Updated Checked by the Tax-Services.ca editorial team How we check
The federal indexation factor, tax brackets and basic personal amount for 2027 have not been published yet (checked 31 October 2026). The latest official numbers are for 2026: a 2.0% factor, a 14% rate on the first $58,523 of taxable income and a basic personal amount of up to $16,452. The CRA usually posts the new indexation page in November.
Status on 31 October 2026: the 2026 factor, brackets and basic personal amount are published on the CRA page Adjustment of personal income tax and benefit amounts and on the CRA tax rates page for 2026. No 2027 factor, bracket or credit amount is published. Statistics Canada released the September 2026 consumer price index on 19 October 2026, but the CRA has not turned it into 2027 numbers. They will appear on the same CRA adjustment page.
How is the federal indexation factor set?
Section 117.1 of the Income Tax Act sets the rule. The factor is the average consumer price index for the 12 months that ended on 30 September before the year, divided by the average for the 12 months before that, minus one. It is rounded to the nearest one-thousandth, which means a factor like 2.0%. Any adjusted amount that is not a whole dollar is rounded to the nearest dollar.
Two things follow. The factor compares two 12-month averages, so a single month’s inflation rate on the news does not give it. And the CRA applies the formula and posts the result, so a 2027 factor printed anywhere else before that is a guess. We do not print one.
What did indexation do from 2023 to 2026?
The CRA adjustment page lists the factors and the resulting amounts. The first bracket column below shows where the 20.5% bracket starts, which is the top of the lowest bracket.
| Year | Indexation factor | 20.5% bracket starts above | 33% bracket starts above | Basic personal amount, maximum | Basic personal amount, minimum |
|---|---|---|---|---|---|
| 2023 | 6.3% | $53,359 | $235,675 | $15,000 | $13,520 |
| 2024 | 4.7% | $55,867 | $246,752 | $15,705 | $14,156 |
| 2025 | 2.7% | $57,375 | $253,414 | $16,129 | $14,538 |
| 2026 | 2.0% | $58,523 | $258,482 | $16,452 | $14,829 |
| 2027 | Not published yet | Not published yet | Not published yet | Not published yet | Not published yet |
The maximum basic personal amount applies at lower incomes. It shrinks to the minimum for people whose income reaches the 33% bracket. The lowest federal rate was 15% to 30 June 2025 and 14% from 1 July 2025, which the CRA shows as a blended 14.5% for the whole of 2025. It is 14% for 2026. The other rates stayed at 20.5%, 26%, 29% and 33%. For older years see the federal tax brackets by year.
What gets indexed, and what does not?
The CRA adjustment page lists what moves with the factor:
- The thresholds of the 20.5%, 26%, 29% and 33% brackets.
- The basic personal amount and the spouse, eligible dependant, age, disability, Canada employment and Canada caregiver amounts.
- The medical expense and child care expense thresholds and the OAS repayment threshold.
- The TFSA annual limit, rounded to the nearest $500, and the lifetime capital gains exemption.
- Benefit amounts such as the Canada child benefit and the Canada Workers Benefit.
Bracket thresholds and most credits take effect on 1 January. Income-tested benefits, including the Canada Groceries and Essentials Benefit, change on 1 July. The CRA notes that indexation of the Canada Groceries and Essentials Benefit resumes in 2027, after the 25% increase that started in July 2026. The tax rates themselves are not indexed. They are set in law.
What was a 2.0% factor worth to a taxpayer?
A worked example shows how the pieces add up, using 2026 rules. The 2026 factor lifted the basic personal amount by $323, from $16,129 to $16,452. At the 14% credit rate that is worth $45.22 of federal tax. It also moved the 20.5% bracket start up by $1,148, from $57,375 to $58,523. Income between the two lines is now taxed at 14% instead of 20.5%, which saves up to $74.62, a 6.5 percentage point gap on $1,148.
