Toronto/CMEDIA: Updated federal income tax brackets reportedly for 2025 have been released by the Canada Revenue Agency (CRA), reflecting adjustments for inflation.
Although federal tax rates remain the same, the income thresholds for each bracket have shifted.
Instead of a person’s entire income being taxed at a single rate, it’s split up into brackets, each with its own rate.
According to the CRA, the indexation increase for 2025 is 2.7 percent, which is lower than 2024’s 4.7 percent increase.
The income tax brackets for the upcoming year are as follows:
Tax bracket of incomes within the $57,375 or less will be taxed at 15 percent;
incomes between the $57,375.01 to $114,750 tax bracket will be taxed at 20.5 percent;
tax bracket for incomes between the $57,375.01 to $114,750 will be taxed at 20.5 percent;
26 percent tax would be levied for tax bracket between the $114,750.01 to 177,882,
incomes between the $177,882.01 to 253,414 tax bracket will be taxed at 29 percent;
and incomes above $253,414.01 will be taxed at 33 percent.
