As we near the end of 2025, the era of the arrival of the physical, brown envelope in your mailbox is officially drawing to a close. For decades, many Canadians relied on the Canada Revenue Agency (CRA) to proactively mail paper income tax packages, but as of this year, that process has been discontinued. The push toward a digital-first tax system is no longer a proposition. It’s a structural reality that every taxpayer must navigate. At AI Tax Consultants, we understand that moving away from traditional methods can feel overwhelming. However, the benefits of moving your tax return to the digital realm far outweigh the nostalgia of paper filing.
The End of Proactive Paper Mailing
First and foremost, it’s important to understand that the CRA will no longer automatically mail paper tax packages to your home. If you’re one of the small percentage of taxpayers who still prefer to file by hand, you’ll now have to take the initiative to order, view or download forms yourself. This change, which goes into full effect for the 2025 tax year filing season, marks a major shift in how the government communicates with citizens. Specifically, starting in January 2026, the traditional package will only be available upon request through the CRA’s automated phone lines or website. As a result, those who wait for the package to arrive in the mail may find themselves missing important deadlines, resulting in unnecessary stress and potential late filing penalties.
The Shrinking Paper Package: Missing Schedules
In addition to the change in delivery, the actual content of the paper package has been significantly reduced. In an effort to streamline digital services, the CRA has removed ten different federal schedules from the 2025 physical income tax package. For example, essential forms such as Schedule 3 for capital gains, Schedule 6 for the Canada Workers’ Benefit, and Schedule 9 for donations and gifts are no longer included in the standard paper set. So, if your financial situation includes more than basic employment income, your paper tax return will be incomplete without additional forms that you must source independently. This added layer of complexity not only makes digital filing faster but also significantly more accurate, as modern software automatically adds all the necessary schedules based on your data.
Speed, Accuracy, and the 8-Day Refund
Additionally, the most compelling reason to go digital this year is the sheer speed of processing. When you file your tax return electronically and combine it with direct deposit, the CRA’s current service standard aims to issue your refund within just eight business days. In contrast, a paper-filed return can take eight weeks or more to process, and that’s assuming there are no errors or postal delays. Additionally, using digital services like “AutoFill My Return” allows the CRA to securely transfer information it already has — such as T4 slips, RRSP contributions, and tuition receipts — directly into your software. This feature greatly reduces the risk of transcription errors, ensuring that your tax return is consistent with government records from the start.
Security and the Rise of Digital Correspondence
Finally, we must address the change in how you receive information from the CRA. Starting in 2025, digital mail has become the default method for all business correspondence and is increasingly becoming the standard for individuals. Using a secure online portal like “My Account,” you gain immediate access to your Notice of Assessment and other important notifications without the risk of sensitive documents being lost or stolen in the mail. As such, accepting digital tax returns is a proactive step toward protecting your personal information. At AI Tax Consultants, we are ready to help you bridge the gap between paper and digital, ensuring that your 2025 filing is efficient, secure, and optimized for the highest possible refund.
The digital transition is here, and being prepared is the best way to avoid the pitfalls of a paper-based system that is slowly being phased out. Contact AI Tax Consultants today to learn how we can help you set up your CRA digital profile and file your most successful Tax Return yet.
(FAQs)
1. Can I still file a paper Tax Return if I don’t have a computer? Yes, you can still file on paper, but the CRA will no longer mail the package to you automatically. You must proactively order the 2025 income tax package by calling 1-855-330-3305 or downloading the forms from the Canada.ca website starting in January 2026.
2. Why are some forms, like Schedule 3, missing from my paper package? As part of the digital transition, the CRA has removed ten federal schedules from the standard paper package, including those for Capital Gains (Schedule 3) and Donations (Schedule 9). If your Tax Return requires these forms, you must request or download them separately, as they are no longer included in the “basic” physical kit.
3. How much faster is a digital refund compared to a paper one? The difference is substantial. When you file your Tax Return digitally and sign up for direct deposit, the CRA aims to issue your refund within 8 business days. In contrast, paper-filed returns can take 8 weeks or longer to process, and are more prone to postal delays and manual entry errors.
