Canadians' federal income tax bracket has changed slightly this year, according to the Canada Revenue Agency (CRA).The CRA revealed the federal tax brackets for 2025, adjusted for inflation. While federal tax rates are the same, the income thresholds for each bracket have shifted.In 2025, the indexation increase will be 2.7 per cent, which is lower than the 4.7 per cent bump in 2024, according to the agency.This is how much income tax you'll have to pay next year based on your bracket:Less than or up to $57,375 — 15 per centBetween $57,375 and $114,750 — 20.5 per centBetween $114,750 and $177,882 — 26 per centBetween $177,882 and $253,414 — 29 per cent$253,414 and over — 33 per centThis comes after the federal government proposed changes to the capital gains tax last June that would increase the inclusion rate from one-half to two-thirds for any Canadian or corporation that makes over $250,000 per year in capital gains. It would only impact a small port...
This article focuses on the changes to Canada's federal income tax brackets for 2025. Although the tax rates remain the same, the income thresholds for each bracket have increased by 2.7% due to inflation.
The article also briefly discusses the proposed changes to the capital gains tax which were met with resistance and remain pending. Finally, it highlights that several government benefits, including the Canada Child Benefit, are increasing in 2025.
In essence, the primary message is to inform Canadians about the adjusted income tax brackets for 2025 and the related implications.
This article focuses on the changes to Canada's federal income tax brackets for 2025. Although the tax rates remain the same, the income thresholds for each bracket have increased by 2.7% due to inflation. The article also briefly discusses the proposed changes to the capital gains tax which were met with resistance and remain pending. Finally, it highlights that several government benefits, including the Canada Child Benefit, are increasing in 2025. In essence, the primary message is to inform Canadians about the adjusted income tax brackets for 2025 and the related implications.
