For 2027, the CPP rate drops to 5.75% a side (law), EI is 1.64% on earnings up to $70,800 (official), and Ontario's small business rate is 2.2%. Federal and Ontario brackets rise by a projected 2.6%; the CRA confirms them in mid-November 2026, and we update this page the same day.
Federal income tax
| Item | 2026 | 2027 | 2027 status |
|---|---|---|---|
| 14% bracket, up to | $58,523 | $60,045 | Projected |
| 20.5% bracket, up to | $117,045 | $120,088 | Projected |
| 26% bracket, up to | $181,440 | $186,157 | Projected |
| 29% bracket, up to | $258,482 | $265,203 | Projected |
| 33% on income above | $258,482 | $265,203 | Projected |
| Basic personal amount (maximum) | $16,452 | $16,880 | Projected |
| Basic personal amount (minimum, high incomes) | $14,829 | $15,215 | Projected |
| Canada employment amount | $1,501 | $1,540 | Projected |
| Indexation factor | 2.0% | 2.6% | Projected |
Ontario income tax
| Item | 2026 | 2027 | 2027 status |
|---|---|---|---|
| 5.05% bracket, up to | $53,891 | $55,292 | Projected |
| 9.15% bracket, up to | $107,785 | $110,587 | Projected |
| 11.16% bracket, up to | $150,000 | $150,000 | Not indexed |
| 12.16% bracket, up to | $220,000 | $220,000 | Not indexed |
| 13.16% on income above | $220,000 | $220,000 | Not indexed |
| Ontario basic personal amount | $12,989 | $13,327 | Projected |
| Surtax: 20% of Ontario tax above | $5,818 | $5,969 | Projected |
| Surtax: further 36% of Ontario tax above | $7,446 | $7,640 | Projected |
| Ontario Health Premium (maximum) | $900 | $900 | Not indexed |
| Top combined rate, ordinary income | 53.53% | 53.53% | Official |
CPP, CPP2 and EI
| Item | 2026 | 2027 | 2027 status |
|---|---|---|---|
| CPP rate, employee and employer each | 5.95% | 5.75% | Official |
| of which base / enhanced | 4.95% / 1.00% | 4.75% / 1.00% | Official |
| Self-employed CPP | 11.9% | 11.5% | Official |
| Basic exemption | $3,500 | $3,500 | Official |
| YMPE (CPP ceiling) | $74,600 | $76,700 | Projected |
| Maximum employee CPP | $4,230.45 | $4,209.00 | Projected |
| CPP2 rate | 4% | 4% | Official |
| YAMPE (CPP2 ceiling) | $85,000 | $87,400 | Projected |
| Maximum employee CPP2 | $416.00 | $428.00 | Projected |
| EI employee rate | 1.63% | 1.64% | Official |
| EI maximum insurable earnings | $68,900 | $70,800 | Official |
| Maximum employee EI | $1,123.07 | $1,161.12 | Official |
| Maximum employer EI (1.4×) | $1,572.30 | $1,625.57 | Official |
Corporations and dividends (Ontario CCPC)
| Item | 2026 | 2027 | 2027 status |
|---|---|---|---|
| Federal small business rate | 9% | 9% | Official |
| Ontario small business rate | 3.2% → 2.2% from 1 July | 2.2% | Official |
| Combined small business rate (calendar year) | 11.7% blended | 11.2% | Official |
| Small business limit | $500,000 | $500,000 | Official |
| General combined rate | 26.5% | 26.5% | Official |
| Non-eligible dividend gross-up | 15% | 15% | Official |
| Federal dividend tax credit, non-eligible | 9.0301% | 9.0301% | Official |
| Ontario dividend tax credit, non-eligible | 2.9863% | 1.9863% | Proposed |
| Top combined rate, non-eligible dividends | 47.74% | 48.89% | Proposed |
Other limits
| Item | 2026 | 2027 | 2027 status |
|---|---|---|---|
| RRSP dollar limit | $33,810 | $35,390 | Official |
| Ontario Employer Health Tax (above exemption) | 1.95% | 1.95% | Official |
| EHT exemption, eligible employers | $1,000,000 | $1,000,000 | Official |
| Ontario HST | 13% | 13% | Official |
How we project 2027
Federal brackets and credits are indexed each year by the change in the average consumer price index for the 12 months ending 30 September. Statistics Canada has published October 2025 to August 2026; the 12-month average to date is about 2.6% above the prior period, and September would have to move sharply to change the rounded result. Ontario indexes its brackets, credits and surtax thresholds the same way using Ontario prices, except the $150,000 and $220,000 thresholds, which are fixed.
The 2027 YMPE comes from growth in average weekly earnings and is published by the CRA in early November; our figure is an estimate. The YAMPE is 1.14 times the YMPE, rounded down to the nearest $100. Everything marked official comes from the Canada Employment Insurance Commission, the CRA, enacted legislation (Bill C-30 for CPP) or Ontario's 2026 Budget measures.
Update log
- — Page published. EI 2027 (official, CEIC 14 Sep 2026) and the 2027 CPP base-rate cut (Bill C-30, law) included. Brackets, credits and YMPE projected from CPI to August 2026.
Questions
When will the CRA publish the 2027 tax brackets?
The CRA usually publishes next year's indexed brackets and credits in mid-November, after Statistics Canada releases September inflation (20 October 2026 this year). We update this page and every Bloemet calculator as soon as the figures are out.
Is CPP going down in 2027?
Yes. Bill C-30, which received Royal Assent in June 2026, cuts the base CPP rate from 4.95% to 4.75% each for employees and employers starting 1 January 2027. The total rate on earnings up to the YMPE falls from 5.95% to 5.75% a side. CPP2 stays at 4%.
What is the 2027 EI rate?
The Canada Employment Insurance Commission set the 2027 employee rate at 1.64% of insurable earnings up to $70,800, a maximum of $1,161.12. Employers pay 1.4 times that, up to $1,625.57 per employee.
What changes for incorporated owners in Ontario?
Ontario's small business rate fell from 3.2% to 2.2% on 1 July 2026, so the combined rate is 11.2% for 2027. Ontario has also proposed cutting its dividend tax credit on non-eligible dividends from 2.9863% to 1.9863%, which raises the top rate on those dividends from 47.74% to 48.89%.
How is the 2027 indexation factor projected?
The federal factor is the average consumer price index for the 12 months to September 2026, divided by the average for the 12 months before that. With 11 of the 12 months published, the result rounds to 2.6% unless September prices move sharply. Ontario indexes with Ontario CPI over the same period.
Estimates use 2026 and 2027 federal and Ontario rates for individuals and Canadian-controlled private corporations. 2027 figures marked projected are our calculation until the CRA publishes them, and are for illustration only. They leave out many personal credits, deductions and elections. Talk to a CPA before acting on compensation, incorporation or tax decisions.