![[Canada] Significant tax changes for 2026](http://gpa.net/cdn/shop/articles/bigstock-Parliament-Hill-In-Ottawa--O-214253950_1_9e9863d5-bcbe-4f6e-ab7d-c5fafb54be2e_1200x.jpg?v=1766163092)
The Canadian Taxpayers Federation (CTF) has released its annual New Year’s Tax Changes report to highlight significant tax changes coming in 2026, Taxpayer reports.
Franco Terrazzano - CTF Federal Director - said, “There’s some good news and bad news for taxpayers in 2026.
“The federal government cut income taxes, but it’s hiking payroll taxes. The government cancelled the consumer carbon tax, but it’s hammering Canadian businesses with a higher industrial carbon tax.”
The federal government will reportedly increase the maximum mandatory Canada Pension Plan (CPP) and Employment Insurance (EI) contributions in 2026. These payroll tax increases will cost workers a maximum of $262 more next year.
For workers earning $85,000 or more, federal payroll taxes (CPP and EI tax) will rise to $5,770 in 2026. Their employers will be required to pay $6,219.
The government has reportedly cut the lowest income tax rate from 15 to 14 per cent, saving the average taxpayer $190, according to the Parliamentary Budget Officer.
“Canadians pay too much tax because the government wastes too much money,” Mr Terrazzano said. “Canadians are overtaxed and need serious tax cuts to help make life more affordable and our economy more competitive.
“Prime Minister Mark Carney needs to significantly cut spending, provide major tax relief and scrap all carbon taxes.”
Source: Taxpayer
(Quotes via original reporting)
The Canadian Taxpayers Federation (CTF) has released its annual New Year’s Tax Changes report to highlight significant tax changes coming in 2026, Taxpayer reports.
Franco Terrazzano - CTF Federal Director - said, “There’s some good news and bad news for taxpayers in 2026.
“The federal government cut income taxes, but it’s hiking payroll taxes. The government cancelled the consumer carbon tax, but it’s hammering Canadian businesses with a higher industrial carbon tax.”
The federal government will reportedly increase the maximum mandatory Canada Pension Plan (CPP) and Employment Insurance (EI) contributions in 2026. These payroll tax increases will cost workers a maximum of $262 more next year.
For workers earning $85,000 or more, federal payroll taxes (CPP and EI tax) will rise to $5,770 in 2026. Their employers will be required to pay $6,219.
The government has reportedly cut the lowest income tax rate from 15 to 14 per cent, saving the average taxpayer $190, according to the Parliamentary Budget Officer.
“Canadians pay too much tax because the government wastes too much money,” Mr Terrazzano said. “Canadians are overtaxed and need serious tax cuts to help make life more affordable and our economy more competitive.
“Prime Minister Mark Carney needs to significantly cut spending, provide major tax relief and scrap all carbon taxes.”
Source: Taxpayer
(Quotes via original reporting)
