Canada’s 2026 Payroll Deductions Formulas, including rates and thresholds for federal income tax, social taxes, and jurisdictional income taxes, were released Nov. 20 by the Canada Revenue Agency.
Changes in the 2026 Guide T4127, Payroll Deductions Formulas, include two that were introduced in 2025 but were prorated in a version of the formulas effective July 1, 2025. These are a decrease in the lowest federal income tax rate to 14%, instead of 15%, while Alberta’s lowest income tax rate decreased to 8%, instead of 10%.
Other provincial changes set to take effect for 2026 are that Manitoba’s tax rate ...
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