Property taxes, electric vehicles and other taxes increasing in 2025

The carbon tax not only affects those who drive, but homeowners as well, with a majority of home heating using natural gas.

Electric vehicle owners will be required to pay $200 in provincial taxes upon registration this year.

This was not implemented on Jan. 1, as a timeline has yet to be released for the tax.

Last February, the Alberta government’s budget stated that electric vehicles cause more wear and tear on provincial roadways, while their owners pay no fuel tax.

This new tax won’t be applied to hybrid vehicles. It is anticipated to generate $5 million throughout the year.

A provincial tax on vaping products was applied on Jan. 1.

This was alongside the existing federal tax of $1.12 per two for the first 10 mL of vaping liquid, and the same amount per 10 mL for amounts exceeding 10 mL.

The new tax is anticipated to generate $18 million this year.

In Medicine Hat, property taxes will increase in 2025 by 5.6 per cent.

Homeowners will see a municipal increase of about $10 per month, based on the 2024 average assessed value of residential properties.

Federal alcohol taxes will also increase in April by two per cent. This will cost taxpayers about $40 million in 2025.

The federal government is also raising mandatory Canada Pension Plan and Employment Insurance contribution amounts.

The payroll tax increases can cost workers up to an additional $400 this year.

Andrew Quiring, partner at Schwab and Co. Chartered Professional Accountants, said that CPP payments could meet this amount.

“Starting this year, the EI rate will actually decrease by two per cent. So for those who make $63,000 or less, they’ll actually be paying a bit less EI,” he said.

“Those who make the maximum, it’s only an increase of $28 from the prior year,” he added.

“With CPP, however, if you make the maximum, you’ll be paying $400 more than in the prior year.”

Quiring said that the maximum earnings increase every year. He said the rate, however, does fluctuate.

It goes up and down throughout the year, but generally stays fairly consistent.

He said that the government issued a new CPP Enhancement Policy in 2019, which has since seen an increase in max earnings.

“In 2018, the rate was 4.95 for CPP, and the max earnings was $53,000. Now it’s $81,000, and the rate is 5.95,” he said.

“Starting in 2019, the rate gradually increased until we got to 2023, when it was now 5.95.”

Quiring said that in 2024 the government added another level to the CPP.

Upon reaching the threshold, four per cent was payed to the CPP up to the maximum.

“In 2025, that level’s actually increased as well. So in 2024, you would have paid $188 of this CPP second level, but now you’re doubling it to $396.”

With the arrival of 2025, new tax increases have started the new year off to a costly start.

by Jayk Sterkenburg

Property taxes, electric vehicles and other taxes increasing in 2025

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