# Canada tax brackets 2027: status, timing and what is already known

Source: https://canadataxdesk.com/tax-rates/canada-tax-brackets-next-year
Publisher: Canada Tax Desk (canadataxdesk.com), independent editorial site
Topic: Tax Rates and Brackets
Last updated: 2026-10-20

> The Canada tax brackets for 2027 are not yet announced as of October 20, 2026. The CRA usually publishes the indexed federal thresholds and the 2027 basic personal amount in November, after the September consumer price index is released. The rates themselves are already set: the lowest federal rate stays at 14% under current law, with 20.5%, 26%, 29% and 33% above it.

## Key facts

- 2027 federal thresholds: Not yet announced (usually November 2026)
- Lowest federal rate for 2027: 14% under Bill C-4
- 2026 federal indexing factor: 2.0%
- BC brackets for 2027: Frozen at 2026 levels (BC Budget 2026)
- 2027 RRSP dollar limit: $35,390 (already published)

## What are the 2027 tax brackets in Canada?

The CRA has not published the 2027 tax brackets for Canada yet. As of October 20, 2026, neither the 2027 federal thresholds nor the 2027 basic personal amount had been released, so the current federal figures are still the 2026 ones.

What is fixed is the rate structure. Bill C-4 set the lowest federal rate at 14% for 2026 and later years, so unless Parliament changes the law, 2027 will again use five federal rates: 14%, 20.5%, 26%, 29% and 33%. Only the dollar thresholds between those rates will move, by an indexing factor tied to inflation.

Until the 2027 table appears, the brackets that matter for your next return are the 2026 ones. The return you file by April 30, 2027 covers 2026 income, and every 2026 threshold is on our [2026 federal and provincial brackets page](https://canadataxdesk.com/tax-rates).

## How is indexation calculated for the 2027 thresholds?

Indexation is the automatic yearly increase in bracket thresholds and many credit amounts so that inflation alone does not push people into higher bands. The federal factor compares average consumer prices over two 12-month periods, each ending on September 30.

1. Statistics Canada publishes the September consumer price index in October.
2. The average monthly CPI for October 2025 to September 2026 is divided by the average for October 2024 to September 2025.
3. The percentage increase, rounded to one decimal place, becomes the 2027 indexing factor.
4. Each 2026 threshold and indexed credit amount is multiplied by 1 plus that factor and rounded to the dollar.

For 2026 the federal factor was 2.0%, which is how the first threshold rose from $57,375 to $58,523. Provinces that index use their own factor: 2.2% for British Columbia and 1.9% for Ontario in 2026, and 2.05% for Quebec, which uses a Quebec CPI that excludes alcohol, tobacco and cannabis.

## What might the 2027 thresholds look like? An illustration

The table below is an illustration, not a forecast. It applies three possible indexing factors to the published 2026 federal figures to show the size of change to expect. The real 2027 numbers will come only from the CRA.

| Amount | 2026 official | If factor is 1.5% | If factor is 2.0% | If factor is 2.5% |
| --- | --- | --- | --- | --- |
| Top of 14% band | $58,523 | $59,401 | $59,693 | $59,986 |
| Top of 20.5% band | $117,045 | $118,801 | $119,386 | $119,971 |
| Top of 26% band | $181,440 | $184,162 | $185,069 | $185,976 |
| Top of 29% band | $258,482 | $262,359 | $263,652 | $264,944 |
| Basic personal amount (maximum) | $16,452 | $16,699 | $16,781 | $16,863 |

Illustration only: 2026 federal amounts multiplied by sample indexing factors (not official 2027 figures)

Method: each 2026 amount multiplied by 1.015, 1.020 or 1.025 and rounded to the nearest dollar. A difference of half a percentage point in the factor moves the first threshold by roughly $290, so small inflation changes have a modest effect on most people's tax.

## When does the CRA announce 2027 brackets?

Based on the pattern of past releases, the CRA posts the next year's indexed brackets and amounts in November. Several related publications follow in a predictable order.

- **CRA 2027 tax brackets and indexed amounts**: usually November 2026, on the CRA's tax rates and brackets pages.
- **CPP and CPP2 earnings ceilings for 2027**: not yet announced; usually published in early November.
- **2027 TFSA dollar limit**: not yet announced; usually confirmed in November with indexation.
- **Quebec parameters**: the Quebec Ministère des Finances published its 2026 parameters in November 2025, and a 2027 version is expected on the same schedule.
- **January 2027 payroll tables (T4127 and T4032)**: take effect with the first pay of 2027.

