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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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Trump Vows New Tariffs on Canada, Mexico, and China, Threatening Global Trade

 

U.S. President-elect Donald Trump announced on Monday that he will impose new tariffs on products from Canada, Mexico, and China as part of his strategy to address illegal immigration and drug trafficking, particularly fentanyl. Trump stated that he will sign an executive order on his first day in office to implement a 25% tariff on all products entering the United States from Canada and Mexico, and an additional 10% tariff on goods from China.

Trump's announcement has sparked concerns among economists and trade experts, who warn that such measures could lead to higher prices for American consumers and potential retaliatory actions from the affected countries. The tariffs are expected to impact a wide range of products, including automobiles, electronics, and agricultural goods.

Canadian and Mexican officials have yet to respond to Trump's announcement, but the move is likely to strain trade relations between the three countries. The tariffs could also complicate the implementation of the United States-Mexico-Canada Agreement (USMCA), which was designed to facilitate trade and economic cooperation in North America.

As the January 20th inauguration date approaches, businesses and consumers are bracing for the potential economic fallout from these tariffs.


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