36,212 – 39,122 | 37,667.00 |
Alberta | ||
|---|---|---|
Exemption Code | Range | Mid-Point |
01 | min – 22,323 | 22,323.00 |
02 | 22,323 – 25,516 | 23,919.50 |
03 | 25,516 – 28,709 | 27,112.50 |
04 | 28,709 – 31,902 | 30,305.50 |
05 | 31,902 – 35,095 | 33,498.50 |
06 | 35,095 – 38,288 | 36,691.50 |
07 | 38,288 – 41,481 | 39,884.50 |
08 | 41,481 – 44,674 | 43,077.50 |
09 | 44,674 – 47,867 | 46,270.50 |
10 | 47,867 – 51,060 | 49,463.50 |
Saskatchewan | ||
|---|---|---|
Exemption Code | Range | Mid-Point |
01 | min - 19,991 | 19,991.00 |
02 | 19,991 - 22,435 | 21,213.00 |
03 | 22,435 - 24,879 | 23,657.00 |
04 | 24,879 - 27,323 | 26,101.00 |
05 | 27,323 - 29,767 | 28,545.00 |
06 | 29,767 - 32,211 | 30,989.00 |
07 | 32,211 - 34,655 | 33,433.00 |
08 | 34,655 - 37,099 | 35,877.00 |
09 | 37,099 - 39,543 | 38,321.00 |
10 | 39,543 - 41,987 | 40,765.00 |
Manitoba | ||
|---|---|---|
Exemption Code | Range | Mid-Point |
01 | min – 15,591 | 15,591.00 |
02 | 15,591 - 17,284 | 16,437.50 |
03 | 17,284 - 18,977 | 18,130.50 |
04 | 18,977 - 20,670 | 19,823.50 |
05 | 20,670 - 22,363 | 21,516.50 |
06 | 22,363 - 24,056 | 23,209.50 |
07 | 24,056 - 25,749 | 24,902.50 |
08 | 25,749 - 27,442 | 26,595.50 |
09 | 27,442 - 29,135 | 28,288.50 |
10 | 29,135 - 30,828 | 29,981.50 |
Ontario | ||
|---|---|---|
Exemption Code | Range | Mid-Point |
01 | min – 12,747 | 12,747.00 |
02 | 12,747 – 15,493 | 14,120.00 |
03 | 15,493 – 18,239 | 16,866.00 |
04 | 18,239 – 20,985 | 19,612.00 |
05 | 20,985 – 23,731 | 22,358.00 |
06 | 23,731 – 26,477 | 25,104.00 |
07 | 26,477 – 29,223 | 27,850.00 |
08 | 29,223 – 31,969 | 30,596.00 |
09 | 31,969 – 34,715 | 33,342.00 |
10 | 34,715 – 37,461 | 36,088.00 |
Global Provincial Tax Parameters
Global Provincial Tax Parameters – British Columbia
Add a new set of Global Provincial Tax Parameters using the effective date of 20250701 or July 1, 2025.
Payroll System Maintenance > Payroll Database Maintenance
Setup Table: Provincial Tax Parameters
Action: Add
Tax Credits |
|
|
|---|---|---|
Federal Personal Tax Credit (K1) | .14 |
|
Provincial Personal Tax Credit (K1P) | .0506 |
|
Federal Employment Credit (K4) | 1,471.00 |
Federal Basic Personal Amount (BPAF) |
|
|
|---|---|---|
Minimum Amount | 14,538.00 | |
Threshold | 177,882.00 | |
Threshold | 253,414.00 |
Provincial Basic Personal Amount (BPAP) | (not applicable for BC at this time) |
|---|---|
Minimum Amount | 0 |
Threshold | 0 |
Threshold | 0 |
Maximum Contributions |
|
|
|---|---|---|
CPP Maximum Contributions | 4,034.10 | |
CPP2 Maximum Contributions | 396.00 | |
EI Maximum Contributions | 1,077.48 |
Provincial Tax Reduction (S) |
|
|
|
|
|---|---|---|---|---|
Flat Amount (S2) | 562.00 |
|
| |
Rate | .0356 | Threshold | 25,020.00 | |
Amount | 0 | Threshold | 40,807.00 | |
Amount | 0 | Threshold | 0 |
|
Amount | 0 | Threshold | 0 |
|
Provincial Surtax V1 |
|
|
|
|---|---|---|---|
Flat Amount | 0 |
|
|
Rate | 0 | Threshold | 0 |
Rate | 0 | Threshold | 0 |
Provincial Additional Tax (V2) |
|
|
|
|
|
|---|---|---|---|---|---|
Rate | 0 | Threshold | 0 | Amount | 0 |
Rate | 0 | Threshold | 0 | Amount | 0 |
Rate | 0 | Threshold | 0 | Amount | 0 |
Rate | 0 | Threshold | 0 | Amount | 0 |
Rate | 0 | Threshold | 0 | Amount | 0 |
Rate | 0 | Threshold | 0 | Amount | 0 |
Global Provincial Tax Parameters – Alberta
Add a new set of Global Provincial Tax Parameters using the effective date of 20250701 or July 01, 2025.
