Updates
Updates include calculation and rate changes to reflect current tax law resulting from inflation adjustments, legislative changes, and review of supported authorities. Effective dates indicate when the changes enter into force. Updates are effective January 1, 2026, unless stated otherwise. Amounts are given in CAD or USD. Amounts are annual unless stated otherwise. Changes apply to income tax unless stated otherwise.
Amounts are given in CAD or USD. Amounts are annual unless stated otherwise. Changes apply to income tax unless stated otherwise.
Canada
Income Tax
Increased the following, unless stated otherwise:
Tax bracket thresholds. The threshold for the 33% top bracket increased by $5,068 to $258,483.
Minimum and maximum personal and spouse credits by $44 to $2,224 and by $49 to $2,468, respectively.
Employment credit by $29 to $1,501.
Social Security
Pension (CPP) wage ceiling by $3,400 to $74,700.
Additional pension (CPP2) wage ceiling by $3,900 to $85,100.
Employment insurance wage ceiling by $3,200 to $68,900.
Decreased the employment insurance contribution rate by 0.01% to 1.63%.
Alberta
Made the following changes:
Updated the tax table from a five-tiered to a six-tiered table with a 15% top rate on income exceeding $362,962.
Decreased the personal, spouse, and dependent credits by $16 to $1,786.
British Columbia
Increased the following:
Tax bracket thresholds. The threshold for the 20.5% top bracket increased by $5,783 to $265,347.
Personal credit by $15 to $668.
Spouse and dependent credits by $12 to $572.
Low-income tax reduction amounts.
Manitoba
Increased the following:
Tax bracket thresholds. The threshold for the 17.4% top bracket increased by $2,100 to $103,300.
Maximum personal amount by $34 to $1,673.
New Brunswick
Increased the following:
Tax bracket thresholds. The threshold for the 19.5% top bracket increased by $3,824 to $193,882.
Personal credit by $25 to $1,285.
Spouse and dependent credits by $20 to $1,007.
Low-income tax reduction amounts.
Newfoundland & Labrador
Increased the following:
Tax bracket thresholds. The threshold for the 21.8% top bracket increased by $13,000 to $1.18 million.
Personal credit by $11 to $973.
Spouse and dependent credits by $9 to $795.
Low-income tax reduction amounts.
Northwest Territories
Increased the following:
Tax bracket thresholds. The threshold for the 14.05% top bracket increased by $3,379 to $172,346.
Personal and dependent credits by $21 to $1,074.
Nova Scotia
Increased the personal, spouse, and dependent amounts by $264 to $1,032, effective January 1, 2025.
Increased the following, effective January 1, 2026:
Tax bracket thresholds. The threshold for the 21% top bracket increased by $2,474 to $157,124.
Personal, spouse, and dependent amounts by $280 to $1,048.
Nunavut
Increased the following:
Tax bracket thresholds. The threshold for the 11.05% top bracket increased by $3,558 to $181,439.
Personal and dependent credits by $15 to $786.
Ontario
Increased the following:
Two lowest tax bracket thresholds. The threshold for the 13.16% top bracket remains $220,000.
Surtax bracket thresholds. The threshold for the 36% top rate increased by $138 to $7,435.
Personal credit by $12 to $655.
Spouse and dependent credits by $10 to $556.
Qualified child amount by $10 to $553.
Tax reduction amount by $5 to $299.
Quebec
Income Tax
Increased the following, unless stated otherwise:
Tax bracket thresholds. The threshold for the 25.75% top bracket increased by $2,655 to $132,245.
Personal and spouse credits by $53 to $2,653.
Maximum deduction for workers by $25 to $1,450.
Social Security
Pension (QPP) wage ceiling by $3,400 to $74,700.
Additional pension (QPP2) wage ceiling by $3,900 to $85,100.
Employment insurance wage ceiling by $3,200 to $68,900.
Decreased the employment insurance contribution rate by 0.01% to 1.30%.
Saskatchewan
Increased the following:
Tax bracket thresholds. The threshold for the 14.5% top bracket increased by $2,982 to $155,805.
Personal and spouse credits by $93 to $2,140.
Dependent credit by $69 to $878.
Yukon
Increased the tax bracket thresholds for the first three brackets. The threshold for the 15% top bracket remains $500,000.
United States
Income Tax
Made the following changes as a result of H.R. 1 (One Big Beautiful Bill Act), retroactively effective January 1, 2025:
Increased the standard deduction for all filing status. The deduction increased by $750 to $15,750 for single filers.
Increased the child credit by $200 to $2,220.
Increased the maximum State and Local Tax (SALT) deduction by $30,000 to $40,000. The maximum is halved for married employees filing separately.
Added a phaseout to the SALT deduction. For single filers with Adjusted Gross Income (AGI) over $250,000, the maximum SALT deduction decreases by 30% of AGI in excess of the threshold, to a minimum of $10,000.
Increased the following for all filing status, effective January 1, 2026. Amounts shown apply to single filers:
Tax bracket thresholds. The threshold for the 37% top bracket increased by $14,250 to $640,600.
Standard deduction. The deduction increased by $1,100 to $16,100.
