The indexing factor for federal tax credits and brackets for 2026 is 2.0%. The following federal tax rates and brackets will be in effect for individuals for the 2026 tax year.

Income level                       Federal tax rate

$16,452 – $58,523                       14.0%

$58,524 – $117,045                      20.5%

$117,046 – $181,440                    26.0%

$181,441 – $258,482                    29.0%

Over $258,482                             33.0%

Federal individual tax credits for 2026 

Tax credit amounts on which individual, non-refundable federal tax credits for 2026 are based, and the actual tax credit claimable, will be as follows:

                                                                   Credit amount          Tax credit

Basic personal amount*                                 $16,452                   $2,303

Spouse or common-law 
partner amount*                                             $16,452                   $2,303

Eligible dependant amount*                           $16,452                   $2,303

Age amount                                                    $9,208                     $1,289

  net income threshold for erosion of 
  age credit                                                      $46,432

Canada employment amount                          $1,501                    $210                       

Disability amount                                             $10,341                  $1,448

Adoption expenses credit                                $19,972                  $2,796

Medical expense tax credit (3% of 
net income ceiling)                                           $2,890

*For taxpayers having net income for the year of more than $258,482, amounts claimable for the basic personal amount, the spousal amount, and the eligible dependant amount for 2026 may differ.

Canada Pension Plan Contributions for 2026 

As of 2024, there are two contribution levels for the Canada Pension Plan. Income amounts and employee contribution percentages for 2026 for each contribution level are as follows.

• First-tier contributions for 2026 are set at 5.95% of pensionable earnings between $3,500 and $74,600. 
• Second-tier contributions for 2026 are set at 4.0% of pensionable earnings between $74,600 and $85,000.

The maximum employee CPP contribution in 2026 for employees making only first-tier contributions (those with pensionable earnings of $74,600 or less) will be $4,230.45. Employees making second-tier contributions will be required to contribute up to an additional $416.00 in contributions for the year.

Employment Insurance Premiums for 2026 

The Employment Insurance premium rate for 2026 is set at 1.63%.

Yearly maximum insurable earnings are increased to $68,900, making the maximum employee premium $1,123.07.

As in previous years, employer premiums are 1.4 times the employee premium. The maximum employer premium for 2026 is therefore $1,572.30.

​Ontario 2026 Individual Income Tax Brackets and Rates 

Individual income tax rates and income brackets for 2026

During the 2026 tax year, the province of Ontario will levy individual income tax using the following income brackets and tax rates.

Tax Rate          Taxable Income Brackets

5.05%                    up to $53,891

9.15%                    $53,892 to $107,785

11.16%                  $107,786 to $150,000

12.16%                  $150,001 to $220,000

13.16%                  over $220,000

For 2026, the province of Ontario levies an individual surtax of 20% of provincial tax payable over $5,818 plus 36% of provincial income tax over $7,446.

Information on Ontario individual income tax brackets, rates, and surtax rates for 2026 can be found on the provincial government website at https://data.ontario.ca/dataset/personal-income-tax-rates-and-credits/resource/77bc9ec1-068a-4bb1-9a5c-05a508eb92a0.

The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.