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Canada Cuts Tax Rate to 14% Amid Inflation Adjustments

12/28/2025

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Summary

Story summary

The Canada Revenue Agency (CRA) reports that the lowest tax rate falls to 14% from 15% as brackets adjust for 2% inflation, potentially saving up to $420 per person.
CRA confirms for 2026 that federal income tax rates are unchanged, while brackets are adjusted accordingly.
The tax-free savings account limit remains at $7,000 while the registered retirement savings plan limit rises to $33,810.

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Story summary

The Canada Revenue Agency (CRA) reports that the lowest tax rate falls to 14% from 15% as brackets adjust for 2% inflation, potentially saving up to $420 per person.
CRA confirms for 2026 that federal income tax rates are unchanged, while brackets are adjusted accordingly.
The tax-free savings account limit remains at $7,000 while the registered retirement savings plan limit rises to $33,810.