How Much Can I Earn on EI Before Repaying? The EI Benefit Repayment

Employment Insurance (EI) regular benefits have to be partly paid back at tax time if your income for the year is high enough. This is the EI benefit repayment, often called the clawback. It doesn’t affect how much you can earn while on EI week to week; for that, see how much can I earn while on EI.

The rule

• Your net income for the year is above 1.25 times the maximum insurable earnings ($86,125 for 2026).
• You repay 30% of the lesser of your net income above the threshold and the regular (and fishing) benefits you received in the year.

The threshold by year:

Sources: Employment Insurance Act, s. 145; CRA, line 23500.

“Net income” here is line 23400 of your return, with a few adjustments (for example, minus universal child care and RDSP income, plus some repayments). The repayment is worked out on your return, deducted on line 23500 and added to what you owe.

Who doesn’t have to repay

• Special benefits (maternity, parental, sickness, caregiving and compassionate care) aren't subject to the repayment.
• You don't repay anything if you received less than 1 week of regular or fishing benefits in the 10 tax years before the year being taxed.

For most people this covers the first tax year of their first claim; a claim that runs past December 31 isn’t exempt in its second year. See first time claiming EI.

Your T4E slip shows your repayment rate in box 7: 30% if the repayment can apply to you.

Examples (2026)

In B, the repayment is capped by the benefits received: 30% of $6,000. If A had received less than 1 week of regular benefits in the previous 10 tax years, the repayment would be $0.

Lowering the repayment

The repayment depends on net income, so anything that lowers net income lowers it:

• RRSP contributions reduce net income for the year you deduct them.
• Other deductions that reduce line 23400, such as union dues, child care expenses and deductible moving expenses, where you qualify.
• TFSA withdrawals aren’t income, so they don’t raise net income; RRSP withdrawals do.

Paying it

The repayment is part of your tax balance, due by April 30 (even if you’re self-employed and your return is due June 15). If you can’t pay it all, you can set up a payment arrangement with the CRA. If you expect to owe, you can ask Service Canada to withhold more tax from your benefits.

Related pages

• How EI works
• First time claiming EI
• EI and rental income
• Self-employed while on EI
• EI sickness benefits
• EI caregiving benefits
• EI contribution rates