New for 2026

 For Individuals and Families

• Federal Income Tax Rate Reduction: The lowest federal personal income tax rate decreased from 15% to 14% effective July 1, 2025. This results in a blended rate of 14.5% for the entire 2025 tax year.
• Increased Basic Personal Amount (BPA): The maximum tax-free income amount (BPA) for 2025 is $16,129 for individuals with a net income up to $177,882.
• Indexed Tax Brackets: All federal tax bracket thresholds have been indexed to inflation using a 2.7% factor for 2025.
• First-Time Homebuyer GST/HST Relief: For first-time buyers, the Goods and Services Tax (GST) will be eliminated on newly built homes priced up to $1 million and reduced for homes between $1 million and $1.5 million, if legislation is passed.  Bill C-4, which contains this new rebate, passed all stages in the House of Commons on December 11, 2025, but the Senate adjourned for its winter recess before passing it. The Senate is expected to return in February 2026. Once passed and granted Royal Assent, the rebate would apply to purchase agreements entered into on or after May 27, 2025.
• Canada Worker's Benefit (CWB): The maximum basic amount has increased, and income thresholds have been raised, allowing more low-to-moderate-income workers to qualify for this refundable tax credit.
• Canada Disability Benefit (CDB): The CDB launched in 2025, providing up to $2,400 to working-aged Canadians with disabilities who qualify for the Disability Tax Credit.

For Savings and Retirement

• RRSP Contribution Limit: The maximum Registered Retirement Savings Plan (RRSP) contribution limit for the 2025 tax year is $32,490.
• TFSA Contribution Room: The Tax-Free Savings Account (TFSA) annual contribution room for 2025 remains unchanged at $7,000. The cumulative limit for those eligible since 2009 is now $102,000.
• CPP Contributions: The Year's Maximum Pensionable Earnings (YMPE) increased to $71,300 for 2025, meaning maximum employee and employer contributions are higher, though the rate remains 5.95%. A second additional CPP contribution (CPP2) on earnings between $71,300 and $81,200 has also been introduced. 

Administrative and Business Changes

• CRA Mailing Changes: The CRA is no longer proactively mailing physical income tax packages to paper filers.
• Changes to Business Filings: Starting January 2025, changes to electronic filing of information returns are in effect, including limiting submissions to one return type.
• Represent a Client Changes.  Tax preparers can no longer request access to a client's CRA "My Account" through their software. They must request authorization online through their Represent a Client account or individuals may login to authorize them directly. Existing CRA authorizations will not be affected.