💬 Frequently Asked Questions
What are the 2026 Canadian federal tax brackets?
For 2026, federal tax rates are: 15% up to $55,867; 20.5% from $55,868 to $111,733; 26% from $111,734 to $173,205; 29% from $173,206 to $246,752; and 33% over $246,752. Ontario residents also pay provincial tax ranging from 5.05% to 13.16%. Our Mississauga CPA team stays updated on all tax bracket changes to maximize your savings.
How do RRSP contributions reduce my tax bill?
RRSP contributions are tax-deductible, reducing your taxable income dollar-for-dollar. For example, if you earn $80,000 and contribute $10,000 to your RRSP, you only pay tax on $70,000. At a marginal rate of 29.65% (Ontario), that saves you $2,965. Our GTA-based CPAs help clients optimize RRSP strategies year-round, not just at tax time.
What's the difference between marginal and effective tax rates?
Your marginal tax rate is what you pay on your next dollar of income (e.g., 29.65% in Ontario for income between $55,868-$98,463). Your effective tax rate is your total tax divided by total income — typically much lower because earlier dollars are taxed at lower rates. Toronto and Mississauga taxpayers often confuse these, leading to poor financial decisions. A CPA consultation clarifies this instantly.
Do I need to pay CPP and EI if I'm self-employed?
Self-employed individuals pay both employer and employee portions of CPP (up to $8,048.40 in 2026), but are exempt from EI unless they opt in. If you operate a corporation in Mississauga or the GTA, you can optimize this through salary vs. dividend planning. Our Ontario CPA firm specializes in self-employed tax strategies that save thousands annually.
When should I talk to a CPA about tax planning?
NOW — not April. Proactive tax planning throughout the year unlocks deductions, credits, and strategies that vanish after December 31st. Whether you're in Toronto, Mississauga, or anywhere in the GTA, consulting with a CPA in Q1-Q3 yields 3-5x better results than scrambling during tax season. Call Insight Accounting at (905) 270-1873 for your free consultation.