Tax Brackets 2025 Vs 2025 Canada. Each year, the cra indexes the federal tax brackets to inflation based on consumer price index data from statistics canada. Federal tax brackets are ranges of income that are taxed at progressively higher rates.
In 2025, adjustments to canada’s federal income tax brackets offer some relief by shifting income thresholds upwards to account for inflation and economic changes. For 2025, alberta tax brackets and personal tax credit amounts will increase by 2%, reflecting an indexation factor of 1.02.