Tax Brackets 2025 Vs 2025 Canada. For 2025, all five federal income tax brackets have been indexed to inflation using the 2.7 per cent rate. These are also known as ‘tax brackets’ and are different for federal, provincial and/or territorial income tax.

Moving towards 2025 means that individuals and businesses who will file taxes need to understand tax brackets in canada. The canada revenue agency (cra) adjusts federal tax brackets annually to account for inflation, ensuring a fair taxation system.