The federal tax brackets and basic personal amount for 2027 had not been announced as of October 30, 2026. This guide states the verified 2026 figures, explains how indexation sets the 2027 figures, and gives the recheck date.
Applies in: CA
The federal tax brackets and basic personal amount for 2027 had not been announced as of October 30, 2026. That is the central fact of this guide, and it shapes everything in it. The Canada Revenue Agency page that publishes the indexed amounts carries a chart that ends at 2026. Until the Agency posts the 2027 chart, there is no official 2027 bracket threshold and no official 2027 basic personal amount to state, and this guide invents neither.
What this guide does state is the verified 2026 figures, the rates that are already legislated for 2027, how the indexation mechanism works, and when to recheck. The 2026 figures are useful now: they are the figures that govern the 2026 return filed in spring 2027, and they show the structure the 2027 figures will follow. They must not be used as 2027 figures.
This guide covers federal tax only. It gives no personalized tax advice and no statement about what any individual owes. Provincial and territorial tax is a separate calculation, covered briefly at the end.
As of October 30, 2026, the 2027 federal tax bracket thresholds and the 2027 basic personal amount are not yet announced. The Canada Revenue Agency indexation page states that its chart provides the indexed amounts "based on the announced personal income tax and benefit commitments to date," and the chart on that page runs from 2023 to 2026. No 2027 column exists on the page. The payroll deductions tables for 2026 likewise carry only 2026 thresholds.
That timing is normal. The indexed amounts depend on Consumer Price Index data for the twelve months ending September 30, and the Agency posts the new chart later in the fall. The recheck date for this guide is late November 2026: check the Canada Revenue Agency indexation page again then, and check it once more before using any 2027 figure for planning or for a payroll change. If the page still shows only 2026 figures, the 2027 figures are still unannounced, whatever any other source claims.
Estimates of the 2027 figures circulate each fall, calculated by applying the indexation formula to published price data. This guide states no such estimate. The law works from unrounded prior-year amounts, so multiplying a rounded 2026 threshold by an estimated factor can be off by a dollar, and a dollar matters at a bracket boundary. Use the published chart when it appears, not an estimate.
For 2026, the federal tax rates and income thresholds published by the Canada Revenue Agency are:
| Taxable income | Federal rate |
|---|---|
| Up to $58,523 | 14% |
| $58,523.01 to $117,045 | 20.5% |
| $117,045.01 to $181,440 | 26% |
| $181,440.01 to $258,482 | 29% |
| Over $258,482 | 33% |
The system is marginal. Only the income inside each band is taxed at that band's rate. A person with $70,000 of taxable income in 2026 does not pay 20.5 percent on all $70,000: the first $58,523 is taxed at 14 percent, and only the remaining $11,477 is taxed at 20.5 percent. The federal tax before credits on that income, using the 2026 thresholds, is $8,193.22 on the first band plus $2,352.79 on the second band, for $10,546.01. That arithmetic is shown so the marginal structure can be checked; it is a 2026 illustration, not a 2027 result, and it is before any credits, including the basic personal amount.
The lowest rate deserves its own note because it changed recently. Bill C-4 reduced the lowest marginal rate from 15 percent to 14.5 percent for the 2025 taxation year and to 14 percent for the 2026 and subsequent taxation years. It received Royal Assent on March 12, 2026. The 14 percent rate is therefore already legislated for 2027. What is not yet known for 2027 is the dollar amount where the 14 percent band ends.
The basic personal amount is a non-refundable tax credit, claimed on line 30000 of the return. The Canada Revenue Agency describes it as designed to ensure that a person can earn a minimum amount of income before having to pay federal income tax. Because it is non-refundable, it can reduce federal tax to zero but cannot create a refund on its own.
For 2026, the maximum basic personal amount is $16,452 and the minimum is $14,829. The difference between them, $1,623, is the maximum enhanced amount. The maximum applies where net income is at or below the threshold at which the 29 percent bracket begins. The minimum applies where net income is at or above the threshold at which the 33 percent bracket begins. Between those two thresholds, the amount phases down from the maximum toward the minimum, and the exact amount for a given income is worked out on the federal worksheet. A filer does not choose between the maximum and the minimum: the amount follows from net income on the return.
The same structure applies to the spouse or common-law partner amount and to the amount for an eligible dependant, whose 2026 maximums match the basic personal amount maximums on the indexation chart. Other 2026 indexed amounts on the same chart include the age amount of $9,208, the Canada employment amount maximum of $1,501, and the disability amount of $10,341. Those amounts are stated here only as 2026 figures from the same chart. Their 2027 amounts, like the basic personal amount itself, had not been announced as of October 30, 2026.
The phase-out means the basic personal amount is not a single number for everyone. Two filers with different net incomes can properly claim different basic personal amounts in the same year, and both can be correct. Payroll withholding uses the claim codes on Form TD1, which reflect the personal amounts, and employees receive the indexing change automatically whether or not they file a new TD1, according to the payroll deductions tables.
Each year, certain personal income tax and benefit amounts are indexed to inflation using Consumer Price Index data as reported by Statistics Canada. Increases to tax bracket thresholds, amounts relating to non-refundable credits, and most other amounts take effect on January 1 of the applicable year. Increases in amounts for certain income-tested benefits, such as the goods and services tax credit, the Canada child benefit, and the Child disability benefit, take effect on July 1, to coincide with the benefit payment year.
