The federal income tax system in Canada is structured using progressive tax brackets, meaning the rate of taxation increases as income rises. For 2024, the Canada Revenue Agency (CRA) has updated the income brackets to reflect inflation adjustments. These brackets determine how much tax individuals owe based on their taxable income, with higher earners subject to higher tax rates. Below is a table outlining the current federal tax rates and corresponding income ranges for the 2024 tax year, ensuring Canadians can accurately calculate their federal tax obligations.
| Income Bracket (CAD) | Tax Rate |
| Up to $53,359 | 15% |
| $53,360 to $106,717 | 20.5% |
| $106,718 to $165,430 | 26% |
| $165,431 to $235,675 | 29% |
| Over $235,675 | 33% |
