Indexation adjustment for personal income tax and benefit amounts
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Indexation adjustment for personal income tax and benefit amounts
Each year, certain personal income tax and benefit amounts are indexed to inflation using the Consumer Price Index data as reported by Statistics Canada.
Increases to tax bracket thresholds, amounts relating to non-refundable credits, and most other amounts below take effect on January 1 of the applicable year.
Increases in amounts for certain income-tested benefits like the goods and services tax credit, the Canada child benefit and Child disability benefit, take effect on July 1 to coincide with the beginning of the program year for payments of these benefits.
The following chart provides the indexed amounts for four tax years based on the announced personal income tax and benefit commitments to date.
| Description | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Indexation increase | 2.7% | 4.7% | 6.3% | 2.4% |
| Description | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Taxable income above which the 20.5% bracket begins | $57,375 | $55,867 | $53,359 | $50,197 |
| Taxable income above which the 26% bracket begins | $114,750 | $111,733 | $106,717 | $100,392 |
| Taxable income above which the 29% bracket begins | $177,882 | $173,205 | $165,430 | $155,625 |
| Taxable income above which the 33% bracket begins | $253,414 | $246,752 | $235,675 | $221,708 |
| Description | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Basic personal amount for individuals whose net income for the year is greater than or equal to the amount at which the 33% tax bracket beginsFootnote 1 | $14,538 | $14,156 | $13,520 | $12,719 |
| Basic personal amount for individuals whose net income for the year is less than or equal to the amount at which the 29% tax bracket beginsFootnote 1 | $16,129 | $15,705 | $15,000 | $14,398 |
| Spouse or common-law partner amount (maximum) for individuals whose net income for the year is greater than the amount at which the 33% tax bracket beginsFootnote 1 | $14,538 | $14,156 | $13,520 | $12,719 |
| Spouse or common-law partner amount (maximum) for individuals whose net income for the year is less than or equal to the amount at which the 29% tax bracket beginsFootnote 1 | $16,129 | $15,705 | $15,000 | $14,398 |
| Spouse or common-law partner amount for individuals whose net income for the year is greater than or equal to the amount at which the 33% tax bracket begins (maximum if eligible for the Canada caregiver amount for a dependent spouse or common-law partner)Footnote 1 | $17,225 | $16,772 | $16,019 | $15,069 |
| Spouse or common-law partner amount for individuals whose net income for the year is less than or equal to the amount at which the 29% tax bracket begins (maximum if eligible for the Canada caregiver amount for a dependent spouse or common-law partner)Footnote 1 | $18,816 | $18,321 | $17,499 | $16,748 |
| Amount for an eligible dependant (maximum) for individuals whose net income for the year is greater than or equal to the amount at which the 33% tax bracket beginsFootnote 1 | $14,538 | $14,156 | $13,520 | $12,719 |
| Amount for an eligible dependant (maximum) for individuals whose net income for the year is less than or equal to the amount at which the 29% tax bracket beginsFootnote 1 | $16,129 | $15,705 | $15,000 | $14,398 |
| Amount for an eligible dependant for individuals whose net income for the year is greater than or equal to the amount at which the 33% tax bracket begins (maximum if eligible for the Canada caregiver amount for a dependant)Footnote 1 | $17,225 | $16,772 | $16,019 | $15,069 |
| Amount for an eligible dependant for individuals whose net income for the year is less than or equal to the amount at which the 29% tax bracket begins (maximum if eligible for the Canada caregiver amount for a dependant)Footnote 1 | $18,816 | $18,321 | $17,499 | $16,748 |
| Canada caregiver amount for children under age 18 | $2,687 | $2,616 | $2,499 | $2,350 |
| Age amount | $9,028 | $8,790 | $8,396 | $7,898 |
| Net income threshold for age amount | $45,522 | $44,325 | $42,335 | $39,826 |
| Canada employment amount (maximum) | $1,471 | $1,433 | $1,368 | $1,287 |
| Canada caregiver amount for other infirm dependants age 18 or older (maximum amount) | $8,601 | $8,375 | $7,999 | $7,525 |
| Net income threshold for Canada caregiver amount | $20,197 | $19,666 | $18,783 | $17,670 |
| Disability amount | $10,138 | $9,872 | $9,428 | $8,870 |
| Supplement for children with disabilities (maximum) | $5,914 | $5,758 | $5,500 | $5,174 |
| Threshold relating to allowable child care and attendant care expenses | $3,464 | $3,373 | $3,221 | $3,030 |
| Adoption expenses (maximum per adoption) | $19,580 | $19,066 | $18,210 | $17,131 |
| Medical expense tax credit (3% of net income ceiling) | $2,834 | $2,759 | $2,635 | $2,479 |
