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Tax Simplified

Key numbers — 2026

Every limit, threshold, and rate for the current tax year. Source: CRA. Updated Oct 2026

Federal income tax brackets

Taxable income Rate Bracket rate (credit rate 14.00%)
$1 – $58,523 14.00% 14.00%
$58,524 – $117,045 20.50% 20.50%
$117,046 – $181,440 26.00% 26.00%
$181,441 – $258,482 29.00% 29.00%
Over $258,482 33.00% 33.00%

Federal BPA: $16,452 (phases to $14,829 above $181,440). Canada Employment Amount: $1,501.

CPP and QPP

Parameter CPP (outside QC) QPP (Quebec)
Year's Maximum Pensionable Earnings (YMPE) $74,600 $74,600
Year's Additional Maximum Pensionable Earnings (YAMPE) $85,000 $85,000
Basic exemption $3,500 $3,500
Employee contribution rate 5.95% 6.30%
Base rate (earns credit) 4.95% 5.30%
CPP2 / QPP2 rate (YMPE → YAMPE) 4.00% 4.00%
Max employee contribution (CPP1 only) $4,230 $4,479

Employment Insurance (EI) and QPIP

Parameter Value
Maximum insurable earnings $68,900
Employee premium rate (outside QC) 1.63%
Employee premium rate (Quebec) 1.30%
Max EI premium (outside QC) $1,123
QPIP — maximum insurable earnings $103,000
QPIP — employee rate 0.43%
QPIP — self-employed rate 0.60%

RRSP, TFSA, and FHSA limits

Account Limit Amount
RRSP Annual dollar limit $33,810
RRSP 18% of prior year earned income 18% of earned income
TFSA Annual contribution limit $7,000
TFSA Cumulative room since 2009 (if eligible every year) $109,000
FHSA Annual contribution limit $8,000
FHSA Lifetime limit $40,000

RRSP limit is the lesser of the dollar limit and 18% of prior year earned income. TFSA cumulative room assumes the taxpayer was 18+ and Canadian resident for every year since 2009.

Other key numbers

Item Amount Notes
OAS clawback threshold $95,323 Net income above this reduces OAS by 15 cents per dollar
Lifetime capital gains exemption (LCGE) $1,275,000 On qualifying small business shares, farming, and fishing property
Capital gains inclusion rate 50% 50% of gain included in income; proposed 2/3 rate was cancelled March 2025
Eligible dividend gross-up 38% Add 38% to actual eligible dividend to get taxable amount
Non-eligible dividend gross-up 15% Add 15% to actual non-eligible dividend to get taxable amount
Federal dividend tax credit — eligible 15.02% % of grossed-up eligible dividend
Federal dividend tax credit — non-eligible 9.03% % of grossed-up non-eligible dividend

Source: CRA T4032 Payroll Deductions Tables and CRA Tax rates for individuals. All numbers are for the 2026 tax year. Last reviewed July 2026.