The federal government has made some inflation-based adjustments to the tax brackets Canadians fall into and what their RRSP contribution room could be. Here’s what you need to know.

For 2025, income tax brackets are increasing. Federal tax is 15 per cent for earnings up to $57,375; 20.5 per cent for between $57,375.01 and $114,750; and 26 per cent for incomes between $114,750.01 and $177,882.

Here's what the new tax brackets are going to be, plus how much you can contribute to a tax-free savings account and RRSP{ai:summary}<p>Canada's federal government is adjusting tax brackets for 2025, increasing the thresholds for income tax rates. The new rates will be 15% for earnings up to $57,375, 20.5% for incomes between $57,375.01 and $114,750, and 26% for earnings from $114,750.01 to $177,882. </p><p>These changes also affect the RRSP contribution room. Taxpayers should be aware of these adjustments as they plan their finances for the upcoming year. #economy</p>

These are the new tax brackets for Canadians in 2025

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