Canadian · Employment / EI
EI benefit repayment.
Sometimes called the EI "clawback": if you received regular EI benefits in a year, and your net income for that year is high enough, you may have to repay part of them on your tax return — CRA line 23500.
The threshold is 1.25× the maximum yearly insurable earnings (MIE) — $86,125 for 2026, $82,125 for 2025. Above it, you repay 30% of the lesser of your regular benefits received, or the amount your net income exceeds the threshold. Special benefits (sickness, maternity, parental, compassionate care, family caregiver) are never part of this.
Inputs
Result
Enter your net income and regular EI benefits received.
The rule in full
A repayment (often called a "clawback") applies to REGULAR EI benefits only — the ordinary layoff-type claim, plus Work-Sharing benefits. It does not apply to special benefits: sickness, maternity, parental, compassionate care, or family caregiver benefits, no matter how high your income is. When your net income for the year exceeds 1.25 times the maximum yearly insurable earnings (MIE), you repay 30% of the lesser of: the total regular benefits paid to you that year, or the amount your net income exceeds the threshold.
| Tax year | Maximum insurable earnings | Repayment threshold (1.25×) |
|---|---|---|
| 2026 | $68,900 | $86,125 |
| 2025 | $65,700 | $82,125 |
There is also a first-time-claimant exemption: if you received fewer than one week of regular benefits (including Work-Sharing) in the 10 tax years before the year in question, no repayment applies at all, however high your income is. This exists so someone who has rarely or never drawn EI before doesn't get penalized the first time they do.
Sources, read 26 September 2026: canada.ca — Line 23500, Social benefits repayment (CRA); ESDC Digest of Benefit Entitlement Principles, Chapter 25; and the ESDC maximum insurable earnings notices for 2026 (which also states the 2025 figure it replaced).
Frequently asked questions
Does this apply to EI maternity or parental benefits?
No. Special benefits — sickness, maternity, parental, compassionate care, family caregiver — are completely excluded from repayment, regardless of your income.
What "net income" does the threshold use?
Net income as defined by the Income Tax Act, roughly your line 23600, with a small number of CRA-specified adjustments the actual T1 calculation applies. This calculator takes net income as a single figure rather than rebuilding your whole return — confirm the exact number using the calculation on the back of your T4E slip or your Notice of Assessment.
I've never claimed EI regular benefits before. Do I still owe this?
No — the first-time-claimant exemption means someone who received less than one week of regular (or Work-Sharing) benefits in the preceding 10 tax years owes no repayment at all, whatever their income.
Is the repayment itself taxable, or does it reduce my taxable income?
The repayment amount isn't part of your taxable income, but it's added at line 23500 and increases your total payable (line 43500) — it works like an extra amount owed, not a deduction.
Estimate only — confirm with the CRA
This tool models the standard repayment rule. It does not rebuild your full T1 net-income calculation, and it assumes the "regular EI benefits received" figure you enter already excludes special benefits. Confirm your exact repayment using the calculation printed on your T4E slip, or with the CRA.