2027 Federal Tax Brackets
Expected Brackets (Inflation Indexed)
| Income |
2026 Rate |
2027 Rate |
| First ~$56,000 |
15% |
15% |
| $56,000-$113,000 |
20.5% |
20.5% |
| $113,000-$177,000 |
26% |
26% |
| $177,000-$253,000 |
29% |
29% |
| Over $253,000 |
33% |
33% |
Brackets indexed to inflation - exact thresholds announced each fall.
Basic Personal Amount
| Income Level |
Expected 2027 BPA |
| Under ~$173,000 |
~$17,200 |
| Over ~$253,000 |
~$14,800 |
| In between |
Graduated reduction |
Key Annual Indexed Amounts
Expected 2027 Updates
| Amount |
2026 |
2027 (Est.) |
| TFSA limit |
$7,000 |
$7,000-$7,500 |
| RRSP limit |
$32,490 |
~$33,100 |
| FHSA limit |
$8,000 |
$8,000 |
| Basic personal amount |
~$16,800 |
~$17,200 |
| Employee stock option deduction threshold |
$200,000 |
$200,000 |
CPP Contributions
| Factor |
2026 |
2027 (Est.) |
| YMPE |
~$73,200 |
~$75,000 |
| YAMPE (CPP2) |
~$81,200 |
~$83,000 |
| Employee rate |
5.95% (+ CPP2) |
Similar |
| Maximum contribution |
~$4,100 + CPP2 |
~$4,200 + CPP2 |
EI Premiums
| Factor |
2026 |
2027 (Est.) |
| Maximum insurable earnings |
~$65,700 |
~$67,000 |
| Employee rate |
1.66% |
Similar |
| Maximum premium |
~$1,090 |
~$1,110 |
Capital Gains Changes
Current Rules (2024+)
| Taxpayer |
First $250K |
Above $250K |
| Individuals |
50% included |
66.67% included |
| Corporations |
66.67% |
66.67% |
| Trusts |
66.67% |
66.67% |
Planning Implications
| Strategy |
Consideration |
| Timing of sales |
Stay under $250K threshold |
| Spousal ownership |
Each gets $250K threshold |
| Corporate structure |
Different rates |
Important Continuing Policies
Home Buyers
| Program |
Status |
| FHSA |
$8,000 annual, $40,000 lifetime |
| RRSP HBP |
$60,000 limit |
| First-Time Home Buyer Tax Credit |
$10,000 (non-refundable) |
| First-Time Home Buyer Incentive |
Status varies |
Families
| Benefit |
Expected Changes |
| CCB |
Indexed to inflation |
| Child Disability Benefit |
Indexed |
| RESP CESG |
Unchanged ($500 max/year) |
| Canada Learning Bond |
Unchanged |
Climate Programs
| Program |
Expected |
| Canada Carbon Rebate |
Amounts increase |
| Rural supplement |
20% additional |
| Clean technology incentives |
Continuing |
Business Tax Changes
Small Business
| Factor |
Status |
| Small business rate |
9% federal |
| Small business limit |
$500,000 |
| Passive income threshold |
$50,000 limit |
Clean Economy Incentives
| Credit |
Rate |
| Clean Technology Investment |
30% |
| Clean Hydrogen |
15-40% |
| Carbon Capture |
37.5-60% |
| Clean Manufacturing |
Various |
Alternative Minimum Tax
Updated AMT (2024+)
| Change |
Detail |
| Rate |
Increased to 20.5% |
| Exemption |
Higher threshold |
| Capital gains inclusion |
100% under AMT |
| Charitable donations |
Limited deduction |
Who’s Affected
| Likely Affected |
Less Likely |
| Large capital gains |
Employment income only |
| Significant charitable gifts |
Standard deductions |
| Tax shelter investments |
Most middle-income |
Underused Housing Tax
Annual Filing
| Requirement |
Details |
| Who files |
Affected owners (not citizens/PR) |
| Tax rate |
1% of property value |
| Deadline |
April 30 |
| Penalties |
$5,000+ minimum |
Bare Trust Filing
Requirements Continue
| Rule |
Details |
| T3 filing |
Most bare trusts |
| Deadline |
March 31 |
| Penalties |
$25/day + up to $2,500 |
| Exemptions |
Under $50,000, etc. |
Planning Strategies for 2027
Year-End Actions
| Strategy |
Timing |
| Capital gains harvesting |
Before Dec 31 |
| Tax-loss selling |
Before Dec 31 |
| RESP contributions |
By Dec 31 for CESG |
| Charitable donations |
Before Dec 31 |
Early Year Actions
| Strategy |
Timing |
| RRSP contribution |
By March deadline |
| FHSA contribution |
Anytime |
| TFSA contribution |
Jan 1 or after |
Filing Deadlines Summary
Key 2027 Dates
| Deadline |
For |
| March 1 |
RRSP (2026 tax year) |
| March 31 |
T3 trust returns |
| April 30 |
Personal tax returns |
| April 30 |
UHTA returns |
| April 30 |
Balance owing due |
| June 15 |
Self-employed filing |
Staying Current
How to Track Changes
| Source |
Type |
| Federal budget |
Annual, usually March-April |
| Fall Economic Statement |
November |
| CRA announcements |
Ongoing |
| Finance Canada |
Policy changes |
What to Watch For
| Potential Change Area |
Impact |
| Bracket indexation |
Tax amounts |
| New credits |
Tax savings |
| Policy changes |
Planning required |
| Deadline changes |
Filing dates |