Yes — federal and provincial income tax is withheld from every EI payment. No CPP or EI premiums are taken.
ESTIMATE
Estimates as of 3 November 2026, for information only — not legal advice or a decision on your claim; Service Canada decides eligibility and the exact amount. 2026 figures from Canada.ca: 55% benefit rate, maximum insurable earnings $68,900, maximum $729 a week (extended parental 33%, $437). Regional rates for 11 October to 7 November 2026.
Yes, all EI benefits are taxable income in Canada. Service Canada deducts federal and provincial income tax from each payment and sends you a T4E slip after the year ends. No CPP contributions or EI premiums are deducted. On the 2026 maximum of $729 a week, our estimate of the tax withheld in Ontario is about $90 a week, leaving roughly $639.
EI and tax at a glance
Income tax yes; CPP and EI premiums no.
T4E tax slipline 11900 on your return0% CPP/EI on benefits30% clawback rate
Compare EI with your normal take-home pay
Open the Ontario take-home pay calculator to see your 2026 pay after federal and Ontario tax, CPP and EI premiums — the number EI is really replacing.
Withholding is based on your weekly benefit as if it continued all year. Using 2026 federal and Ontario rates with the basic personal amounts (and the Ontario Health Premium), the estimate is:
EI / week
Annualized
Tax withheld / week (est.)
Rate
Net / week
$300
$15,600
$0
0.0%
$300
$400
$20,800
$16
4.1%
$384
$500
$26,000
$44
8.8%
$456
$600
$31,200
$63
10.5%
$537
$700
$36,400
$83
11.8%
$617
$729
$37,908
$90
12.3%
$639
Estimate for Ontario. Other provinces differ slightly; Service Canada’s actual deduction can vary. You can ask Service Canada to withhold more.
Net weekly EI after estimated withholding.
Why you might get a refund — or owe tax
Withholding treats EI as your only income, but most people also had a job earlier in the year. Example: a $64,000 earner works 8 months ($42,667), then gets 16 weeks of EI at $677 ($10,832). Their employer withheld tax as if they earned $64,000 for the full year, and Service Canada withheld about $1,245 on the EI. Because total income for the year is only $53,499, they will often get a refund in spring. The opposite happens when you go back to a well-paid job late in the year, or when severance pushes your income up — and if net income passes $86,125, the EI repayment also applies.
The T4E slip
Box 14 shows total benefits paid; box 22 the income tax deducted.
Box 7 shows the repayment rate (30%) when regular benefits may be subject to the clawback.
Benefits go on line 11900 of your return. T4Es are available in My Service Canada Account and CRA My Account by the end of February.
EI vs your pay stub
On a job, your pay stub shows income tax, CPP contributions and EI premiums. On EI only income tax comes off, so the gap between EI and your old take-home pay is smaller than the gap in gross pay. On a $64,000 salary, Ontario take-home is about $960 a week; EI after tax is about $599 — 62% of it.
Check your take-home pay before and after
The Ontario take-home pay calculator shows your 2026 net pay after tax, CPP and EI premiums — the income your EI benefit is replacing.
Yes. All EI benefits — regular, sickness, maternity, parental and caregiving — are taxable income. Federal and provincial income tax is deducted from each payment.
How much tax is taken off EI?
It depends on the weekly amount and your province. Our Ontario estimate is about $90 a week on the $729 maximum and about $44 on a $500 benefit.
Are CPP and EI premiums deducted from EI benefits?
No. Only income tax is withheld from EI benefits.
What is a T4E?
The tax slip Service Canada issues for EI benefits, showing benefits paid, tax deducted and any repayment rate.
Will I owe tax on EI at tax time?
Possibly. Withholding assumes EI is your only income. If other income for the year is high, or your net income exceeds $86,125, you may owe more; after a mid-year layoff you often get a refund.
Benefit rate and maximums: Canada.ca “EI regular benefits: How much you could receive” and the maternity/parental and sickness benefit-amount pages — 55% of average insurable weekly earnings; maximum yearly insurable earnings $68,900 from 1 January 2026 ($65,700 in 2025); maximum $729 a week ($695 in 2025); extended parental 33%, maximum $437.
Best weeks (14 to 22) and the weeks you can be paid come from the regional unemployment rate: Employment Insurance Act, Schedule I, and Service Canada’s “EI Program Characteristics” for 11 October to 7 November 2026 (rates are updated every four weeks).
2026 temporary measures: Canada Gazette Part II, SOR/2026-203 (EI Pilot Project No. 25, in force 11 October 2026) — waiting week waived and separation money not deducted for claims starting up to 9 October 2027; up to 20 extra weeks for long-tenured workers for claims starting up to 12 June 2027; only the most recent separation assessed.
Repayment (clawback): 30% of the lesser of regular benefits or net income above $86,125 (2026 = 1.25 × maximum insurable earnings). Premiums 2026: 1.63% of insurable earnings (Quebec 1.30%), maximum $1,123.07.
Tax withheld is our estimate: the weekly benefit annualized through 2026 federal and Ontario tax brackets with basic personal amounts (and the Ontario Health Premium). Service Canada’s actual deduction and your final tax depend on your total income for the year. Take-home pay while working: 2026 Ontario, from our Canada salary after tax engine.