PolicyEngine · MaxGhenis · Aug 24, 2025 · Aug 24, 2025 · Aug 24, 2025 · Aug 24, 2025
diff --git a/changelog_entry.yaml b/changelog_entry.yaml
@@ -0,0 +1,5 @@
+- bump: minor
+  changes:
+    added:
+      - Federal tax parameters for 2024 and 2025 including updated tax brackets and basic personal amount.
+      - Federal tax rate reduction from 15% to 14.5% for 2025 (14% for 2026) on lowest bracket.
diff --git a/policyengine_canada/parameters/gov/cra/tax/income/credits/basic_personal_amount/base.yaml b/policyengine_canada/parameters/gov/cra/tax/income/credits/basic_personal_amount/base.yaml
@@ -4,6 +4,8 @@ values:
   2021-01-01: 12_421
   2022-01-01: 12_719
   2023-01-01: 13_521
+  2024-01-01: 14_156
+  2025-01-01: 14_538
 metadata:
   unit: currency-CAD
   period: year
@@ -12,4 +14,15 @@ metadata:
     - title: Government of Canada - Basic Personal amount
       href: https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/basic-personal-amount.html
     - title: Income Tax Act (E), (A), (118.1), (1.1)
-      href: https://laws-lois.justice.gc.ca/eng/acts/I-3.3/page-84.html?txthl=personal+amounts+amount+basic#s-118 
+      href: https://laws-lois.justice.gc.ca/eng/acts/I-3.3/page-84.html?txthl=personal+amounts+amount+basic#s-118
+    # Note: 2020 value from CRA historical rates page
+    - title: T4127 Payroll Deductions Formulas - 113th Edition (2021 BPA = $12,421)
+      href: https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/payroll-deductions-t4127-payroll-deductions-formulas/t4127-jan-113th-edition-effective-january-1-2021/t4127-jan-payroll-deductions-formulas-computer-programs.html
+    - title: T4127 Payroll Deductions Formulas - 115th Edition (2022 BPA = $12,719)
+      href: https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/payroll-deductions-t4127-payroll-deductions-formulas/t4127-jan-115th-edition-effective-january-1-2022/t4127-jan-payroll-deductions-formulas-computer-programs.html
+    - title: T4127 Payroll Deductions Formulas - 117th Edition (2023 BPA = $13,521)
+      href: https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/payroll-deductions-t4127-payroll-deductions-formulas/t4127-jan-117th-edition-effective-january-1-2023/t4127-jan-payroll-deductions-formulas.html
+    - title: T4127 Payroll Deductions Formulas - 119th Edition (2024 BPA = $14,156)
+      href: https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/payroll-deductions-t4127-payroll-deductions-formulas/t4127-jan-119th-edition-effective-january-1-2024/t4127-jan-payroll-deductions-formulas-computer-programs.html
+    - title: T4127 Payroll Deductions Formulas - 120th Edition (2025 BPA = $14,538)
+      href: https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/t4127-payroll-deductions-formulas/t4127-jan/t4127-jan-payroll-deductions-formulas-computer-programs.html 
diff --git a/...engine_canada/parameters/gov/cra/tax/income/credits/basic_personal_amount/max_amount.yaml b/...engine_canada/parameters/gov/cra/tax/income/credits/basic_personal_amount/max_amount.yaml
@@ -4,6 +4,8 @@ values:
   2021-01-01: 13_808
   2022-01-01: 14_398
   2023-01-01: 15_000
+  2024-01-01: 15_705
+  2025-01-01: 16_129
 metadata:
   unit: currency-CAD
   period: year
@@ -12,4 +14,15 @@ metadata:
     - title: Government of Canada - Basic Personal amount
       href: https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/basic-personal-amount.html
     - title: Income Tax Act (E), (A), (118.1), (1.1)
-      href: https://laws-lois.justice.gc.ca/eng/acts/I-3.3/page-84.html?txthl=personal+amounts+amount+basic#s-118 
+      href: https://laws-lois.justice.gc.ca/eng/acts/I-3.3/page-84.html?txthl=personal+amounts+amount+basic#s-118
+    # Note: 2020 value from CRA historical rates page
+    - title: T4127 Payroll Deductions Formulas - 113th Edition (2021 max BPA = $13,808)
+      href: https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/payroll-deductions-t4127-payroll-deductions-formulas/t4127-jan-113th-edition-effective-january-1-2021/t4127-jan-payroll-deductions-formulas-computer-programs.html
+    - title: T4127 Payroll Deductions Formulas - 115th Edition (2022 max BPA = $14,398)
+      href: https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/payroll-deductions-t4127-payroll-deductions-formulas/t4127-jan-115th-edition-effective-january-1-2022/t4127-jan-payroll-deductions-formulas-computer-programs.html
+    - title: T4127 Payroll Deductions Formulas - 117th Edition (2023 max BPA = $15,000)
+      href: https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/payroll-deductions-t4127-payroll-deductions-formulas/t4127-jan-117th-edition-effective-january-1-2023/t4127-jan-payroll-deductions-formulas.html
+    - title: T4127 Payroll Deductions Formulas - 119th Edition (2024 max BPA = $15,705)
