By Evelyn Jacks, RWM, MFA, MFA-P, FDFS on August 10, 2026 Estimated reading time: 6 minutes

Ways to experience tax freedom

By Evelyn Jacks, RWM, MFA, MFA-P, FDFS on August 10, 2026 Estimated reading time: 6 minutes

From lower federal tax rates to new tax credits and homebuyer incentives, here are the key 2026 tax changes Canadians should know.

One of the freedoms we get to enjoy as Canadians is tax freedom, which came on June 9 this year. You are now officially working for yourself and your family, and, as we celebrate our life in Canada, there could be future tax risks and rewards just around the corner.

Aside from collecting taxes, the CRA administers the government’s economic, social, and income redistribution goals. That’s complex for everyone. People are motivated to file to get their tax refunds, but even people with no income should file a tax return to collect refundable tax credits they may be eligible for.  

Income-testing is required, so it’s critical to file your tax return on time. It’s also a painful miss if you owe money and are late to file, as you’ll have to contend with expensive penalties and interest compounding daily at high rates.

Even if you file on time, it can be difficult to get reliable information from the CRA in preparation for a future tax audit. Increasingly, this has involved unreasonably long waits, frustrating chat bot conversations, and wrong answers to important questions. This also means taxpayers don’t always understand their rights to new (and potentially wealth-producing) tax changes. So, let’s review some of the more important ones for 2026.

Tax brackets and rates

From a federal government point of view, indexing (this year at 2%) will continue to bring marginal tax rates downward for those whose incomes are not keeping pace with inflation. For others, marginal tax rates could rise if the income bumps into the next federal tax bracket (see chart below). 

The lowest federal tax rate has been reduced to 14% for the full year for everyone. That said, it may not be noticeable as there was an increase in Canada Pension Plan (CPP) premiums.........

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