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Between 2025 and 2026 most Canadian tax numbers rose a little, and the lowest federal rate fell from a blended 14.5% to 14%. The RRSP dollar limit went from $32,490 to $33,810, the CPP earnings ceiling (YMPE) from $71,300 to $74,600, and the EI ceiling from $65,700 to $68,900. The table below puts the two years side by side.
What changed from 2025 to 2026?
The table compares ten federal tax numbers for 2025 and 2026. The RRSP, YMPE, YAMPE and TFSA rows match the CRA’s table of RRSP, DPSP and TFSA limits and the YMPE, and the rest follow the CRA payroll and rates pages listed at the bottom.
| Item | 2025 | 2026 |
|---|---|---|
| Federal lowest tax rate | 14.5% (blended for the year) | 14% |
| Federal basic personal amount (maximum) | $16,129 | $16,452 |
| CPP maximum pensionable earnings (YMPE) | $71,300 | $74,600 |
| CPP2 second ceiling (YAMPE) | $81,200 | $85,000 |
| EI maximum insurable earnings | $65,700 | $68,900 |
| EI employee rate | 1.64% | 1.63% |
| RRSP dollar limit | $32,490 | $33,810 |
| Lifetime capital gains exemption | $1,250,000 | about $1,275,000 (indexed, not yet on the CRA page) |
| Capital gains inclusion rate | 50% | 50% |
| TFSA annual limit | $7,000 | $7,000 |
2025 2026
How much more do high earners pay in CPP and EI?
Anyone earning above the 2026 ceilings pays contributions on more income than in 2025. At the 5.95% CPP rate, the higher YMPE adds about $196 to the maximum yearly CPP contribution, and the higher EI ceiling adds about $46 to the maximum EI premium. CPP2 adds another $20 or so at the top. These increases come from indexing the ceilings, not from a new tax.
What does the lower first federal rate mean for you?
The lowest federal bracket rate fell to 14% for 2026. In 2025 it was 15% for the first half of the year and 14% for the second, which works out to 14.5%. On a modest income that is worth a few bucks a month, and it only touches the first slice of taxable income.
How much more RRSP room do you get?
The RRSP dollar limit went up by $1,320, from $32,490 to $33,810. Your own limit is still the lesser of that figure and 18% of last year’s earned income, minus pension adjustments, so check your notice of assessment before you top up. The RRSP calculator shows what a contribution saves you.
Which numbers stayed the same?
The capital gains inclusion rate is 50% in both years, and the TFSA annual limit is $7,000 in both years. For what is already known about next year, see the 2026 vs 2027 comparison, and for the short list in plain words see what changed in Canadian taxes in 2026.
Where can you run your own numbers?
Use the income tax calculator for a full estimate, or open the page with all the 2026 rates and limits at a glance. If you want your upcoming dates instead, try My tax year. The CPP maximum page explains the contribution ceilings in more detail. These are estimates for information only, so check the CRA before you rely on a figure for a filing.
Can you download these numbers?
Yes. The table is available as JSON and CSV, with the official source for each row. They are for information only, so check the linked page before you rely on a figure.
Where do these figures come from?
The 2026 figures are the ones used across this site and match the Canada Revenue Agency payroll and rates pages. The 2025 column holds the previous year’s published amounts. This is an independent information site: we provide no services, we do not represent the CRA or any organization, we collect information from open sources, and we do not guarantee it is accurate.
Frequently asked questions
Did the lowest federal tax rate change from 2025 to 2026?
Yes. The lowest federal rate is 14% for 2026. For 2025 it was 15% for the first half of the year and 14% for the second, which works out to a blended 14.5%.
How much did the RRSP limit go up in 2026?
The RRSP dollar limit rose by $1,320, from $32,490 for 2025 to $33,810 for 2026. Your own limit is the lesser of that figure and 18% of last year's earned income, minus pension adjustments, so check your notice of assessment.
What are the CPP and EI earnings ceilings for 2026?
For 2026 the CPP maximum pensionable earnings (YMPE) are $74,600, up from $71,300, and the CPP2 ceiling is $85,000, up from $81,200. EI maximum insurable earnings are $68,900, up from $65,700, at a rate of 1.63%.
Did the TFSA limit or the capital gains inclusion rate change?
No. The TFSA annual limit is $7,000 in both 2025 and 2026, and the capital gains inclusion rate is 50% in both years.
Can I download the 2025 and 2026 tax numbers?
Yes. The table is available as JSON and CSV files, with the official source for each row. They are for information only, so check the linked source before you rely on a figure for a filing.