CPA Indexation for 2026 Personal Amounts

The Consumer Price Index numbers for September have been released and that number is used to calculate the indexation rate for personal amounts and tax brackets.  Although the federal government has yet to announce the new tax figures, we’ve done the math to estimate the numbers.  It’s important information for year end tax planning purposes, a subject we will also cover in depth on November 5 at the live virtual CE Summit.  Read on to learn more.

In the last federal budget, the government proposed to allow Canadian Controlled Private Corporations to claim 100% CCA in the year of acquisition for assets purchased after April 18, 2021, to a maximum of $1,500,000.  However, legislation has yet to be introduced to implement that change.  That’s turning out to be a big problem for tax advisors and their clients.  Here’s why:

Most people know that when you miss filing a tax return your family will miss out on receiving the Canada Child Benefit.  However, did you know that you can retroactively claim the CCB by filing those missed returns?  How far back you can go, however, depends on what type of CCB you file for. 

Small businesses are critical to the health of the Canadian economy.  According to a recent study by the Government of Canada, small businesses (1-99 employees as defined by the Government) represented 97.9% of all enterprises in Canada. According to the same study, these businesses employed 8.4 million individuals in 2019 or 68.8% of the private labour force. In addition, small business contributed 41.9% to the Gross Domestic Product generated by the private sector in 2016.  Now that we are in past-pandemic mode, understanding the needs of small businesses will pay off in better tax and financial planning solutions. 

You may ask yourself, what is the difference between tax evasion and tax avoidance?

Now is the time you want your entire team stay up to date with the most recent changes in tax, investment, retirement and budget announcements so we have Big News for you: a special incentive for new subscribers to Knowledge Bureau Report. Invite your team, colleagues, associates and others in your circle of influence to stay in the know and you will be entered for a chance to win a ballot to win any of the following prizes:

No time to wait for hours on hold with the CRA?  Expand your tax season toolkit with Knowledge Bureau’s suite of immediately implementable tools including EverGreen Explanatory Notes and the Knowledge Bureau Tax Planning Calculators.  These tools are designed to provide you with answers to trigger questions your clients have about tax efficiency and the important financial decisions they need to make.