Every year the CRA indexes tax brackets and many credits to inflation, and payroll limits change too. For 2026 there's an extra twist: the lowest federal tax rate is 14% for the full year. Here are the numbers Ontario individuals and small business owners ask us about most.
Federal income tax brackets for 2026
These are the CRA's 2026 federal rates:
- 14% on taxable income up to $58,523
- 20.5% on taxable income over $58,523 up to $117,045
- 26% on taxable income over $117,045 up to $181,440
- 29% on taxable income over $181,440 up to $258,482
- 33% on taxable income over $258,482
The brackets were indexed by 2.0% for 2026. Ontario has its own brackets and rates on top of these. For a quick estimate of your combined tax, try our tax calculator.
Basic personal amount
The federal basic personal amount for 2026 is up to $16,452. You get the full amount if your net income is $181,440 or less. Above that it gradually shrinks, to a minimum of $14,829 once net income reaches $258,482.
Because it's a non-refundable credit calculated at the lowest rate, the full federal basic personal amount is worth about $2,303 in 2026.
Canada Pension Plan (CPP) for 2026
From the CRA's CPP rates and maximums and Service Canada's CPP contributions page:
- Year's maximum pensionable earnings (YMPE): $74,600
- Basic exemption: $3,500
- Rate: 5.95% each for employees and employers, or 11.9% if you're self-employed
- Maximum contribution: $4,230.45 each for employees and employers, or $8,460.90 if you're self-employed
Second additional CPP (CPP2):
- Year's additional maximum pensionable earnings (YAMPE): $85,000
- Rate on earnings between $74,600 and $85,000: 4% each for employees and employers, or 8% if you're self-employed
- Maximum CPP2 contribution: $416 each, or $832 if you're self-employed
A heads-up for 2027: Bill C-30 lowers the base CPP rate from 9.9% to 9.5% combined starting January 1, 2027, so deductions change again next year. Details in our Spring Economic Update summary.
Employment Insurance (EI) for 2026
From the CRA's EI premium rates and maximums:
- Maximum insurable earnings: $68,900
- Employee premium rate: 1.63%
- Maximum employee premium: $1,123.07
- Employer premium: 1.4 times the employee amount, up to $1,572.30 per employee
RRSP, TFSA and FHSA limits
- RRSP dollar limit for 2026: $33,810, or 18% of your 2025 earned income if that's lower, plus any unused room. Your exact room is on your latest notice of assessment and in CRA My Account.
- TFSA annual limit for 2026: $7,000. If you've been 18 or older and a resident of Canada since 2009 and never contributed, your total room in 2026 is $109,000.
- First Home Savings Account: $8,000 a year, up to $40,000 over your lifetime.
Other 2026 amounts worth knowing
- Disability tax credit amount: $10,341, worth up to $1,448 federally (Department of Finance)
- Lifetime Capital Gains Exemption: $1.275 million (Department of Finance)
- Charitable donations: the federal credit is 14% on the first $200 for 2026 and 29% above that, or 33% on amounts that offset income in the top bracket
Key deadlines for your 2026 tax return
- March 1, 2027: RRSP contribution deadline for the 2026 tax year (CRA)
- April 30, 2027: filing and payment deadline for most individuals (CRA important dates)
- June 15, 2027: filing deadline if you or your spouse or common-law partner had self-employment income, though any balance owing is still due April 30
Sources
- Tax rates and income brackets for individuals, Canada Revenue Agency
- CPP contribution rates, maximums and exemptions, Canada Revenue Agency
- EI premium rates and maximums, Canada Revenue Agency
- MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and the YAMPE, Canada Revenue Agency
- First Home Savings Account, Canada Revenue Agency
- Important dates for individuals, Canada Revenue Agency
- Spring Economic Update 2026: Tax measures (Disability Tax Credit amount), Department of Finance Canada
Questions about your own numbers? Book a consultation.