Fresh Tax Changes for 2026

Written By Keith McConkey

As we roll into 2026, we have lots of new tax thresholds and benefits here in Canada. Here are a few important ones to keep top of mind:

  • Lower Federal Tax Rates

    • Canada’s lowest federal tax bracket changed from 15% to 14%. 2026 marks the first full year of this to be in effect.

    • Tax Brackets have been adjusted to inflation, with the first bracket of 14% ending with annual income of $58,523

  • Increased Basic Personal Amount

    • The basic personal amount (BPA) will rise to $16,452 for 2026. This can result in around $2,100 of non-refundable tax credits to be earned.

    • Full BPA applies up to income of $181,440. For income above that amount, BPA will gradually reduce to $14,829

  • Retirement Saving Opportunities

    • RRSP contribution limit increases to $33,810, or 18% of your annual income, whichever is smaller.

    • Canada Pension Plan (CPP) maximum contributions will increase with this year’s maximum pensionable earnings (YMPE) to $74,600.

      • CPP1 (Base) - 5.95% contribution up to income of $74,600.

      • CPP2 (Additional) - 4% contribution from income of $74,600 to $85,000.

    • TFSA Annual contribution limit raises by $7,000.

      • Cumulative lifetime limit (if 18 years old since 2009) will be $109,000 for 2026

  • Family Benefits and Credits

    • Canada Child Benefit (CCB) will be adjusted by about 2% for inflation.

    • GST/HST credit will also be adjusted to inflation

      • Increased credits will only begin in July 2026

We know that tax time can be stressful, but that’s why planning ahead can make all the difference. If you’re looking to, don’t forget to top up your RRSP before the March 2, 2026 deadline. Also make sure you file your taxes before the end up April. Filing on time ensures you receive all the credits and benefits your entitled to. If you have any questions, please don’t hesistate to reach out us directly for personlized advice.

Keith McConkey https://www.nxsfinancial.ca