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Canada’s 2026 Federal Tax Brackets: The Five Income Ranges After Indexation

Canada’s federal income tax system adjusts each year to keep pace with inflation, and the 2026 tax year reflects another round of indexation. These updates ensure that taxpayers aren’t pushed into higher tax brackets simply because their incomes rise with the cost of living. For 2026, the inflation adjustment increases all bracket thresholds, and the fully implemented lowest tax rate of 14% remains in effect. The Five Federal Tax Brackets for 2026 After applying the annual indexation factor, the federal tax brackets for 2026 are: 2026 Taxable Income Range Federal Tax Rate Up to about $57,000 14% $57,000 – $114,000 20.5% $114,000 – $177,000 26% $177,000 – $252,000 29% Over $252,000 33% These ranges reflect the inflation‑adjusted thresholds used to calculate federal income tax for the year. Why Indexation Matters Indexation prevents “bracket creep,” a situation where taxpayers pay more tax simply because inflation pushes their income into a higher bracket. By adjusting ...
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S&P/TSX Hits New Highs: Oil Surge and U.S. Markets Rally

 


Toronto, Canada witnessed a bullish surge as the S&P/TSX composite index soared nearly 200 points, closing at 21,552.35. The driving force behind this remarkable climb? Energy stocks, fueled by rising oil prices. Meanwhile, across the border, U.S. markets celebrated fresh record highs.

Key Takeaways:

  1. Oil’s Resurgence: The TSX energy index flexed its muscles, rising almost 2%. Oil briefly flirted with US$80 per barrel, a level unseen since early November. Geopolitical tensions and anticipation of potential OPEC cuts contributed to this bullish momentum.

  2. U.S. Market Records:

    • The Dow Jones industrial average gained 90.99 points, closing at 39,087.38.
    • The S&P 500 index surged 40.81 points, reaching 5,137.08.
    • The Nasdaq composite continued its ascent, adding 183.02 points to hit 16,274.94. Artificial intelligence remained the tech sector’s driving force.
    • Dell Technologies stole the spotlight, leaping nearly 32% after impressive earnings.

  3. Interest Rate Expectations:

    • Weaker-than-expected U.S. economic data bolstered expectations for summer interest rate cuts.
    • Fed Governor Christopher Waller hinted at a shift in the central bank’s holdings toward short-term Treasuries.

  4. Market Resilience:

    • Despite mixed economic data, market bulls remain optimistic.
    • Technical and fundamental factors support the rally, but caution is warranted due to elevated valuations and universal optimism.

  5. Earnings Triumph:

    • Fourth-quarter earnings exceeded expectations, with growth nearing 8%.
    • Approximately 76% of S&P 500 firms surprised to the upside, reinforcing confidence in equities.

  6. AI-Driven Rally:

    • Wall Street strategists scramble to keep pace with the stock market’s artificial intelligence frenzy.
    • Five major firms raised their S&P 500 forecasts for 2024.
    • The index’s strong start—up over 7%—follows a remarkable 24% gain in 2023.

  7. Historical Perspective:

    • Consecutive monthly gains signal a promising year ahead.
    • Since 1950, when the index finished higher in both January and February, full-year returns averaged 19.8%—with positive outcomes in 27 out of 28 instances.

In summary, the S&P/TSX’s bullish trajectory, driven by oil and tech, underscores unwavering optimism amid macroeconomic uncertainties. Investors eagerly await further developments in monetary policy and corporate performance.


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