What are the projected 2027 federal tax brackets and basic personal amount?

What indexation is, and what this page projects

Each January the Canada Revenue Agency (the CRA) raises the federal tax bracket thresholds and most of the personal credit amounts by an indexation factor that the Income Tax Act ties to the Consumer Price Index, so that a year’s inflation on its own doesn’t push more of your income into a higher bracket or shrink a credit in real terms. The CRA publishes the factor and the amounts for the coming year in November, e.g. its page carrying the 2026 amounts is dated November 24, 2025, and every return for that year runs on what it publishes.

Eleven of the twelve months of the index that set the 2027 factor are published, so this page runs the Act’s formula on them, carries the one unpublished month forward at the latest published value, and states the result as projected. A projection isn’t a figure: every projected amount here sits beside the enacted 2026 amount it would replace, and the page retires the day the CRA publishes the real 2027 amounts.

The formula, in the Act’s own terms

Section 117.1 of the Income Tax Act sets the factor as A divided by B, less one, where A is the Consumer Price Index for the twelve months ending September 30 of the year before the tax year and B is the same figure for the twelve months before that. For 2027 that’s the average of October 2025 to September 2026 over the average of October 2024 to September 2025, i.e. the year to September 2026 over the year to September 2025, which is why the factor can be worked out months before the year starts.

The Act prescribes the rounding at each step, and the page follows it. Subsection 117.1(4) defines the twelve-month index as the monthly all-items index for Canada, as Statistics Canada publishes it, added up and divided by twelve and rounded to the nearest one-thousandth, and subsection 117.1(1) rounds the factor itself to the nearest one-thousandth, a half going up in both cases. Subsection 117.1(3) then rounds the amount used for a year to the nearest dollar, with a half rounding up again.

The Act lets the index be adjusted “in such manner as may be prescribed”, and no regulation doing so was found on September 23, 2026. The unadjusted series reproduces every increase the CRA has stated on its indexation page from 2023 to 2026 and, chained from the $1,000 in subsection 118(10), every Canada employment amount the CRA lists from 2015 to 2026, which is the check this page’s build runs before it will render a projected amount.

Why the chain starts from the amount in the Act, not the published one

Paragraph 117.1(1)(a) indexes the previous year’s amount as it stood before its own rounding, so the CRA carries an unrounded figure from year to year and rounds only what it publishes. Multiplying a published 2026 amount by the factor can therefore land a dollar out, e.g. the 2026 first threshold the CRA publishes as $58,523 is $58,522.50 inside the chain, because the Act’s $57,375 for 2025 times one plus the 2026 factor of 2.0% gives exactly that.

The bracket thresholds start from the amounts in subsection 117(2), which the Making Life More Affordable for Canadians Act (S.C. 2026, c. 2) restated as the 2025 thresholds for the 2025 and later tax years. The CRA’s own 2026 table confirms that reading: the $181,440 threshold comes out of the restated $177,882 times one plus 2.0% and rounds up, which a chain carrying an unrounded residue from earlier years wouldn’t have done.

The basic personal amount has two indexed pieces: the $12,298 in the description of A in subsection 118(1.1), which the CRA’s own footnote says continues to be indexed from its 2020 level, and the $15,000 for 2023 in paragraph (d) of the description of F, indexed after 2023, each rounded on its own with the enhancement the CRA lists being the difference of the two. The phase-out between them runs from the 29% threshold to the 33% threshold, so it moves with the brackets. The Canada employment amount is the $1,000 in subsection 118(10), and the chain that reproduces every year the CRA lists starts from that amount in 2007.

What’s assumed, and what isn’t on this page

Statistics Canada had published the all-items index to August 2026 (169.8, released September 14, 2026) as at September 23, 2026. The average still needs September 2026, and Statistics Canada releases the September 2026 index on October 19, 2026. The page assumes 169.8 for September 2026, says how far the factor moves if the published value differs, and lets you enter your own value in the calculator. Once Statistics Canada publishes September 2026 the assumption goes and the arithmetic runs on the published series alone, still as a projection until the CRA publishes.

The page is federal only, and it says so. Each province indexes its own brackets and credits on its own rules and, in most cases, its own index, and British Columbia has paused its indexation for the 2027 to 2030 tax years, so a projected federal factor says nothing about a provincial amount and none is projected here.

The factor also moves two federal amounts that aren’t in the table, and this page states no projected figure for either. Subsection 207.01(1) sets the TFSA dollar limit at $5,000 adjusted for each year after 2009 in the manner section 117.1 sets out, rounded to the nearest $500, so the same factor moves the limit in steps of $500. The alternative minimum tax exemption in section 127.51 is the 29% threshold for the year, so it moves with that threshold. The Canada Pension Plan and employment insurance ceilings follow rules in their own Acts, and the factor doesn’t reach them.

A worked example: the factor, then one threshold

The projected 2027 amounts, our arithmetic

Every row states our projection beside the enacted 2026 amount it would replace, and the enacted column links the calculator that renders the 2026 figures from the dataset. The CRA publishes the enacted 2027 amounts on its indexation page, and this page retires when it does.

How the arithmetic was checked

The same arithmetic reproduces every increase the CRA states for 2023, 2024, 2025, 2026 and every enacted 2026 amount below from the amount in the Act. The two tables below are that check: the factor this page computes for each year beside the increase the CRA states, and the Canada employment amount chained from the $1,000 in subsection 118(10) beside every year the CRA lists.