2025 Income Tax Brackets Canada. The federal tax brackets for 2025 are increasing by 2.7% (compared to 4.7% in 2024 and 6.3% in 2023). For 2025, the cra tax brackets are increasing by 2.7%.

The federal income tax brackets for 2025 have been indexed to an inflation rate of 2.7%. Canada revenue agency (cra) uses the inflation rate, as reported through the consumer price index (cpi), to adjust personal income tax and benefit amounts each year.