A new year means a new slate of laws and measures will come into effect in Canada.
Next month will see several new laws and measures kick in, including important information for taxpayers in Canada, and great news for Canadians who want to take advantage of the outdoors this winter.
Here are the new laws and rules you can expect in Canada in January 2026.
New income tax brackets for 2026
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In November, the federal government announced the income tax thresholds for 2026, which means your tax bracket will change slightly next year.
While federal tax rates are the same, the income thresholds for each bracket have shifted.
According to the Canada Revenue Agency (CRA), in 2026, the indexation increase will be two per cent, which is lower than the 2.7 per cent increase in 2025.
Check to see how much income tax you’ll have to pay next year based on your bracket.
Free Trade and Labour Mobility Act kicks in
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Ottawa introduced the Free Trade and Labour Mobility Act to support the removal of federal barriers to interprovincial trade, aiming to “strengthen the Canadian economy and make it easier for business and Canadians to trade goods and services.”
The legislation received royal assent in June and will officially come into force on Jan. 1, 2026.
“In some cases, similar federal, provincial or territorial government rules and standards exist for businesses selling and buying the same goods or services,” reads an announcement from the federal government. “The Act provides a framework to reduce the burden of these duplicative rules, freeing trade across provincial and territorial borders.”
Canada Strong Pass extension
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Canadians who weren’t able to take advantage of this program in the summer still have a chance to use it for winter activities.
The Canada Strong Pass was such a success over the summer that the federal government announced that it’s extending the program this winter.
From Dec. 12, 2025, to Jan 15, 2026, families can once again enjoy free and discounted access to parks, national galleries, museums, and even rail travel.
Learn more about what free perks you’ll have access to this winter.
Benefit and credit payments start for 2026
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Canadians will start receiving benefits and credit payments in January.
As the cost of living continues to rise, benefit and credit payments are increased by the Canada Revenue Agency (CRA) using a process called indexation to keep pace with inflation.
In 2026, the indexation increase will be two per cent, which means some benefit and credit payments will increase by that amount. In comparison, it will be a lower hike than the 2.7 per cent increase in 2025. However, this increase won’t occur until July, when the new benefit year begins.
Check to see all of the benefit and credit payment dates in January.