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Canada Tax Brackets 2027: Federal & Alberta

The 2027 rates are fixed in law: federal 14%, 20.5%, 26%, 29% and 33%[1], and Alberta 8%, 10%, 12%, 13%, 14% and 15%[2]. What changes each year is where each bracket starts, because the income thresholds are indexed to inflation. The 2027 thresholds have not been published yet; the 2026 thresholds are shown for comparison.

2027 Federal Tax Brackets

Pending The 2027 federal income thresholds are not yet announced. Expected to be announced in mid-to-late November 2026; this page updates the day it's published.

The 2027 indexation rate uses consumer prices through September 2026, which Statistics Canada releases on October 19, 2026. CRA posted the indexed federal amounts for 2025 on November 15, 2024 and for 2026 on November 24, 2025.[3, 4, 5, 6, 7]

2027 federal tax rates and taxable income ranges, with 2026 ranges for comparison
2027 rate[1]Set in law2027 taxable income2026 taxable income[8, 9]for comparison
14%Pendingexpected mid-to-late Nov 2026$0 – $58,523
20.5%$58,523 – $117,045
26%$117,045 – $181,440
29%$181,440 – $258,482
33%Over $258,482

The 2027 thresholds will be the 2026 thresholds increased by the 2027 indexation rate: Average CPI for the 12 months ending September 30, 2026, divided by the average for the previous 12 months, minus 1, rounded to the nearest 0.1%.[10] For 2026 it was 2%[8].

2027 Alberta Tax Brackets

Pending The 2027 Alberta income thresholds are not yet announced. Expected to be announced in November 2026; this page updates the day it's published.

The 2027 escalator uses Alberta consumer prices through September 2026, which Statistics Canada releases on October 19, 2026. Alberta's 2026 amounts were published in CRA's January 2026 payroll formulas (T4127, 122nd edition) by November 19, 2025.[3, 11]

2027 Alberta tax rates and taxable income ranges, with 2026 ranges for comparison
2027 rate[2]Set in law2027 taxable income2026 taxable income[9, 12]for comparison
8%Pendingexpected Nov 2026$0 – $61,200
10%$61,200 – $154,259
12%$154,259 – $185,111
13%$185,111 – $246,813
14%$246,813 – $370,220
15%Over $370,220

The 2027 thresholds will be the 2026 thresholds increased by the 2027 Alberta escalator: The percentage prescribed by regulation on or before January 1, 2027 if there is one; otherwise the lesser of 2% and the change in average Alberta CPI for the 12 months ending September 30, 2026 over the previous 12 months (never below 0%).[2] For 2026 it was 2%[12, 13].

Alberta Caps Indexation at 2%

Since 2026, Alberta's thresholds and credits rise each year by the lesser of 2% and Alberta inflation over the 12 months to September 30, unless the province sets a different rate by regulation before January 1. The cap was added by the Financial Statutes Amendment Act, 2024 (No. 2)[2, 14].

Alberta's consumer prices were 3.8% higher in August 2026 than a year earlier[15]. Whether the cap binds for 2027 depends on average prices over the 12 months to September 30, 2026. When inflation runs above the cap, thresholds and credits fall behind prices, so more of your income is taxed at higher rates in real terms: an automatic tax increase that needs no new vote. Federal indexation has no such cap[10].

Already Set for 2027

  • EI: 1.64% of insurable earnings up to $70,800, for a maximum employee premium of $1,161.12[16, 17, 18] (announced September 14, 2026). EI rates 2027 →
  • CPP: 5.95% each for employees and employers on earnings between $3,500 and the YMPE, plus 4% CPP2 above it (set in law)[19]. The 2027 YMPE is expected around November 1, 2026. CPP rates 2027 →
  • RRSP: the 2027 dollar limit is $35,390, up from $33,810[20] (announced by CRA on October 30, 2025).
  • Credit rates: non-refundable credits such as the basic personal amount are worth 14% federally and 8% in Alberta (set in law)[1, 2, 21].
  • Consolidated Alberta caregiver credit: The caregiver credit and the infirm dependant credit are merged into one non-refundable Alberta caregiver credit. It can be claimed for an infirm spouse or common-law partner or an infirm dependant aged 18 or older, but no longer for healthy parents or grandparents over 65 who live with the taxpayer. The government says the credit amount and phase-out threshold stay the same as the existing caregiver credit, and that the change aligns Alberta with the federal government, Ontario and BC. In force January 1, 2027; royal assent March 26, 2026[22, 23].

Basic Personal Amounts 2027

Federal BPA

Pendingexpected mid-to-late Nov 2026

2026: $16,452[8]

Alberta BPA

Pendingexpected Nov 2026

2026: $22,769[13]

How the 2027 basic personal amounts are set →

See Where Your Tax Dollars Go

Brackets are only the start. The calculator works out your federal and Alberta income tax, CPP and EI, and shows where the money goes. It uses 2026 rates until every 2027 figure is published.

