Short Answer
If your net income for the year exceeds $65,700 (2026 threshold), you may have to repay part of any regular EI benefits you received. The repayment is 30% of the lower of your EI benefits or the excess income above the threshold.
This is officially called the Social Benefits Repayment and appears on line 42200 of your T1 return.
Who Is Subject to EI Repayment
| Condition | Subject to repayment? |
|---|---|
| Received regular EI in the tax year | Yes, if income exceeds threshold |
| Received fishing EI benefits | Yes |
| First-time EI claimant (no regular EI in 10 years) | No — exempt |
| Received maternity EI | No — exempt |
| Received parental EI | No — exempt |
| Received EI sickness benefits | No — exempt |
| Received compassionate care or caregiving EI | No — exempt |
The exemption for first-time claimants is one of the most overlooked rules. If this is your first time receiving regular EI in the past 10 years, you owe nothing regardless of income.
The 2026 Repayment Threshold
| Year | Maximum Insurable Earnings | Repayment threshold |
|---|---|---|
| 2023 | $61,500 | $61,500 |
| 2024 | $63,200 | $63,200 |
| 2025 | $65,700 | $65,700 |
| 2026 | $65,700 | Indexed — check CRA for confirmed figure |
Note: The threshold equals the annual maximum insurable earnings for the year, which CRA indexes periodically.
How to Calculate Your Repayment
Formula: Repayment = 30% × lesser of (EI benefits received) or (net income − threshold)
Example A: Repayment applies
| Item | Amount |
|---|---|
| Net income | $78,000 |
| Threshold | $65,700 |
| Excess income | $12,300 |
| EI benefits received | $9,500 |
| Lesser amount | $9,500 (EI is lower) |
| Repayment owing | $2,850 (30% × $9,500) |
Example B: No repayment
| Item | Amount |
|---|---|
| Net income | $55,000 |
| Threshold | $65,700 |
| Excess income | None — below threshold |
| Repayment owing | $0 |
Example C: First-time claimant, high income
| Item | Amount |
|---|---|
| Net income | $90,000 |
| First-time claimant in 10 years | Yes |
| Repayment owing | $0 — exempt |
What Income Counts Toward the Threshold
CRA uses your net income from line 23600 of your T1 return. This includes:
| Income type | Included in net income? |
|---|---|
| Employment income | Yes |
| Self-employment income | Yes |
| RRSP withdrawals | Yes |
| Pension income | Yes |
| Investment income (dividends, interest) | Yes |
| TFSA withdrawals | No |
| Capital gains (included amount) | Yes |
| Rental income (net) | Yes |
| EI benefits themselves | Yes |
This is why TFSA withdrawals are often useful for EI recipients — they are not counted in net income and do not push you toward the clawback threshold.
How to Reduce or Avoid Repayment
| Strategy | How it helps |
|---|---|
| RRSP contribution | Reduces net income on line 23600 |
| TFSA withdrawals instead of RRSP | Not counted in net income |
| Delay bonus income to next year | Keeps current-year income below threshold |
| Maximize deductions (union dues, childcare, etc.) | Lowers net income |
| Income splitting where eligible | Reduces your individual net income |
If you are approaching the threshold and have RRSP room, making a contribution before the RRSP deadline reduces net income and may eliminate or reduce the repayment.
How Is This Reported and Paid
- T4E slip: You receive this from Service Canada showing total EI received and any tax withheld.
- Your tax return: If repayment applies, CRA calculates it automatically based on line 23600.
- Line 42200: The repayment amount appears here and is added to any tax balance owing.
- Payment: Due by April 30 (or June 15 if self-employed, but interest-free portion is still April 30).
If the repayment is large and unexpected, you can set up a payment arrangement with CRA.