Changes could be on the way for federal income tax brackets next year, according to the Canada Revenue Agency.

If the legislation working its way through Parliament becomes law, the proposed changes would mean Canada’s lowest earners may pay slightly less income tax starting in 2026.

Some income tax cuts were introduced prior to the summer of 2025 by the federal government, and the new changes would essentially apply the same cut for the entire tax year.

Prime Minister Mark Carney’s so-called “ middle-class tax cut ” introduced in the spring proposed dropping the federal income tax from 15 per cent to 14 per cent for the lowest tax bracket.

In 2025, that lowest bracket covered the first $57,375 of taxable income.

Starting in 2026, that will adjust to reflect the indexed infla

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