Open the tax calculator

Frequently Asked Questions

What are the federal tax brackets for 2027?

The 2027 federal rates are fixed in law at 14%, 20.5%, 26%, 29% and 33%. The income thresholds are indexed to inflation and are expected in mid-to-late November 2026. In 2026 the higher rates start at $58,523, $117,045, $181,440 and $258,482.

What are the Alberta tax brackets for 2027?

Alberta's 2027 rates are fixed in law at 8%, 10%, 12%, 13%, 14% and 15%. The thresholds rise by the lesser of 2% and Alberta's inflation over the 12 months to September 30, 2026, unless the province prescribes a different rate, and are expected in November 2026. In 2026 the higher rates start at $61,200, $154,259, $185,111, $246,813 and $370,220.

Will tax brackets go up in 2027?

Both sets of thresholds are indexed to inflation. Federal thresholds move with Canada's consumer price index over the 12 months to September 30, 2026. Alberta's move by the lesser of 2% and Alberta's inflation over the 12 months to September 30, 2026, unless the province prescribes a different rate. For context, Alberta's consumer prices were 3.8% higher in August 2026 than a year earlier.

When will the 2027 tax brackets be announced?

Federal thresholds are expected in mid-to-late November 2026 and Alberta's in November 2026. The 2027 indexation rate uses consumer prices through September 2026, which Statistics Canada releases on October 19, 2026. CRA posted the indexed federal amounts for 2025 on November 15, 2024 and for 2026 on November 24, 2025. Alberta's 2026 amounts were published in CRA's January 2026 payroll formulas (T4127, 122nd edition) by November 19, 2025.

What is the RRSP limit for 2027?

The 2027 RRSP dollar limit is $35,390, up from $33,810 in 2026. CRA announced it on October 30, 2025.

Sources

Each bracketed number on this page links to the document below that contains the figure, with the table, row or section. Checked against these documents on September 28, 2026.

