New Tax Brackets 2025 Canada

New Tax Brackets 2025 Canada. The tax brackets for 2025 are based on taxable income thresholds, with corresponding marginal tax rates applied progressively. Here’s a detailed breakdown of the canadian tax changes for 2025 and how they may affect you:

Each year, most income tax and benefit amounts are indexed to inflation. While federal tax rates remain unchanged, the income thresholds for each bracket have shifted to account for a 2.7% indexation increase, a decrease from the 4.7% adjustment seen in 2024.