Payroll System Maintenance > Payroll Database Maintenance
Setup Table: Provincial Tax Parameters
Action: Add
Tax Credits |
|
|
|---|---|---|
Federal Personal Tax Credit (K1) | .14 |
|
Provincial Personal Tax Credit (K1P) | .06 |
|
Federal Employment Credit (K4) | 1,471.00 |
Federal Basic Personal Amount (BPAF) |
|
|
|---|---|---|
Minimum Amount | 14,538.00 | |
Threshold | 177,882.00 | |
Threshold | 253,414.00 |
Provincial Basic Personal Amount (BPAP) | (not applicable for Alberta at this time) |
|---|---|
Minimum Amount | 0 |
Threshold | 0 |
Threshold | 0 |
Maximum Contributions |
|
|
|---|---|---|
CPP Maximum Contributions | 4,034.10 | |
CPP2 Maximum Contributions | 396.00 | |
EI Maximum Contributions | 1,077.48 |
Provincial Tax Reduction (S) |
|
|
|
|
|---|---|---|---|---|
Flat Amount | 0 |
|
|
|
Rate | 0 | Threshold | 0 |
|
Amount | 0 | Threshold | 0 |
|
Amount | 0 | Threshold | 0 |
|
Amount | 0 | Threshold | 0 |
|
Provincial Surtax V1 |
|
|
|
|---|---|---|---|
Flat Amount | 0 |
|
|
Rate | 0 | Threshold | 0 |
Rate | 0 | Threshold | 0 |
Provincial Additional Tax (V2) |
|
|
|
|
|
|---|---|---|---|---|---|
Rate | 0 | Threshold | 0 | Amount | 0 |
Rate | 0 | Threshold | 0 | Amount | 0 |
Rate | 0 | Threshold | 0 | Amount | 0 |
Rate | 0 | Threshold | 0 | Amount | 0 |
Rate | 0 | Threshold | 0 | Amount | 0 |
Rate | 0 | Threshold | 0 | Amount | 0 |
Global Provincial Tax Parameters – Saskatchewan
Add a new set of Global Provincial Tax Parameters using the effective date of 20250701 or July 1, 2025.
Payroll System Maintenance > Payroll Database Maintenance
Setup Table: Provincial Tax Parameters
Action: Add
Tax Credits |
|
|
|---|---|---|
Federal Personal Tax Credit (K1) | .14 |
|
Provincial Personal Tax Credit (K1P) | .105 |
|
Federal Employment Credit (K4) | 1,471.00 |
Federal Basic Personal Amount (BPAF) |
|
|
|---|---|---|
Minimum Amount | 14,538.00 | |
Threshold | 177,882.00 | |
Threshold | 253,414.00 |
Provincial Basic Personal Amount (BPAP) | (not applicable for Saskatchewan at this time) |
|---|---|
Minimum Amount | 0 |
Threshold | 0 |
Threshold | 0 |
Maximum Contributions |
|
|
|---|---|---|
CPP Maximum Contributions | 4,034.10 | |
CPP2 Maximum Contributions | 396.00 | |
EI Maximum Contributions | 1,077.48 |
Provincial Tax Reduction (S) |
|
|
|
|
|---|---|---|---|---|
Flat Amount | 0 |
|
|
|
Rate | 0 | Threshold | 0 |
|
Amount | 0 | Threshold | 0 |
|
Amount | 0 | Threshold | 0 |
|
Amount | 0 | Threshold | 0 |
|
Provincial Surtax V1 |
|
|
|
|---|---|---|---|
Flat Amount | 0 |
|
|
Rate | 0 | Threshold | 0 |
Rate | 0 | Threshold | 0 |
Provincial Additional Tax (V2) |
|
|
|
|
|
|---|---|---|---|---|---|
Rate | 0 | Threshold | 0 | Amount | 0 |
Rate | 0 | Threshold | 0 | Amount | 0 |
Rate | 0 | Threshold | 0 | Amount | 0 |
Rate | 0 | Threshold | 0 | Amount | 0 |
Rate | 0 | Threshold | 0 | Amount | 0 |
Rate | 0 | Threshold | 0 | Amount | 0 |
Global Provincial Tax Parameters – Manitoba
Add a new set of Global Provincial Tax Parameters using the effective date of 20250701 or July 1, 2025.
