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- 10.01.2026
Canada’s Federal Income Tax Brackets Redefined for 2026: What You Need to Know
Canada’s federal income tax brackets are changing in 2026
The Canada Revenue Agency (CRA) is spearheading prospective changes to federal income tax brackets.
The big picture: There’s a new legislation underway offering a reduction in income tax for the lowest earners starting from 2026.
Ahead of these changes, tax cuts are set to be introduced before the summer of 2025, over the entire tax year.
In a bid to support the middle class, Prime Minister Mark Carney proposes a ‘middle-class tax cut’, aiming to reduce federal income tax from 15 per cent to 14 per cent for the lowest tax bracket.
In 2025, the monetary range covered by the lowest tax bracket is $57,375.
Starting 2026, the monetary range for the lowest tax bracket will be adjusted according to the inflation rate.
The lowest income tax bracket in 2026 will cover the first $58,523 of income.
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Explore a series of informative videos providing insights into money-related topics.
Learn about the second tax bracket in both 2025 and 2026 that comes with certain income ranges and tax percentage.
Gain insights into the third-level tax bracket intended for the years 2025 and 2026, highlighting the income range and tax percentage.
The fourth-level bracket of income tax for 2025 and 2026 unpacks years, income range, and tax percentage.
Discover the highest tax wage bracket for 2025 and 2026, highlighting the key points such as years, income range, and tax percentage.
Understanding how income is reported and tax computed yearly clarifies the tax rates for years 2025 and 2026.
Meet Ryan Minor, director of tax at Chartered Professional Accountants Canada, who elucidates why inflation is used as a measure for tax computation.
Minor continues his discussion on the impact of inflation on tax bracket expansion.
Here’s a look at the lowest income level known as Basic Personal Amount (BPA), explaining its exclusion from federal income taxes.
Earn some knowledge on how the BPA has been changed for the years 2025 and 2026, focusing on the BPA values.
