2025 Tax Brackets Canada. The inflation rate used to index 2025 tax brackets and amounts will be 2.7%—just over half the 4.7% in effect in 2024. These changes reflect inflation adjustments and policy updates, impacting tax brackets,.
As part of the annual inflation adjustment, the federal income tax brackets for 2025 will be indexed to the 2.7% inflation rate. Canadians’ federal income tax bracket will change slightly next year, according to the canada revenue agency (cra).