As we move through 2026, the Canada Revenue Agency (CRA) has rolled out a number of meaningful changes affecting individual taxpayers, families, business owners, and retirees alike. At CMP Accounting, we’ve broken down the key updates so you can plan smarter and avoid surprises at filing time.
1. Lower Federal Income Tax Rate on the First Bracket
The lowest federal income tax rate drops from 15% to 14%, applying to the first $58,523 of taxable income. For most Canadians, this translates to over $400 in annual savings.
2. Basic Personal Amount
The Basic Personal Amount rises to $16,452 in 2026, generating a non-refundable federal credit worth approximately $2,303 for most Canadians.
3. RRSP Contribution Limit
The RRSP dollar limit rises to $33,810, up from $32,490 in 2025. Your actual room is the lesser of this limit or 18% of your 2025 earned income plus any carryforward.
4. TFSA Limit Holds at $7,000
The TFSA annual limit remains at $7,000 for 2026. Cumulative lifetime room is now $109,000 for those eligible since 2009.
5. CPP Updates
The Year’s Maximum Pensionable Earnings rises to $74,600. The combined CPP contribution rate is 11.9%, with a maximum base contribution of $4,230.45. CPP2 applies to earnings between $74,600 and $85,000 at 4%.
6. EI Premiums
The employee EI rate is 1.64% on maximum insurable earnings of $68,900. Maximum weekly benefit is $729.
7. OAS Clawback Threshold
The OAS recovery tax kicks in at $95,353 of net income in 2026.
8. Capital Gains Inclusion Rate
Effective January 1, 2026, the inclusion rate increases to two-thirds for corporations and trusts, and for individuals on gains above $250,000 annually.
9. CRA Digital Updates
Multi-Factor Authentication is now mandatory for CRA My Account. Gig economy platforms now report creator earnings directly to the CRA.
Quick Planning Checklist
- ✅ Confirm RRSP room on your 2024 Notice of Assessment
- ✅ Max out your TFSA — $7,000 new room as of January 1, 2026
- ✅ Set up MFA on CRA My Account
- ✅ Review capital gains planning if you hold investments inside a corporation
Have questions? Contact CMP Accounting — we’re here to help.