Adrian Wyld/The Canadian Press
A new year often brings new federal and provincial regulations and rules. In 2026, there will be a slew of laws that come into effect – some as early as Jan. 1 – including increases to hourly minimum wage, updated contribution limits from the Canada Revenue Agency and a new federal act that removes federal barriers to the interprovincial movement of goods and services.
Here are highlights of the new federal and provincial changes coming this year, and how they could have an impact on you.
New CRA tax rules
New tax rates and tax brackets
The Carney government lowered the bottom federal income-tax rate to 14 per cent from 15 per cent as of the beginning of July. This means 2026 will be the first time that the lower tax rate applies for the full year. The government has also adjusted federal tax brackets using a 2-per-cent inflation rate.
The 2026 federal tax brackets are:
- Income up to $58,523. Income up to the threshold of the lowest bracket will be taxed at a rate of 14 per cent. The upper limit for this bracket was $57,375 in 2025.
- Income above $58,523 and up to $117,045. For every dollar of income between the limits of the second tax bracket, Ottawa applies a tax rate of 20.5 per cent. The upper threshold was $114,750 in 2025.
- Income above $117,045 and up to $181,440. For every dollar of income falling in the third bracket, the federal income tax rate is 26 per cent. The previous upper limit was $177,882.
- Income above $181,440 and up to $258,482. The federal rate for the fourth bracket is 29 per cent, with the previous upper threshold at $253,414.
- Income above $258,482. The top federal tax rate is 33 per cent.
TFSA contribution limit
The tax-free savings account (TFSA) limit for 2026 remains $7,000. That means Canadians who have never contributed to a TFSA and were born in 1991 or earlier would have a cumulative TFSA contribution limit of $109,000 as of Jan. 1, 2026.
The limit is unchanged from 2024, when it increased by $500 to compensate for higher inflation. The contribution cap adjusts in $500 increments and inflation hasn’t yet risen enough for the cap to reach $7,500. Its original cap when the program was introduced in 2009 was $5,000.
RRSP contribution limit
The CRA imposes an annual limit on how much Canadians can deposit into their registered retirement savings plan account. The dollar limit for contributing to a registered retirement savings plan in 2026 is rising to $33,810 – up from $32,490 in 2025. Canadians can contribute a maximum of 18 per cent of their earnings from the previous year, up to the annual dollar ceiling.
The new basic personal amount
The basic personal amount is a non-refundable credit that can be claimed by all individuals and determines the minimum amount of income an individual can earn before they have to pay federal income tax.
Canadians will be able to earn up to $16,452 in 2026, up from $16,129 in 2025, before they have to pay federal income tax. Canadians earning $16,452 or less in 2026 will owe no federal income tax.
For those with incomes above that threshold, federal income taxes are reduced by an amount equal to the basic personal amount multiplied by the lowest federal income tax rate. This means the tax break will be worth up to $2,303 (14 per cent of $16,452) in 2026 for most Canadians, although taxpayers in the top two tax brackets stand to receive a slightly smaller amount.
Canada Pension Plan contributions and payments
The Canada Pension Plan contribution rate for 2026 will remain at 5.95 per cent for both employees and employers (or 11.9 per cent for the self-employed), but the estimated maximum contribution is $4,230.45 – up from $4,034.10 in 2025. The self-employed CPP contribution rate remains at 11.9 per cent, and the maximum contribution will increase to $8,460.90.
Meanwhile, CPP payments are set to increase by two per cent in January. That’s down from 2.6 per cent in 2025 and 4.4 per cent in 2024 – and a sign that inflation is cooling.
CPP payments are adjusted every year based on how much Canadians paid for goods and services, as tracked by Statistics Canada. The 2026 adjustment is based on data from November, 2024, to October, 2025, compared with the year prior. The increase is designed to make sure pension payments align with rising costs.
New NSF cheque rules
Starting March 12, 2026, banks will be restricted in how much they can charge customers for non-sufficient funds (NSF) in their personal accounts, capping that fee at a maximum of $10. Banks also cannot charge more than one NSF fee within two business days, or charge NSF fees on accounts that have less than $10 of authorized overdrafts.
This was originally proposed in the 2023 federal budget, and put in place last year, giving the banks one year from the announcement to comply.
Immigration changes
Caregiver stream pause
Starting in 2026, the federal government is suspending the Home Care Worker Immigration pilot projects, a stream that allows caregivers to settle permanently in Canada. This marks a departure from 30 years of dedicated pathways that granted permanent residency to those who look after the young and elderly.
The Home Care Worker Immigration pilots were introduced in June, 2024, consisting of two categories (the Home Child Care Pilot and the Home Support Worker Pilot), that guaranteed permanent residency for a maximum of 5,500 eligible applicants annually. They opened on March 31, 2025, and took applicants on a first-come, first-serve basis. Many prospective applicants were waiting for the program to open again in March, 2026.