+      href: https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/payroll-deductions-t4127-payroll-deductions-formulas/t4127-jan-119th-edition-effective-january-1-2024/t4127-jan-payroll-deductions-formulas-computer-programs.html
+    - title: T4127 Payroll Deductions Formulas - 120th Edition (2025 max BPA = $16,129)
+      href: https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/t4127-payroll-deductions-formulas/t4127-jan/t4127-jan-payroll-deductions-formulas-computer-programs.html 
diff --git a/.../parameters/gov/cra/tax/income/credits/basic_personal_amount/phase_out/threshold/end.yaml b/.../parameters/gov/cra/tax/income/credits/basic_personal_amount/phase_out/threshold/end.yaml
@@ -3,6 +3,8 @@ values:
   2020-01-01: 200_000
   2022-01-01: 221_708
   2023-01-01: 235_675
+  2024-01-01: 246_752
+  2025-01-01: 253_414
 metadata:
   unit: currency-CAD
   period: year

diff --git a/...arameters/gov/cra/tax/income/credits/basic_personal_amount/phase_out/threshold/start.yaml b/...arameters/gov/cra/tax/income/credits/basic_personal_amount/phase_out/threshold/start.yaml
@@ -3,6 +3,8 @@ values:
   2020-01-01: 140_388
   2022-01-01: 155_625
   2023-01-01: 165_430
+  2024-01-01: 173_205
+  2025-01-01: 177_882
 metadata:
   unit: currency-CAD
   period: year

diff --git a/policyengine_canada/parameters/gov/cra/tax/income/income_tax_schedule.yaml b/policyengine_canada/parameters/gov/cra/tax/income/income_tax_schedule.yaml
@@ -6,13 +6,17 @@ brackets:
     rate:
       values:
         2021-01-01: 0.15
+        2025-01-01: 0.145
+        2026-01-01: 0.14
   - threshold:
       values:
         2019-01-01: 47_630
         2020-01-01: 48_535
         2021-01-01: 49_020
         2022-01-01: 50_197
         2023-01-01: 53_359
+        2024-01-01: 55_867
+        2025-01-01: 57_375
     rate:
       values:
         2021-01-01: 0.205
@@ -23,6 +27,8 @@ brackets:
         2021-01-01: 98_040 
         2022-01-01: 100_392
         2023-01-01: 106_717
+        2024-01-01: 111_733
+        2025-01-01: 114_750
     rate:
       values:
         2021-01-01: 0.26
@@ -33,6 +39,8 @@ brackets:
         2021-01-01: 151_978 
         2022-01-01: 155_625
         2023-01-01: 165_430
+        2024-01-01: 173_205
+        2025-01-01: 177_882
     rate:
       values:
         2021-01-01: 0.29
@@ -43,6 +51,8 @@ brackets:
         2021-01-01: 216_511
         2022-01-01: 221_708
         2023-01-01: 235_675
+        2024-01-01: 246_752
+        2025-01-01: 253_414
     rate:
       values:
         2021-01-01: 0.33
@@ -54,7 +64,23 @@ metadata:
   name: federal_tax_rates
   label: Federal tax rates
   reference:
-  - title: Government of Canada - 9.2.4 Tax brackets and rates
-    href: https://www.canada.ca/en/financial-consumer-agency/services/financial-toolkit/taxes-quebec/taxes-quebec-2/5.html
-  - title: Government of Canada - Canadian income tax rates for individuals 2023
+  # 2019-2020 rates
+  - title: Government of Canada - Canadian income tax rates for individuals
     href: https://www.canada.ca/en/revenue-agency/services/tax/individuals/frequently-asked-questions-individuals/canadian-income-tax-rates-individuals-current-previous-years.html
+  # 2021 rates
+  - title: T4127 Payroll Deductions Formulas - 113th Edition (2021 rates)
+    href: https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/payroll-deductions-t4127-payroll-deductions-formulas/t4127-jan-113th-edition-effective-january-1-2021/t4127-jan-payroll-deductions-formulas-computer-programs.html
+  # 2022 rates
+  - title: T4127 Payroll Deductions Formulas - 115th Edition (2022 rates)
+    href: https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/payroll-deductions-t4127-payroll-deductions-formulas/t4127-jan-115th-edition-effective-january-1-2022/t4127-jan-payroll-deductions-formulas-computer-programs.html
+  # 2023 rates
+  - title: T4127 Payroll Deductions Formulas - 117th Edition (2023 rates)
+    href: https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/payroll-deductions-t4127-payroll-deductions-formulas/t4127-jan-117th-edition-effective-january-1-2023/t4127-jan-payroll-deductions-formulas.html
+  # 2024 rates
+  - title: T4127 Payroll Deductions Formulas - 119th Edition (2024 rates)
+    href: https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/payroll-deductions-t4127-payroll-deductions-formulas/t4127-jan-119th-edition-effective-january-1-2024/t4127-jan-payroll-deductions-formulas-computer-programs.html
+  # 2025 rates
+  - title: T4127 Payroll Deductions Formulas - 120th Edition (2025 rates)
+    href: https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/t4127-payroll-deductions-formulas/t4127-jan/t4127-jan-payroll-deductions-formulas-computer-programs.html
+  - title: Department of Finance - Delivering a middle-class tax cut (2025 rate reduction)
+    href: https://www.canada.ca/en/department-finance/news/2025/05/delivering-a-middle-class-tax-cut.html