Income Tax Changes For 2025 Canada. The canada revenue agency (cra) adjusts federal tax brackets annually to account for inflation, ensuring a fair taxation system. That’s up from 2024, when the range was $14,256 to $15,705.

This adjustment helps ensure canadians are not pushed into higher tax brackets solely due to inflation. For 2025, income tax brackets are increasing by 2.7% in the new year to prevent higher prices from pushing canadians into higher tax brackets.