Between patient care and practice management, taxes can easily fall off a doctor’s radar. But with 2025 just around the corner, now is the ideal time to get ahead. Strategic tax planning can help you keep more of what you earn while staying compliant with evolving CRA rules. Here’s a smart, physician-focused checklist to help you prepare efficiently.
- Organize Your Income Sources Early
If you earn income from multiple sources — salaried hospital work, locum tenens, private practice, or a medical corporation — keeping those records in one place is critical. Collect T4s, T4As, dividends, and any practice-related financials as they become available. Staying organized now will save time (and frustration) during tax season. - Review and Maximize RRSP Contributions
Your RRSP limit for 2025 is based on 18% of your 2024 earned income, up to the CRA’s annual maximum. Contributing before the deadline (likely March 1, 2026) can lower your taxable income. Consider using quieter months to calculate optimal contributions and avoid last-minute decisions. - Consider the Timing of Major Expenses
Planning to invest in equipment, technology, or CME courses? Depending on your structure, timing these purchases before year-end could offer deductions or capital cost allowances. A quick consult with your accountant can help you make those decisions strategically. - Don’t Forget About the TFSA
While not tax-deductible, a Tax-Free Savings Account allows your investments to grow without tax. In 2025, the contribution limit may increase again, so staying current ensures you’re maximizing tax-free growth potential alongside your RRSP strategy. - Revisit Your Incorporation Strategy
If you’re incorporated, it’s worth revisiting your compensation mix: salary vs. dividends. Changes in tax rules or income levels might impact what’s most beneficial in 2025. Talk to your accountant about optimizing for both short-term cash flow and long-term tax deferral. - Prepare for Any CRA Updates
Each year, the CRA introduces tweaks and new credits that can affect physicians directly. From digital tool write-offs to first-year equipment incentives, staying informed can help you take full advantage of what’s available.
Final Thoughts
Tax season doesn’t need to be a scramble. A little planning now means fewer surprises and more clarity later. Whether you’re newly practicing or have a full team supporting your clinic, aligning your tax strategy early in the year will keep you focused on what matters most—your patients. Contact MedTax today for your free consultation.
