Canada 2025 and 2024 Tax Rates & Tax Brackets

Income Tax Act s. 117, 117.1, 121

The Federal tax brackets and personal tax credit amounts are increased for 2025 by an indexation factor of 1.027 (a 2.7% increase).

The 2024 Federal Budget proposed an increase in the capital gains inclusion rate to 66 2/3% for the portion of gains realized after June 24, 2024 in excess of $250,000, for an individual. We've added an extra column below, to show the marginal tax rate for those gains. The inclusion rate is still 50% for the portion of gains up to $250,000 after June 24, 2024. As of November 15, 2024, a Notice of Ways and Means Motion (NWMM) has been tabled in Parliament, but not a bill. However, CRA has indicated that they are proceeding with implementation of this change.

See Indexation of the Personal Income Tax System for how the indexation factors are calculated, and for the notice from CRA that they are administering the proposed capital gains inclusion rate legislation.

The federal indexation factors, tax brackets and tax rates for 2025 have been confirmed to Canada Revenue Agency (CRA) information. See Indexation adjustment for personal income tax and benefit amounts on the CRA website, which seems to have an error for the first tax bracket.

In order to determine the total tax rate paid in your province or territory, see the combined marginal tax rates for your province or territory. If you are not a resident of Canada, see Who Pays Tax in Canada and on What Income?

Tax Tip: read the article Understanding the Tables of Personal Income Tax Rates, especially if you are trying to compare the rates below to the marginal tax rates in the Basic Tax Calculator or the Detailed Tax Calculators.

TaxTips.ca - Canadian Tax Rates - Federal
2025 Taxable Income(1)	Canada 2025 Marginal Tax Rates					2024 Taxable Income(1)	Canada 2024 Marginal Tax Rates
	Other Income	Capital Gains		Canadian Dividends			Other Income	All Capital Gains		Canadian Dividends
	Other Income	First $250K	Excess Over $250K	Eligible	Non-Eligible		Other Income	All Pre- Jun 25	>$250K Post- Jun 24	Eligible	Non-Eligible
first $57,375	15.00%	7.50%	10.00%	-0.03%	6.87%	first $55,867	15.00%	7.50%	10.00%	-0.03%	6.87%
over $57,375 up to $114,750	20.50%	10.25%	13.67%	7.56%	13.19%	over $55,867 up to $111,733	20.50%	10.25%	13.67%	7.56%	13.19%
over $114,750 up to $177,882	26.00%	13.00%	17.33%	15.15%	19.52%	over $111,733 up to $173,205	26.00%	13.00%	17.33%	15.15%	19.52%
over $177,882 up to $253,414	29.32%	14.66%	19.55%	19.73%	23.34%	over $173,205 up to $246,752	29.32%	14.66%	19.55%	19.73%	23.34%
over $253,414	33.00%	16.50%	22.00%	24.81%	27.57%	over $246,752	33.00%	16.50%	22.00%	24.81%	27.57%
Marginal tax rate for dividends is a % of actual dividends received (not grossed-up taxable amount). Marginal tax rate for capital gains is a % of total capital gains (not taxable capital gains). Gross-up rate for eligible dividends is 38%, and for non-eligible dividends is 15%. For more information see dividend tax credits. Copyright © 2002 Boat Harbour Investments Ltd.

TaxTips.ca Federal Basic Personal Amount
2025 Personal Amounts (1)		2025 Tax Rate	2024 Personal Amounts (1)		2024 Tax Rate
Minimum	$14,538	15%	Minimum	$14,156	15%
Maximum	16,129	15%	Maximum	15,705	15%

(1) The personal amounts for 2025 and 2024 are increased federally and for Yukon:

- for 2025: from $14,539 to $16,129 for taxpayers with net income (line 23600) of $177,882 or less. For incomes above this threshold, the additional amount of $1,590 is reduced until it becomes zero at net income of $253,414.

- for 2024: from $14,156 to $15,705 for taxpayers with net income (line 23600) of $173,205 or less. For incomes above this threshold, the additional amount of $1,549 is reduced until it becomes zero at net income of $246,752.

The minimum and maximum personal amounts for 2025 are indexed from the 2024 amounts. See Enhanced Basic Personal Amount for details of the calculation.

The marginal tax rates in blue above have been adjusted to reflect these changes. The table of marginal tax rates assume that line 23600 net income is equal to taxable income for this purpose.

For 2025, the marginal rate for $177,882 to $253,414 is 29.32% because of the above-noted personal amount reduction through this tax bracket. The additional 0.32% is calculated as 15% x ($16,129 - 14,539) / ($253,414 - $177,802).

For 2024, the marginal rate for $173,205 to $246,752 is 29.32% because of the above-noted personal amount reduction through this tax bracket. The additional 0.32% is calculated as 15% x ($15,705 - $14,156) / ($246,752 - $173,205).

Since the minimum and maximum amounts are being indexed at the same rate for 2024 and later years, the marginal tax rate for the 4th tax bracket will remain at 29.32% in later years.

Revised: November 19, 2024