Add them and a person with $100,000 of taxable income saves up to $119.84 of federal tax from the 2026 indexation, compared with the 2025 thresholds and amounts at the 2026 rate. We checked this with the site engine. It is our calculation, not an official figure, and it covers federal tax only. Each extra $100 of basic personal amount saves $14, and each $100 that moves out of the 20.5% bracket saves $6.50. When the 2027 factor lands, you can scale the same arithmetic.
Do the provinces follow the federal factor?
No. Each province sets its own brackets and credits, and Quebec runs its own tax system. Two cases already differ for 2027.
- British Columbia has paused indexation of its brackets and credits for the 2027 to 2030 tax years, so its thresholds stay at 2026 levels while the federal ones normally move. See the BC indexation pause explained.
- Manitoba did not index its brackets for 2026. They remain 10.8%, 12.75% and 17.4% at $47,000 and $100,000. See Manitoba’s 2027 credits.
For any other province, check its own tax page when the new year starts. Your provincial tax is added to the federal tax on one return, so a stalled provincial bracket and a moving federal one can pull in different directions.
What changes on your paycheque when the 2027 numbers land?
Higher bracket thresholds mean less of your income is taxed at the higher federal rates. A higher basic personal amount means a bigger credit against federal tax. Both lower the tax withheld, if your employer’s payroll software uses them. When your employer’s software loads the new tables is up to the employer, and we cannot say how large the change will be until the factor is published. Other payroll items move on their own rules: the 2027 CPP and EI figures are already confirmed and are on the 2026 vs 2027 tax numbers page.
What can you do now?
- Plan with 2026 amounts. They are the only official ones.
- Try the take-home pay 2027 preview. It is a scenario tool. It keeps the 2026 thresholds or moves them by a percentage you choose, holds BC at 2026 amounts, and uses the confirmed 2027 CPP and EI figures. It is not a forecast.
- Use the take-home pay calculator for 2026 rules and the marginal tax rate calculator to see where the next dollar is taxed.
- Read the 2027 tax questions page for the rest of next year’s numbers.
When the CRA posts the figures, open the Canada Revenue Agency: adjustment of personal income tax and benefit amounts page, then the Canada Revenue Agency: tax rates and income brackets page. The formula is in section 117.1 of the Income Tax Act. A tax professional can check your own situation.
Where does this information come from?
Rules and figures come from the Canada Revenue Agency page Adjustment of personal income tax and benefit amounts, the CRA tax rates pages for 2025 and 2026, and section 117.1 of the Income Tax Act on the Justice Laws website. The BC pause comes from the British Columbia tax rates page. Checked on 31 October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, we collect information from open sources, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the full disclaimer.
Frequently asked questions
When will the 2027 federal tax brackets be published?
As of 31 October 2026 the CRA had not published the 2027 federal brackets, basic personal amount or indexation factor. The CRA usually posts them in November on its page for adjustment of personal income tax and benefit amounts. Bracket thresholds and most credits take effect on 1 January.
How is the federal indexation factor calculated?
Under section 117.1 of the Income Tax Act, it is the average consumer price index for the 12 months ending 30 September, divided by the average for the 12 months before, minus one. The result is rounded to the nearest one-thousandth, and amounts are rounded to the nearest dollar.
What was the federal indexation factor for 2026?
The CRA lists 2.0% for 2026, after 2.7% for 2025, 4.7% for 2024 and 6.3% for 2023. The 2026 factor moved the 20.5% bracket start to $58,523 and the maximum basic personal amount to $16,452.
Does British Columbia index its tax brackets for 2027?
No. British Columbia paused indexation of its brackets and non-refundable credits for the 2027 to 2030 tax years, so they stay at 2026 levels and resume for 2031. Federal brackets are separate and are indexed by the federal factor.
Can I trust a 2027 federal bracket table I find online?
Treat it as a guess until the CRA posts the 2027 numbers. Only the CRA publishes the factor, and it depends on consumer price index averages that sites can only estimate. Check the CRA adjustment page and the date on the table you are reading.