Are maternity or parental EI benefits tax-free?
EI Parental Benefits and Your Tax Return. Understand the Canadian tax rules, records to gather and practical next steps before preparing your return.
Request a quote →Arsen Accounting Services · Prepared October 29, 2026
Employees and commission earners: 10 tax questions · Browse the 100-article collection
The direct answer
No. EI benefits are taxable income, including maternity and parental benefits. The tax withheld is a payment toward your final liability, not a guarantee that nothing more is due. Special benefits have different repayment rules from regular EI benefits. On the return, certain benefit amounts appear in an additional reporting line but must not be added to total income twice.
Treat leave as an income change
A year of parental leave may include salary, EI benefits and an employer top-up. Gather each source separately and record when payments were received. A lower annual income does not mean every payment is tax-free. It also helps the preparer review related family information without confusing employment benefits, child benefits and employer payments.
Compare withholding with the full-year result
Tax deducted from individual payments may not equal the final tax calculated on all income. Keep the benefit statement and employment slips, and check for overlap or missing documents. If you received a repayment notice or corrected slip, provide it as well. Do not simply remove an amount because the cash was later repaid.
What to gather before the review
- T4E, T4 and employer top-up statements
- Any corrected slips or repayment notices
- Family-status and child-care information relevant to the year
Does receiving parental benefits guarantee a refund?
No. The result depends on the complete return and tax already withheld. A preparer needs the benefit income, other earnings and applicable claims before estimating whether there is a refund or balance owing.
Your next step
Provide the T4E, any repayment information and employment income received in the same year.
Related reading
Official sources
EI and repayment of benefits at income tax time · Line 11905 – Employment insurance maternity and parental benefits, and provincial parental insurance plan benefits
Sources checked for this collection on October 28–29, 2026. Annual forms may refer to a specific tax year. Use the rules and limits for the year being filed. General information; eligibility, elections and deadlines depend on the facts. No deduction or tax saving is guaranteed.
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