  1. [1]Department of Justice Canada (Justice Laws Website), Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), section 117 (consolidated; current to 2026-09-21, last amended 2026-06-18). Where: s. 117(2)(a) to (e), "Rates for taxation years after 2024"; s. 117(2)(a) (14%).
  2. [2]Alberta King's Printer, Alberta Personal Income Tax Act, RSA 2000, c A-30 (office consolidation, current as of December 11, 2025). Where: s. 6.1(1)(a)(i) to (v); s. 44.2(0.1), (0.2), (0.3) and (3); s. 44.2(0.1)(b)(i) ("the lesser of (i) 2%, and (ii) …"); s. 4 ("The specified percentage for the 2025 taxation year and subsequent taxation years is 8%") and s. 8(1).
  3. [3]Statistics Canada, The Daily — Consumer Price Index, August 2026, published September 14, 2026. Where: Section "Next release" ("The CPI for September will be released on Monday, October 19.").
  4. [4]Internet Archive (capture of a Canada Revenue Agency page), CRA "Indexation adjustment for personal income tax and benefit amounts", captured 2024-11-07. Where: Table "Indexation increase per year" ends at 2024.Note: The latest year shown is 2024.
  5. [5]Internet Archive (capture of a Canada Revenue Agency page), CRA "Indexation adjustment for personal income tax and benefit amounts", captured 2024-11-19. Where: Page's modified date (2024-11-15); table "Indexation increase per year" includes 2025.Note: The first capture that shows the 2025 column; the page's modified date is 2024-11-15.
  6. [6]Internet Archive (capture of a Canada Revenue Agency page), CRA "Indexation adjustment for personal income tax and benefit amounts", captured 2025-11-21. Where: Table "Indexation increase per year" ends at 2025.Note: The latest year shown is still 2025.
  7. [7]Internet Archive (capture of a Canada Revenue Agency page), CRA "Indexation adjustment for personal income tax and benefit amounts", captured 2025-11-25. Where: Page's modified date (2025-11-24); table "Indexation increase per year" includes 2026.Note: The first capture that shows the 2026 column; the page's modified date is 2025-11-24.
  8. [8]Canada Revenue Agency, Indexation adjustment for personal income tax and benefit amounts, last modified March 12, 2026. Where: Table "Tax bracket thresholds", column 2026; Table "Indexation increase per year", column 2026 ("2.0 %"); Table "Amounts relating to non-refundable tax credits", row "Basic personal amount (maximum) …", column 2026.Note: Columns 2023 to 2026 on 2026-09-28; no 2027 column.
  9. [9]Canada Revenue Agency, T4127-JAN Payroll Deductions Formulas, 122nd Edition (effective January 1, 2026), Table 8.1 "Rates (R, V), income thresholds (A), and constants (K, KP) for 2026" (CSV). Where: Row "Federal A"; Row "AB A".
  10. [10]Department of Justice Canada (Justice Laws Website), Income Tax Act, section 117.1 (annual adjustment; consolidated, current to 2026-09-21). Where: s. 117.1(1)(b)(ii), formula (A/B) − 1.
  11. [11]Internet Archive (capture of a Canada Revenue Agency page), CRA "T4127-JAN Payroll Deductions Formulas - 122nd Edition - Effective January 1, 2026" landing page, captured 2025-11-20. Where: Landing page, "Last update: 2025-11-19".Note: Earliest capture from October 1, 2025 onward; the page reads "Last update: 2025-11-19".
  12. [12]Government of Alberta, Personal income tax, published March 4, 2026. Where: Table 1. 2025 and 2026 tax brackets, column "2026 tax brackets"; Overview ("In 2026, thresholds and credit amounts will rise by 2%").
  13. [13]Canada Revenue Agency, T4127-JAN Payroll Deductions Formulas, 122nd Edition (effective January 1, 2026), "Other rates and amounts" (CSV). Where: Row "AB", column "Index rate"; Row "AB", column "Basic amount".
  14. [14]Alberta King's Printer, Financial Statutes Amendment Act, 2024 (No. 2), SA 2024, c 15 (Bill 32), assented to December 5, 2024, published December 5, 2024. Where: s. 2(11)(a), adding s. 44.2(0.1) for calendar years after 2025.
  15. [15]Statistics Canada, The Daily — Consumer Price Index, August 2026, Table 2: Consumer Price Index for the provinces and for Whitehorse, Yellowknife and Iqaluit – Not seasonally adjusted, published September 14, 2026. Where: Row "Alberta", column "August 2025 to August 2026" (% change); index 172.6 in August 2025 and 179.2 in August 2026 (2002=100).
  16. [16]Employment and Social Development Canada, Canada Employment Insurance Commission confirms 2027 Employment Insurance premium rate (news release), published September 14, 2026. Where: Opening paragraph ("The rate for 2027 is set at $1.64 per $100 of insurable earnings for employees"); Paragraph beginning "The Commission also announced that the maximum insurable earnings" ("will increase by $38.05 to $1,161.12").
  17. [17]Canada Employment Insurance Commission (Employment and Social Development Canada), Summary of the 2027 Actuarial Report on the Employment Insurance Premium Rate, published September 14, 2026, last modified September 17, 2026. Where: Section "2027 premium rate" and Table 2; Section "Maximum Insurable Earnings" ("The MIE for 2027 is $70,800"); Table 2: Maximum Amounts of Premiums Payable, row "Workers".
  18. [18]Canada Revenue Agency, EI premium rates and maximums. Where: Table "Federal EI premium rates and maximums", row 2027, column "Rate (%)"; Table "Federal EI premium rates and maximums", row 2027.Note: The 2027 row (marked 'New') was present on 2026-09-28, although the page's 'Date modified' still read 2025-09-16.
  19. [19]Department of Justice Canada (Justice Laws Website), Canada Pension Plan, R.S.C. 1985, c. C-8 (consolidated; current to 2026-09-21, last amended 2024-12-17). Where: Schedule 1 (4.95%) plus Schedule 2, First Additional Contribution Rates (1.0%), rows for 2027; s. 11.2 and Schedule 2, Second Additional Contribution Rates, row "2024 and each subsequent year" (4.0%); s. 20(2) ("For each year after 1997 the amount of a Year's Basic Exemption is $3,500").
  20. [20]Canada Revenue Agency, What's new – Savings and pension plan administration, last modified September 1, 2026. Where: Section "General", entry dated 2025-10-30 ("2027 registered retirement savings plan (RRSP) limit will be $35,390"); Section "General", entry dated 2024-11-01 ("2026 registered retirement savings plan (RRSP) limit will be $33,810").
  21. [21]Department of Justice Canada (Justice Laws Website), Income Tax Act, section 248 (definitions; consolidated, current to 2026-09-21). Where: s. 248(1), definition of "appropriate percentage" (the lowest percentage in s. 117(2)).
  22. [22]Government of Alberta, Implementing Budget 2026, published April 1, 2026. Where: Status line (royal assent March 26, 2026) and "Key changes", heading "Alberta Personal Income Tax Act".
  23. [23]Legislative Assembly of Alberta, Bill 17, Fiscal Measures Statutes Amendment Act, 2026 (bill text). Where: s. 2(2)(a) (repeals s. 8(1)(d) and replaces s. 8(1)(e)) and s. 2(4) (in force January 1, 2027).