Here’s how much you will be taxed in 2026: Canada Revenue Agency
Several tax changes will be implemented next year and will affect how much you take home after deductions.
The CRA revealed new federal tax brackets adjusted for inflation. The inflation amount used to index tax brackets in 2026 will be two per cent.
The agency incorporates consumer price index (CPI) data to calculate income tax and benefit amounts each year. The 2025 amount was 2.7 per cent, in 2024 it was 4.7 per centand in 2023 it was 6.3 per cent as inflation was higher.
Increases to tax bracket threshold and amounts relating to non-refundable credits will take effect on January 1, 2026.
Benefits like the goods and services tax credit, the Canada child benefit and child disability benefit will take effect on July 1, 2026.
New tax brackets for 2026
The amount of taxes you will pay depends on how much you make each year.
- Income under $58,523 will be taxed at 14 per cent.
- Incomes from $58.523 to $117,045 will be taxed at 20.5 per cent.
- Incomes from $117,045 to $181,440 will be taxed at 26 per cent.
- Incomes from $181,440 to $258,482 will be taxed at 29 per cent.
- Incomes of $258,482 and over will be taxed at 33 per cent.
The 13 provinces and territories have their own tax brackets indexed to inflation.