How does the 14% rate change affect my 2026 taxes?

It lowers federal tax on the income that falls in the first bracket. A quick estimate: take the amount of your income in that bracket and multiply by 1%. That number is your federal savings for 2026. Provincial taxes still apply based on your province.

What are the CPP contributions 2026 changes?

CPP ceilings increase in 2026, so employees and employers contribute more if earnings reach the new maximums. Rates apply to earnings up to the ceiling. If your income is below the ceiling, the change may be limited, but year‑to‑date contributions reflect the higher cap.

What is the TFSA contribution limit 2026?

The TFSA contribution limit for 2026 is $7,000. Unused room from prior years carries forward, and withdrawals create new room in the following year. TFSAs suit short‑term goals and long‑term growth because investment income and withdrawals are tax‑free.

What is the RRSP limit 2026 and how should I use it?

CRA increased the RRSP dollar maximum for 2026. Use RRSP contributions if your current marginal tax rate is high, then invest any refund. Contributions made in the first 60 days of 2026 can generally be claimed on your prior tax year. Check your CRA My Account for exact room.

Global Market Insights

Canada Income Tax Brackets January 02: 2026 cut, CPP/EI changes

ByDanny Kontos January 3, 2026January 3, 2026

Income tax brackets Canada shift in 2026 with the first federal rate reduced to 14% starting January 1. Canadians will also see higher CPP and EI ceilings that affect take‑home pay and employer payroll costs. A new TFSA contribution limit 2026 of $7,000 and a higher RRSP limit 2026 guide where we save first. We break down what these changes mean, how much you may keep, and simple steps to adjust your plan today.