Carbon Tax to increase by $15 per tonne in April

FORT ST. JOHN, B.C. — The Canadian Taxpayers Federation has released its 2025 New Year’s Tax Changes report outlining tax changes on the federal and provincial levels. 

According to the report released in December 2024, British Columbia’s Carbon Tax will rise from $80 per tonne to $95 per tonne on April 1st, 2025.

The tax will cost 21 cents per litre of gas, 25 cents per litre of diesel, and 18 cents per cubic metre of natural gas.

“For a couple in B.C. that owns a Dodge Caravan and Ford F-150: The carbon tax will cost almost $15 to fuel up the minivan and nearly $21 to fuel up the pick-up truck when it reaches $95 per tonne,” the report explains.

The report highlights that the average Canadian home uses 2,385 cubic metres of natural gas annually. 

The province’s Home Flipping Tax also increased at the beginning of January, affecting the incomes of residents who have sold a taxable property in the province after owning it for less than 730 days.

When the property is sold within 365 days, the tax rate is 20 per cent of income earned, with the rate decreasing over the next year.

The tax no longer applies when the property has been owned for 730 days (two years).

“The total annual carbon tax bill on natural gas, including the first three months of the year at $80 per tonne, will be $415,” says the report. 

This results in the total yearly carbon tax being roughly $1,470.

All Canadian workers earning $64,000 or less in federal income will pay less, while those in higher income brackets will pay more. 

The report also credits the Fraser Institution, which says the average Canadian family pays 43 per cent of its budget in taxes.

The Canada Pension Plan (CPP) will require employers and employees to pay $4,034 more in 2025, an increase of $167.

The second CPP tax, which began in 2024, will increase incomes between $71,300 and $81,200, with a maximum tax amount of $396 in 2025.

“This means that the overall CPP tax paid for workers earning $81,200 or more will be about $4,430, for a total increase of $375 (CPP + CPP2) in 2025,” says the report. 

The Federal Government’s Employment Insurance (EI) tax rate is being “slightly reduced” while the maximum insurable earnings increase.

Employees will be required to pay $1,077, and employers to pay $1,508 in 2024. 

This results in a total change of $28 in employee tax and $40 in employer tax. 

The Canadian Taxpayers Federation’s full 2025 New Year’s Tax Changes report can be viewed below: