FEDERAL INDIVIDUAL TAX RATES AND BRACKETS
The indexing factor for federal tax credits and brackets for 2026 is 2.0%. The following federal tax rates and brackets will be in effect for individuals for the 2026 tax year.
Income Level | Federal Tax Rate |
$16,452 – $58,523 | 14.0% |
$58,524 – $117,045 | 20.5% |
$117,046 – $181,440 | 26.0% |
$181,441 – $258,482 | 29.0% |
Over $258,482 | 33.0% |
FEDERAL INDIVIDUAL TAX CREDITS
Tax credit amounts on which individual, non-refundable federal tax credits for 2026 are based, and the actual tax credit claimable, will be as follows:
| Credit Amount | Tax Credit |
Basic personal amount* | $16,452 | $2,303 |
Spouse or common-law partner amount* | $16,452 | $2,303 |
Eligible dependant amount* | $16,452 | $2,303 |
Age amount | $9,208 | $1,289 |
net income threshold for erosion of age credit | $46,432 |
|
Canada employment amount | $1,501 | $210 |
Disability amount | $10,341 | $1,448 |
Adoption expenses credit | $19,972 | $2,796 |
Medical expense tax credit (3% of net income ceiling) | $2,890 |
|
*For taxpayers having net income for the year of more than $258,482, amounts claimable for the basic personal amount, the spousal amount, and the eligible dependant amount for 2026 may differ.
CANADA PENSION PLAN CONTRIBUTIONS
As of 2024, there are two contribution levels for the Canada Pension Plan. Income amounts and employee contribution percentages for 2026 for each contribution level are as follows.
- First-tier contributions for 2026 are set at 5.95% of pensionable earnings between $3,500 and $74,600.
- Second-tier contributions for 2026 are set at 4.0% of pensionable earnings between $74,600 and $85,000.
The maximum employee CPP contribution in 2026 for employees making only first-tier contributions (those with pensionable earnings of $74,600 or less) will be $4,230.45. Employees making second-tier contributions will be required to contribute up to an additional $416.00 in contributions for the year.
EMPLOYMENT INSURANCE PREMIUMS
The Employment Insurance premium rate for 2026 is set at 1.63%.
Yearly maximum insurable earnings are increased to $68,900, making the maximum employee premium $1,123.07.
As in previous years, employer premiums are 1.4 times the employee premium. The maximum employer premium for 2026 is therefore $1,572.30.
If you would like help with dealing with the CRA or would like to know more about taxable benefits, please feel free to call us at (905) 305-9722 or email us at info@eigenmachtcrackower.com and we will help you out!
