New year, new tax measures: What to expect in 2026

Canada's 2026 tax changes include a reduction of the lowest marginal tax rate from 15% to 14% on the first $58,523 earned, down from $57,375 in 2025. A new refundable personal support worker tax credit worth up to $1,100 (5% of eligible earnings) applies to workers in hospitals, nursing homes, and other regulated health facilities, but excludes British Columbia, Newfoundland and Labrador, and the Northwest Territories. The lifetime capital gains exemption for small business shares and farm properties increases from $1.018 million to $1.25 million, retroactive to June 25, 2024. CPP maximum contributions rise to $4,230.45 for employees (employer match), with a second ceiling of $85,000 (up from $81,200). EI maximum insurable earnings increase to $68,900, raising employee contributions to $1,123.07. TFSA limits remain at $7,000. All federal tax brackets adjust upward by 2% for inflation.