## What is already known for 2027?

A few 2027 numbers and rules are already published, even though the federal thresholds are not. These are the ones worth knowing now.

| Item | 2027 status | Source |
| --- | --- | --- |
| Lowest federal rate | 14% (law sets 14% for 2026 and later) | Bill C-4, Finance Canada report, June 2026 |
| RRSP dollar limit | $35,390 | CRA limits page |
| BC brackets and credits | Held at 2026 levels for 2027 to 2030 | BC Budget 2026 |
| Top-up tax credit | Continues at 1% above the first threshold through 2030 | Finance Canada |
| TFSA limit, YMPE, basic personal amounts 2027 | Not yet announced | CRA |

2027 figures already published as of October 2026

The British Columbia change is the biggest known shift. BC Budget 2026 paused indexation of provincial brackets and non-refundable credits for the 2027 to 2030 tax years, so the 5.6% band will still end at $50,363 in 2027. Details are on our [BC tax brackets page](https://canadataxdesk.com/tax-rates/bc-tax-brackets).

### Ontario tax brackets 2027

Ontario indexes its thresholds with an Ontario CPI factor (1.9% for 2026), except for the $150,000 and $220,000 thresholds, which are fixed in law and stay the same each year. The 2027 Ontario figures are not yet announced and normally appear with the federal release. See [Ontario tax brackets](https://canadataxdesk.com/tax-rates/ontario-tax-brackets) for the current table.

## Will the lowest rate stay at 14% in 2027?

Yes, under current law. Bill C-4, which received Royal Assent on March 12, 2026, set the lowest rate at 14% for 2026 and subsequent tax years, so no further step is scheduled for 2027. Our page on the [14% federal rate](https://canadataxdesk.com/tax-rates/lowest-tax-rate-14-percent) explains how the cut was phased in.

A federal budget or fall economic statement can still propose changes, and any proposal would need legislation. If a change is announced we will label it as proposed until it becomes law.

## Where to check the 2027 brackets once published

Use official sources first. The CRA's tax rates and brackets pages will add a 2027 table, and the January 2027 T4127 Payroll Deductions Formulas will list every federal and provincial threshold and personal amount used for withholding.

1. Check the CRA page titled Canadian income tax rates for individuals in late November.
2. Compare your January 2027 pay stub with December's; the tax withheld should change slightly as new tables apply.
3. Update your Form TD1 if your credits change, for example a new dependant or tuition.
4. Read the CRA filing-season news release in early 2027 for anything new, which we summarize on our [2027 filing season changes page](https://canadataxdesk.com/filing/tax-season-whats-new).

## Common questions

### Are the 2027 tax brackets out yet?

Not as of October 20, 2026. The CRA usually publishes the 2027 federal brackets and indexed amounts in November, once the September inflation figures are available.

### What will the basic personal amount be in 2027?

The 2027 basic personal amounts are not yet announced. The federal amount is indexed each year; for 2026 it is $16,452, and a 2% factor would put it near $16,781, but only the CRA's release is official.

### Do 2027 brackets affect the return I file in 2027?

No. The return filed in spring 2027 reports 2026 income and uses 2026 brackets. The 2027 brackets change payroll withholding from January 2027 and apply to the return you file in 2028.

### Why are BC tax brackets not changing in 2027?

BC Budget 2026 paused indexation of provincial brackets and non-refundable credits for 2027 through 2030, so they stay at 2026 levels. Federal brackets are still indexed.

### When will Quebec announce its 2027 tax brackets?

Quebec sets its own brackets. The Ministère des Finances du Québec released its 2026 parameters, including a 2.05% indexing rate, in November 2025, so the 2027 Quebec thresholds are expected around November 2026 and are not yet announced.

## Sources

- [CRA, Tax rates and income brackets for individuals](https://www.canada.ca/en/revenue-agency/services/tax/individuals/tax-rates-brackets.html)
- [CRA, T4127 Payroll Deductions Formulas, January 2026](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)
- [CRA, RRSP, DPSP, TFSA limits, YMPE and YAMPE](https://www.canada.ca/en/revenue-agency/services/tax/registered-plans-administrators/pspa/mp-rrsp-dpsp-tfsa-limits-ympe.html)
- [Government of British Columbia, Budget 2026 tax changes](https://www2.gov.bc.ca/gov/content/taxes/tax-updates/budget-changes)
- [Finance Canada, Report on the Impact of Reducing the Lowest Marginal Personal Income Tax Rate](https://www.canada.ca/en/department-finance/services/publications/report-impact-reducing-lowest-marginal-personal-income-tax-rate-non-refundable-tax-credits.html)
- [Ministère des Finances du Québec, Parameters of the Personal Income Tax System for 2026](https://cdn-contenu.quebec.ca/cdn-contenu/adm/min/finances/publications-adm/parametres/AUTEN_IncomeTax2026.pdf)