For 2026, the federal indexing factor was 2.0 percent. The payroll deductions tables state that the 2026 federal income thresholds, personal amounts, and Canada employment amount were changed on that basis. No 2027 indexing factor had been published by the Canada Revenue Agency as of October 30, 2026. The factor is a single number applied across the indexed amounts, but the published dollar amounts, not the factor, are what a filer enters, and this guide waits for the published amounts.
Federal tax is only half the calculation for most filers. Each province and territory has its own rates, thresholds, and personal amounts, calculated on Form 428 for the province or territory where the filer resided on December 31 of the tax year. Quebec residents file a separate provincial return with Revenu Quebec.
This guide states no provincial or territorial bracket or basic personal amount. Provincial indexation does not always follow the federal schedule: some provinces index annually to their own price index, some adjust on a different date, and some have frozen their brackets for a period by legislation. Checking the provincial or territorial income tax package for the year being filed is the only reliable route to those figures, and the federal figures in this guide must not be used as provincial figures.
No, not as of October 30, 2026. The Canada Revenue Agency page that publishes the indexed personal income tax and benefit amounts carries a chart that ends at 2026, and no 2027 bracket thresholds were published on that page when this guide was written. The 2026 thresholds in this guide are the latest verified federal figures, and they must not be used as 2027 thresholds. The 2027 thresholds will be the 2026 thresholds adjusted by the indexation factor for 2027, and the exact dollar amounts depend on the unrounded prior-year amounts the law works from, so a rounded estimate is not a substitute for the published chart. Check the Canada Revenue Agency indexation page again in late November 2026, and use only the figures on that page once they appear.
For 2026, taxable income up to $58,523 is taxed at 14 percent, income from $58,523.01 to $117,045 at 20.5 percent, income from $117,045.01 to $181,440 at 26 percent, income from $181,440.01 to $258,482 at 29 percent, and income above $258,482 at 33 percent. These are the federal rates and thresholds published by the Canada Revenue Agency in the payroll deductions tables for 2026. Only the slice of income inside each band is taxed at that band's rate: income below a threshold is not re-taxed at the higher rate when total income passes the threshold. Provincial and territorial tax is calculated separately, on top of federal tax, at each province's or territory's own rates and thresholds.
The basic personal amount is a non-refundable tax credit that lets a person earn a minimum amount of income before paying federal income tax. It is claimed on line 30000 of the return. For 2026, the maximum basic personal amount is $16,452 and the minimum is $14,829, a difference of $1,623. The maximum applies where net income is at or below the threshold where the 29 percent bracket begins, and the minimum applies where net income is at or above the threshold where the 33 percent bracket begins, with the amount phasing down between those two thresholds. The 2027 maximum and minimum had not been announced as of October 30, 2026, and the 2026 amounts in this answer must not be carried forward as 2027 amounts.
The lowest federal rate is 14 percent for 2026 and later years. Bill C-4 reduced it from 15 percent to 14.5 percent for the 2025 taxation year and to 14 percent for the 2026 and subsequent taxation years, and it received Royal Assent on March 12, 2026. The 2025 return therefore used a blended 14.5 percent rate for the year, while the 2026 brackets in this guide use a flat 14 percent on the first band. The rate change also affects the value of non-refundable credits, which are calculated using the lowest rate, and the Department of Finance published a report on that interaction in June 2026. The 14 percent rate itself is legislated for 2027 as well, but the dollar threshold where the first band ends had not been announced as of October 30, 2026.
Each year, certain personal income tax and benefit amounts are indexed to inflation using Consumer Price Index data as reported by Statistics Canada. Increases to tax bracket thresholds, amounts relating to non-refundable credits, and most other amounts take effect on January 1 of the applicable year. Increases for certain income-tested benefits, such as the goods and services tax credit and the Canada child benefit, take effect on July 1, to match the benefit payment year. For 2026 the federal indexing factor was 2.0 percent. No indexing factor for 2027 had been published by the Canada Revenue Agency as of October 30, 2026, and this guide states none. The mechanism is annual and automatic in the sense that the law sets how the adjustment is calculated, but the published dollar amounts are what a filer uses, and they arrive when the Canada Revenue Agency posts them, normally later in the fall.
No. Each province and territory sets its own income tax rates, thresholds, and personal amounts, and files them through its own tax calculation, except in Quebec, where provincial tax is filed with Revenu Quebec. The federal brackets and basic personal amount in this guide apply everywhere in Canada, and provincial or territorial tax is added on top. This guide states no provincial or territorial bracket or basic personal amount, because those figures were not checked province by province for this guide and several provinces index on different schedules or, in some years, freeze their amounts. To find the provincial or territorial figures that apply to you, use the income tax package and [Form 428](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-42800-provincial-territorial-tax.html) for the province or territory where you resided on December 31 of the tax year.
No 2027 federal tax bracket threshold, basic personal amount, or indexing factor is stated in this guide, because none had been published by the Canada Revenue Agency as of October 30, 2026. No provincial or territorial bracket or basic personal amount is stated, because those figures were not checked province by province for this guide. The worked example uses 2026 thresholds only and is labelled as such. Recheck the Canada Revenue Agency indexation page in late November 2026, and again before using any 2027 figure: the published chart governs over any summary, including this guide.