Most of the big Canadian tax numbers nudged up a little between 2025 and 2026, and one of them, the lowest federal rate, went down. Here they are side by side, so you can see what moved before you work out your paycheque, your RRSP room or your instalments.
What changed from 2025 to 2026?
| Item | 2025 | 2026 |
|---|---|---|
| Federal lowest tax rate | 14.5% (blended for the year) | 14% |
| Federal basic personal amount (maximum) | $16,129 | $16,452 |
| CPP maximum pensionable earnings (YMPE) | $71,300 | $74,600 |
| CPP2 second ceiling (YAMPE) | $81,200 | $85,000 |
| EI maximum insurable earnings | $65,700 | $68,900 |
| EI employee rate | 1.64% | 1.63% |
| RRSP dollar limit | $32,490 | $33,810 |
| Lifetime capital gains exemption | $1,250,000 | $1,275,000 |
| Capital gains inclusion rate | 50% | 50% |
| TFSA annual limit | $7,000 | $7,000 |
2025 2026
Why does your paycheque shrink a little at the top?
Because the ceilings rose, anyone earning above them pays contributions on more income. At the 5.95% CPP rate, the higher YMPE adds about $196 to the maximum yearly CPP contribution, and the higher EI ceiling adds about $46 to the maximum EI premium. CPP2 adds another $20 or so at the top. None of that is a surprise tax, it is just indexing doing its job.
What does the lower first federal rate mean for you?
The lowest bracket rate fell to 14% for 2026. In 2025 it was 15% for the first half of the year and 14% for the second, which works out to 14.5%. On a modest income that is worth a few bucks a month, not a windfall, and it only touches the first slice of taxable income.
How much more RRSP room do you get?
The dollar limit went up by $1,320, from $32,490 to $33,810. Your own limit is still the lesser of that figure and 18% of last year’s earned income, minus pension adjustments, so check your notice of assessment before you top up.
Where can you run your own numbers?
Use the income tax calculator for a full estimate, or open the page with all the 2026 rates and limits at a glance. If you want your upcoming dates instead, try My tax year. These are estimates for information only, so check the CRA before you rely on a figure for a filing.
Can you download these numbers?
Yes. The table is available as JSON and CSV, with the official source for each row. They are for information only, so check the linked page before you rely on a figure.
Where do these figures come from?
The 2026 figures are the ones used across this site and match the Canada Revenue Agency payroll and rates pages. The 2025 column holds the previous year’s published amounts. This is an independent information site, not the CRA or any government body.