Payroll System Maintenance > Payroll Database Maintenance
Setup Table: Provincial Tax Parameters
Action: Add
Tax Credits |
|
|
|---|---|---|
Federal Personal Tax Credit (K1) | .14 |
|
Provincial Personal Tax Credit (K1P) | .108 |
|
Federal Employment Credit (K4) | 1,471.00 |
Federal Basic Personal Amount (BPAF) |
|
|
|---|---|---|
Minimum Amount | 14,538.00 | |
Threshold | 177,882.00 | |
Threshold | 253,414.00 |
Provincial Basic Personal Amount (BPAP) | (new as of 2025 for Manitoba - BPAMB) |
|---|---|
Minimum Amount | 0 |
Threshold | 200,000.00 |
Threshold | 400,000.00 |
Maximum Contributions |
|
|
|---|---|---|
CPP Maximum Contributions | 4,034.10 | |
CPP2 Maximum Contributions | 396.00 | |
EI Maximum Contributions | 1,077.48 |
Provincial Tax Reduction (S) |
|
|
|
|
|---|---|---|---|---|
Flat Amount | 0 |
|
|
|
Rate | 0 | Threshold | 0 |
|
Amount | 0 | Threshold | 0 |
|
Amount | 0 | Threshold | 0 |
|
Amount | 0 | Threshold | 0 |
|
Provincial Surtax V1 |
|
|
|
|---|---|---|---|
Flat Amount | 0 |
|
|
Rate | 0 | Threshold | 0 |
Rate | 0 | Threshold | 0 |
Provincial Additional Tax (V2) |
|
|
|
|
|
|---|---|---|---|---|---|
Rate | 0 | Threshold | 0 | Amount | 0 |
Rate | 0 | Threshold | 0 | Amount | 0 |
Rate | 0 | Threshold | 0 | Amount | 0 |
Rate | 0 | Threshold | 0 | Amount | 0 |
Rate | 0 | Threshold | 0 | Amount | 0 |
Rate | 0 | Threshold | 0 | Amount | 0 |
Global Provincial Tax Parameters – Ontario
Add a new set of Global Provincial Tax Parameters using the effective date of 20250701 or July 1, 2025.
Payroll System Maintenance > Payroll Database Maintenance
Setup Table: Provincial Tax Parameters
Action: Add
Tax Credits |
|
|
|---|---|---|
Federal Personal Tax Credit (K1) | .14 |
|
Provincial Personal Tax Credit (K1P) | .0505 |
|
Federal Employment Credit (K4) | 1,471.00 |
Federal Basic Personal Amount (BPAF) |
|
|
|---|---|---|
Minimum Amount | 14,538.00 | |
Threshold | 177,882.00 | |
Threshold | 253,414.00 |
Provincial Basic Personal Amount (BPAP) | (not applicable for Ontario at this time) |
|---|---|
Minimum Amount | 0 |
Threshold | 0 |
Threshold | 0 |
Maximum Contributions |
|
|
|---|---|---|
CPP Maximum Contributions | 4,034.10 | |
CPP2 Maximum Contributions | 396.00 | |
EI Maximum Contributions | 1,077.48 |
Provincial Tax Reduction (S) |
|
|
|
|
|---|---|---|---|---|
Flat Amount | 294.00 |
|
| |
Rate | 2 | Threshold | 0 |
|
Amount | 544.00 | Threshold | 0 |
|
Amount | 0 | Threshold | 0 |
|
Amount | 0 | Threshold | 0 |
|
Provincial Surtax V1 |
|
|
|
|
|---|---|---|---|---|
Flat Amount | 0 |
|
|
|
Rate | .20 | Threshold | 5,710.00 | |
Rate | .36 | Threshold | 7,307.00 |
Provincial Additional Tax (V2) (Ontario Health Premium) |
|
|
|
|
|
|---|---|---|---|---|---|
Rate | .06 | Threshold | 20000.00 | Amount | 300.00 |
Rate | .06 | Threshold | 36000.00 | Amount | 450.00 |
Rate | .25 | Threshold | 48000.00 | Amount | 600.00 |
Rate | .25 | Threshold | 72000.00 | Amount | 750.00 |
Rate | .25 | Threshold | 200000.00 | Amount | 900.00 |
Rate | 0 | Threshold | 0 | Amount | 0 |