Alternative minimum tax thresholds, exemptions, and exemption phaseout thresholds.
Social Security
Increased the OASDI wage ceiling by $8,400 to $184,500. This amount is also used as a wage ceiling for local taxes in nine Kentucky municipalities* and for Paid Family and Medical Leave contributions in Colorado, Connecticut, Massachusetts, Oregon, and Washington.
Arkansas
Increased the following:
Bracket thresholds. The 3.9% top bracket threshold increased by $2,400 to $94,700.
Bracket adjustment threshold by $2,530 to $98,010.
California
Increased the disability insurance rate by 0.1% to 1.3%.
Hawaii
Increased the standard deductions for all filing status. The deduction for single [JS9] filers increased by $3,600 to $8,000.
Illinois
Increased the standard exemption by $75 to $2,950.
Kentucky
Made the following changes:
Decreased the statute and supplemental rates by 0.5% to 3.5%.
Increased the standard deduction by $90 to $3,360.
Maine
Increased the following for all filing status. Amounts shown apply to single filers:
Bracket thresholds. The threshold for the 7.15% top bracket increased by $1,450 to $64,900.
Personal exemption by $150 to $5,300.
Personal exemption phaseout thresholds by $7,550 to $341,000.
Deduction phaseout threshold by $2,250 to $102,250.
Itemized deduction cap by $800 to $37,100.
Maryland
Increased the following for all filing status. Amounts shown apply to single filers:
Tax bracket thresholds. The threshold for the 6.5% top bracket rate increased by $23,650 to $1.02 million.
Minimum and maximum standard deduction amounts. The maximum amount increased by $50 to $3,400.
Massachusetts
Increased the threshold for the 9% top supplemental rate:
By $29,400 to $1.08 million, effective January 1, 2025.
By $24,650 to $1.11 million, effective January 1, 2026.
Minnesota
Increased the following for all filing status. Amounts shown apply to single filers:
Tax bracket thresholds. The threshold for the 9.85% top bracket increased by $4,520 to $203,150.
Dependent exemption by $100 to $5,300.
Deduction and dependent exemption phaseout thresholds. The thresholds increased by $5,450 to $244,500.
Mississippi
Decreased the statute and supplemental tax rates by 0.4% to 4%.
Missouri
Increased the tax bracket thresholds. The threshold for the 4.7% top bracket increased by $245 to $9,436.
Montana
Increased the tax bracket thresholds and decreased the top rate for all filing status. The new top rate of 5.65% applies to income over $47,500 for single filers.
Nebraska
Made the following changes. Amounts shown apply to single filers:
Removed the top 5.2% bracket and lowered the resulting top rate. The new top rate of 4.55% applies to income in excess of $24,760.
Increased the following:
Tax bracket thresholds.
Standard deductions by $250 to $8,850.
Personal and dependent exemption credits by $5 to $176.
New York
Increased the following for Paid Family Medical Leave:
Wage ceiling by $3,976 to $95,350.
Contribution rate by 0.04% to 0.43%.
North Carolina
Decreased the statute and supplemental tax rates by 0.26% to 3.99% and 4.09%, respectively.
North Dakota
Increased the tax bracket thresholds for all filing status. The threshold for the 2.5% top bracket increased by $27,800 to $285,725 for single filers.
Ohio
Updated the supplemental tax table from a six-tiered table to a flat rate of 3.5%.
Oregon
Increased the following for all filing status. Amounts shown apply to single filers:
Tax bracket thresholds. The threshold for the 9.9% top bracket remains $125,000.
Standard deduction by $75 to $2,910.
Federal tax deduction maximum amount by $250 or $8,750.
Exemption credit by $7 to $263.
Rhode Island
Increased the following for all filing status. Amounts shown apply to single filers:
Tax bracket thresholds. The threshold for the 5.99% top bracket increased by $4,800 to $186,450.
Standard deduction by $300 to $11,200.
Personal exemption by $100 to $5,200.
Personal exemption phaseout threshold and step by $6,750 to $261,050 and by $200 to $7,450, respectively.
South Carolina
Made the following changes:
Increased tax bracket thresholds and decreased the top rate. The threshold for the 6% top bracket increased by $430 to $19,030.
Increased the dependent exemption by $110 to $5,250.
Aligned the supplemental tax table with the statute tax table.
Utah
Increased the following:
Dependent exemption by $56 to $2,167.
Credit phaseout thresholds for all filing status. The threshold increased by $483 to $18,696 for single filers.
Vermont
Increased the following for all filing status. Amounts shown apply to single filers:
Tax bracket thresholds. The threshold for the 8.75% top bracket increased by $6,650 to $256,350.
Personal exemption and standard deduction by $150 to $5,450 and by $200 to $7,850, respectively.
Wisconsin
Increased the following for all filing status. Amounts apply to single filers:
Tax bracket thresholds. The threshold for the 7.65% top bracket increased by $9,430 to $332,720.
Standard deduction by $400 to $13,960.
Deduction phaseout threshold by $570 to $20,120.
*Please reach out to your Equus contact for a list of specific authorities.