Federal Tax Brackets Canada 2027: Rates and Income Thresholds
Quick Answer
The CRA has not yet published the 2027 federal tax brackets or the 2027 indexation factor. They are normally announced in the second half of November. Until then, the brackets in force are the 2026 ones below, and they are the ones that apply to the tax return you file in spring 2027. Last updated: November 8, 2026. We will replace this note with the official 2027 figures as soon as the CRA publishes them.
2027 Federal Tax Brackets
| Taxable income | Federal rate |
|---|---|
| Not yet published by the CRA | The five rates (14%, 20.5%, 26%, 29%, 33%) are set in law; the income thresholds are indexed each year. |
2026 Federal Tax Brackets (for reference)
The 2026 brackets were indexed by 2.0%. Your 2026 return, filed in 2027, uses these thresholds.
| Bracket starts at (taxable income) | Federal rate |
|---|---|
| $0 | 14% |
| $58,523 | 20.5% |
| $117,045 | 26% |
| $181,440 | 29% |
| $258,482 | 33% |
How the 2027 Brackets Compare With 2026
The thresholds are adjusted every year for inflation using an indexation factor set by the CRA. The 2026 factor was 2.0%. The 2027 factor will be added here once it is announced; we do not publish estimates.
Source
Provincial and Territorial Rates
Your total tax combines federal and provincial rates. See your province:
- Ontario marginal tax rate
- Alberta marginal tax rate
- British Columbia marginal tax rate
- Manitoba marginal tax rate
- New Brunswick marginal tax rate
- Newfoundland and Labrador marginal tax rate
- Nova Scotia marginal tax rate
- Prince Edward Island marginal tax rate
- Quebec marginal tax rate
- Saskatchewan marginal tax rate
Related Tools and Guides
Frequently Asked Questions
What are the federal tax brackets for 2027?
The CRA has not published them yet. The federal rates stay at 14%, 20.5%, 26%, 29% and 33%, but the income thresholds will be indexed. For reference, the 2026 thresholds start at $58,523, $117,045, $181,440 and $258,482 for the four higher rates.
When does the CRA announce the new brackets?
The CRA usually publishes the next year's indexation factor and brackets in the second half of November. Check the CRA page linked in the sources; this page will be updated when the figures appear.
Which brackets apply when I file in spring 2027?
The 2026 brackets. A return filed in spring 2027 reports income earned in 2026, so it uses the 2026 thresholds. The 2027 brackets apply to the return you file in 2028.
Do provinces use the same indexation?
No. Each province and territory sets its own brackets and indexation, so provincial thresholds change on their own schedule. See the provincial pages above.
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- Yukon tax brackets and marginal rates 2026
- Northwest Territories tax brackets and marginal rates 2026
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If you want to know other articles similar to Federal Tax Brackets Canada 2027: Rates and Income Thresholdsy ou can visit the category Tax Planning and Optimization.
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