Slight changes to tax brackets are proposed to keep inflation in check as consumer prices remain high

Canadians could be taking home more money beginning in the new year if proposed federal income tax changes become law.

Legislation working its way through Parliament would see a slight decrease in income taxes the lowest earners pay, going from 14.5% for income below $57,375 in 2025 to 14% on income below $58,523 in 2026.

To get to the effective 14.5% rate this year from the 15% those earners were paying since January, the Liberal government reduced the lowest income tax rate to 14%, which was effective on July 1.

While the 20.5% federal tax rate stays the same, the bracket increases from $57,375 up to $114,750 in 2025 to $58,523 up to $117,045 in 2026.

Workers earning between $114,

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