Canada is preparing to implement new tax reforms

 

 

 

Canada is preparing to implement new tax reforms starting in 2026. These reforms are mainly aimed at providing relief to low- and middle-income earners. At the same time, there will be a slight increase in the share of wages deducted to strengthen pension benefits. Experts say that most of the changes are small and will not affect ordinary people in a big way.

One of the main changes is the reduction in income tax rates. The minimum income tax rate will be reduced from 15 percent to 14 percent. This lower rate will now apply to income up to $ 58,523. This change will save families about $ 750 to $ 840 a year. In addition, a new tax credit will be allowed for personal support workers from 2026 to 2030. Those with an annual income of at least $ 22,000 can claim up to $ 1,100. This applies to those who work in hospitals, nursing homes and other health centers.

The lifetime capital gains exemption limit on the sale of small businesses, farms and fishing properties will be increased to $1.25 million. Contributions to the Canada Pension Plan will increase; employers and employees will have to pay more accordingly. The annual investment limit for the Tax-Free Savings Account (TFSA) will remain at $7,000 in 2026.