Canadian Tax Changes 2026
A side-by-side comparison of every key federal tax figure that changed between 2025 and 2026 — income tax brackets, the Basic Personal Amount, CPP, EI, RRSP, and TFSA limits.
Federal Income Tax Brackets
Federal brackets are indexed to inflation each year. All five brackets shifted upward for 2026.
| Rate | 2025 Range | 2026 Range |
|---|---|---|
| 14% | $0 – $57,375 | $0 – $58,523 |
| 20.5% | $57,375 – $114,750 | $58,523 – $117,045 |
| 26% | $114,750 – $177,882 | $117,045 – $181,440 |
| 29% | $177,882 – $253,414 | $181,440 – $258,482 |
| 33% | Over $253,414 | Over $258,482 |
Basic Personal Amount
The Basic Personal Amount (BPA) is a non-refundable tax credit applied at the lowest federal rate (15%). The 2026 BPA increased from $16,129 to $16,452 — a $323 increase, saving eligible taxpayers up to $48 in federal tax.
| Item | 2025 | 2026 |
|---|---|---|
| Basic Personal Amount | $16,129 | $16,452 |
Canada Pension Plan (CPP)
CPP contributions are split between a base plan (CPP1) and a second additional component (CPP2) on earnings above the YMPE. The Year's Maximum Pensionable Earnings rose for 2026 while the employee contribution rate held steady.
| Item | 2025 | 2026 |
|---|---|---|
| Employee Contribution Rate (CPP1) | 5.95% | 5.95% |
| Year's Maximum Pensionable Earnings (YMPE) | $71,300 | $74,600 |
| CPP2 Employee Rate | 4% | 4% |
| CPP2 Maximum Earnings Ceiling | $81,200 | $85,000 |
Employment Insurance (EI)
EI premiums are calculated on insurable earnings up to the annual maximum. Quebec residents pay a lower rate because the province administers its own parental insurance program (QPIP).
| Item | 2025 | 2026 |
|---|---|---|
| Employee Premium Rate | 1.64% | 1.63% |
| Quebec Employee Rate | 1.31% | 1.3% |
| Maximum Insurable Earnings | $65,700 | $68,900 |
RRSP & TFSA Limits
The RRSP deduction limit increased for 2026, while the TFSA annual limit remained unchanged at $7,000.
| Item | 2025 | 2026 |
|---|---|---|
| RRSP Maximum Contribution | $32,490 | $33,810 |
| TFSA Annual Limit | $7,000 | $7,000 |
See how these changes affect your pay
Use our calculators to see your 2026 federal and provincial tax, updated for the new brackets and rates.