Changes to Federal Tax Rates in Canada for 2026

The CRA has released updated federal tax brackets and tax credits for 2026, reflecting a 2.0% indexation based on changes in the Consumer Price Index (CPI).

Updated items include:

• federal tax brackets
• basic personal amounts
• Canada Employment Amount

Good news — these changes are applied automatically, even if you do not file a TD1 form.

Federal tax rates for 2026:

• up to $58,523 — 14%
• $58,523 – $117,045 — 20.5%
• $117,045 – $181,440 — 26%
• $181,440 – $258,482 — 29%
• over $258,482 — 33%

Need help with tax planning or tax return preparation? Contact us, the CTRL TAX team is always here to help.