Canada Updates 2026 Payroll Deductions Formulas

Canada updated its 2026 Payroll Deductions Formulas, effective July 1, after three provinces made changes to income tax rates or amounts retroactively to the beginning of the year, the Canada Revenue Agency said May 21.

The Payroll Deductions Formulas effective July 1 include changes for British Columbia, Newfoundland and Labrador, and Prince Edward Island. Only the sections affected by changes are reproduced in the July 1 edition, and each change is prorated to take into account the previous value used for the first half of 2026, the CRA said.

In British Columbia, the lowest income tax rate was increased from ...