Changes to labour
Federal and provincial minimum-wage increases
Canada’s federal minimum wage, which applies to those working in federally regulated industries, is adjusted every year in April based on the Consumer Price Index. The next adjustment is projected to take effect on Apr. 1, 2026, increasing to $18.10 from $17.75 an hour.
The minimum hourly wage in some provinces and territories will also increase in 2026:
- Prince Edward Island’s minimum wage will rise to $17 an hour as of Apr. 1, 2026, up from $16.50 an hour.
- Nova Scotia’s minimum wage will rise twice in 2026, reaching $17 an hour by October. The current minimum wage – $16.50 an hour – will increase to $16.75 on Apr. 1, 2026, and to $17 on Oct. 1, 2026.
- Ontario, B.C., Alberta, Newfoundland and Labrador, Yukon and Northwest Territories are projected to raise their minimum wage rates in 2026, but details have not yet been disclosed. Currently, Ontario’s minimum wage is $17.60 (as of September, 2025), B.C.’s is $17.85 (as of June, 2025), Newfoundland and Labrador’s is $16 (as of April, 2025), Yukon’s is $17.94 (as of April, 2025) and in the Northwest Territories, it’s $16.95 (as of September, 2025).
Free Trade and Labour Mobility in Canada Act
In June, the federal government tabled legislation introducing the Free Trade and Labour Mobility in Canada Act as part of Bill C-5 to promote free trade and labour mobility by removing federal barriers to the interprovincial movement of goods and services within Canada.
The act comes into effect on Jan. 1, 2026, and is designed to make it easier for businesses and Canadians to buy, sell, and transport goods and services across the country.
The legislation would align federal rules and regulations with those from provinces and territories. A good or service created in line with the requirements of a province or territory would meet comparable federal requirements. Also, a worker authorized by a provincial or territorial jurisdiction could more easily work in the same occupation in a federal jurisdiction or secure a federal licence.
For example, a washing machine that meets Ontario or Quebec’s energy-efficiency standards will also meet the comparable federal standards; or a worker who is licensed by a province or territory will be able to more easily secure a corresponding job in a federal jurisdiction.
Ontario’s new rules for job postings
Starting Jan. 1, 2026, the Ontario government is introducing new rules for job postings as changes under the Employment Standards Act come into effect.
Employers will be required to disclose the expected compensation or salary range for any public job posting. If a salary range is posted, it must be within $50,000 a year or less. For jobs paying more than $200,000 per year, this information is not required.
Under the changes, employers are also prohibited from asking for requirements related to Canadian work experience in any job posting.
Employers will also be required to disclose in a public job posting whether artificial intelligence is used during the hiring process. They’ll also be required to inform applicants who are interviewed whether a hiring decision has been made for that posting within 45 days of the last interview.
Ontario’s ‘As of Right’ labour mobility rules
The Ontario government has introduced new measures under its “As of Right” framework to remove interprovincial barriers for Canadian workers coming to Ontario.
Starting Jan. 1, some workers, including doctors, engineers and electricians, who are already certified to practice a regulated profession in another province or territory, can apply through a streamlined process to begin working in Ontario.
The legislative changes allow the workers to receive confirmation within 10 business days about whether they can begin working and are deemed to be certified in Ontario; and allow them to work up to six months while completing their full application
Changes to B.C.’s Pay Transparency Act
Starting in 2026, all companies with 50 or more employees in B.C. are required to publish annual pay-transparency reports. The reports are due Nov. 1 and must disclose information about gender-based pay differences using data collected from employees.
The change builds upon the province’s Pay Transparency Act, which is already in effect, but focused on bigger companies in previous years.
Canada Strong Pass
The Canada Strong Pass, a federal program offering free or discounted admission to national parks, historic sites, museums, marine conservation areas and more, was renewed for the holiday season – from Dec. 12, 2025, to Jan. 15, 2026. It will also return for the summer of 2026. The pass includes discounts on camping fees at national parks and Via Rail fares.
The program, which was introduced last June, follows up on a Liberal campaign promise to promote Canadian tourism in response to the U.S. tariff war.
There is no physical “Canada Strong Pass” or registration required – visitors can just show up at participating locations during the designated period.
Federal drug-price regulator unveils new guidelines for 2026
Canada’s drug-price regulator has issued new guidelines for how it evaluates pharmaceutical pricing, which are set to take effect on Jan. 1.
The new guidelines, from the Patented Medicine Prices Review Board, lay out how staff should monitor and review the prices of drugs brought to the Canadian market by comparing them to the prices in other countries or to other similar treatments in Canada. Staff are directed to triage cases and only launch in-depth reviews in certain cases, such as if the Canadian price is higher than the highest international price or if a price rises faster than inflation.
One big change in the final guidelines, compared with draft rules released last year, concerns who can file a complaint with the PMPRB if they feel a drug’s price is excessive.
In the draft released in December, three groups were empowered to file complaints: Federal and provincial health ministers, public health plans, and private health plans. In the final form, only health ministers and public plans will be allowed to file complaints with the PMPRB.
With reports from Erica Alini, Meera Raman, Ian Bailey, Vanmala Subramaniam and Chris Hannay.