The Government of Canada has tabled legislation proposing to reduce the lowest income tax rate effective July 1, 2025. For more information: Government tables a Motion to bring down costs for Canadians.

This page lists the types of income that are not taxable and you do not have to report on your return.

Some common refundable tax credits ... and Canada Training Credit. Tax deductions don’t work as many people suppose (or hope). Instead of reducing the amount of taxes you need to pay, a tax deduction actually reduces the income you are taxed on, which can put you in a lower tax bracket and thus reduce the amount of taxes you will owe. Even if it doesn't move you into a lower top tax bracket, that amount of income is tax-free for that year, ...

Individuals resident in Canada for only part of a year are taxable in Canada on worldwide income only for the period during which they were resident. Personal tax credits, miscellaneous tax credits, and the dividend tax credit are subtracted ...

In other words, a tax bracket has a tax rate applicable to that set range of income. These rates apply to taxable income, which is your total income from line 15000, less any deductions you may be entitled to. The amount of tax due depends on your income. The more you earn, the higher your ...

Estimate your 2025-26 Canada taxes with our federal Income Tax Calculator. Instantly see your refund, after-tax income, and latest provincial tax brackets.

December 8, 2025 - So depending on where you live, your tax-free income limit ranges from $11,188 to $22,769. If you earn just over your region's BPA, don't panic — you'll still get to subtract the BPA amount from your income and only pay tax on the portion ...

On December 9, 2019, the Government ... the Income Tax Act to increase the basic personal amount to $15,000 by 2023. The increase would be phased in starting in 2020. Employers and payers who need time to implement these changes should refer to Question 7. ... The basic personal amount (BPA) ...

TaxTips.ca - Many types of income are not taxable, such as GIS, Canada Child Benefit, GST/HST credit, most gifts and inheritances, and more.

May 6, 2025 - Each province has its own tax-free income limits and tax brackets, so the cheapest province for you (in terms of income taxes payable) will depend on how much taxable income you earn annually and what tax credits you might be eligible for. ... Canada’s system is set up so that you pay income tax based on the province you live in, not where you work.

August 28, 2025 - This is also how most provincial tax brackets work as well—we’ll get to those below. In 2025, the lowest federal tax bracket applies to the first $57,375 of your earnings. So, for example, if you made $50,000 from all sources of taxable ...

The basic personal amount is a non-refundable tax credit that all Canadians can claim. Anyone generating an income at or below that amount will pay nothing in tax; anyone making more than that amount will get a partial reduction on their taxes based on the BPA figure.

Income Tax Regulations (C.R.C., c.

If you are a non-resident, you ... will not be taxed, but it will affect how many credits you can claim. You can earn up to $15,705 tax-free if you earned 90% or more of your income in Canada....

Estimate your income taxes with our free Canada income tax calculator. See your tax bracket, marginal and average tax rates, payroll tax deductions, tax refunds, and taxes owed.

October 5, 2025 - ... Effective July 1, 2025, the lowest federal income tax rate decreases from 15% to 14%, resulting in a blended rate of 14.5% for the year. The annual contribution limit for Tax-Free Savings Accounts (TFSAs) rises to $7,000 in 2025, allowing ...

(1) The personal amounts for 2026 and 2025 are increased federally and for Yukon: ... For incomes above this threshold, the additional amount of $1,623 is reduced until it becomes zero at net income of $258,482.

May 13, 2025 - Canada has a graduated income tax system, so the amount you pay depends on how much you earn. ... Many or all of the products on this page are from partners who compensate us when you click to or take an action on their website, but this does not influence our evaluations or ratings.

November 26, 2024 - There are going to be some changes to Canada's tax brackets as we move into 2023. These changes could impact how you’re taxed when you file your 2023 income tax returns next year.

October 8, 2025 - Quebec administers its own personal income tax system, and therefore is free to determine its own definition of taxable income.