| Description | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Maximum supplement | $1,504 | $1,464 | $1,399 | $1,316 |
| Minimum earnings threshold | $4,390 | $4,275 | $4,083 | $3,841 |
| Family net income threshold | $33,294 | $32,419 | $30,964 | $29,129 |
| Description | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Old age security repayment threshold | $93,454 | $90,997 | $86,912 | $81,761 |
| Description | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Income exclusion (maximum per month) | $441 | $430 | $411 | $386 |
| Description | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Threshold amount relating to cost of eligible tools | $1,471 | $1,433 | $1,368 | $1,287 |
| Description | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Lifetime dollar limit | $180,000 | $170,000 | $160,000 | $160,000 |
| Description | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Minimum working income threshold | $11,821 | $11,511 | $10,994 | $10,342 |
| Maximum net income | $173,205 | $165,430 | $155,625 | $151,978 |
| Description | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Adult maximum | $349 | $340 | $325 | $306 |
| Child maximum | $184 | $179 | $171 | $161 |
| Single supplement | $184 | $179 | $171 | $161 |
| Phase-in threshold for the single supplement | $11,337 | $11,039 | $10,544 | $9,919 |
| Family net income at which credit begins to phase out | $45,521 | $44,324 | $42,335 | $39,826 |
| Description | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Annual TFSA dollar limitFootnote 4 | $7,000 | $7,000 | $6,500 | $6,000 |
| Description | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Exemption limit | $1,250,000 | Footnote 5 | $971,190 | $913,630 |
| Exemption limit – before June 25, 2024 | NA | $1,016,836 | NA | NA |
| Exemption limit – after June 24, 2024 | NA | $1,250,000 | NA | NA |
| Additional exemption amount for qualified farm or fishing property | NA | NA | $28,810 | $86,370 |
| Additional deduction amount for qualified farm or fishing property (since ½ of the capital gain is taxable) | NA | NA | $14,405 | $43,185 |
| Deduction limit (since ½ of the capital gain is taxable) | NA | Footnote 5 | $485,595 | $456,815 |
| Deduction limit (since 2/3 of the capital gain is taxable) | $833,333 | NA | NA | NA |
| Deduction limit before June 25, 2024 (since ½ of the capital gain is taxable) | NA | $508,418 | NA | NA |
| Deduction limit after June 24, 2024 (since 2/3 of the capital gain is taxable) | NA | $833,333 | NA | NA |
| Description | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| CCB (base benefit, child under age 6) | $7,997 | $7,787 | $7,437 | $6,997 |
| CCB (base benefit, child aged 6 to 17) | $6,748 | $6,570 | $6,275 | $5,903 |
| Adjusted family net income at which phase out begins | $37,487 | $36,502 | $34,863 | $32,797 |
| Second phase out threshold | $81,222 | $79,087 | $75,537 | $71,060 |
| Base phase out amount for one eligible child | $3,061 | $2,981 | $2,847 | $2,678 |
| Base phase out amount for two eligible children | $5,904 | $5,749 | $5,491 | $5,166 |
| Base phase out amount for three eligible children | $8,310 | $8,091 | $7,728 | $7,270 |
| Base phase out amount for four or more eligible children | $10,059 | $9,795 | $9,355 | $8,801 |
| Description | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Maximum benefit | $3,411 | $3,322 | $3,173 | $2,985 |
| Family net income threshold for phase out | $81,222 | $79,087 | $75,537 | $71,060 |
| Description | 2022-2025 |
|---|---|
| CSA base amount | Footnote 6 |
| Description | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Minimum working income threshold | $3,000 | $3,000 | $3,000 | $3,000 |
| Maximum benefit for single individuals with no children | $1,633 | $1,590 | $1,518 | $1,428 |
| Maximum benefit for families | $2,813 | $2,739 | $2,616 | $2,461 |
| Adjusted net income at which the benefit begins to phase out for single individuals with no children | $26,855 | $26,149 | $24,975 | $23,495 |
| Adjusted family net income at which the benefit begins to phase out for families | $30,639 | $29,833 | $28,494 | $26,805 |
| Secondary earner exemption | $16,386 | $15,955 | $15,239 | $14,336 |
| Description | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Minimum working income threshold | $1,150 | $1,150 | $1,150 | $1,150 |
| Maximum supplement | $843 | $821 | $784 | $737 |
| Adjusted net income at which the supplement begins to phase out for single individuals with no children | $37,740 | $36,748 | $35,098 | $33,018 |
| Adjusted family net income at which the supplement begins to phase out for families | $49,389 | $48,091 | $45,932 | $43,210 |
Footnotes
- Footnote 1
-
On December 9, 2019, the Government announced an increase to the basic personal amount. For individuals whose net income for the year is less than or equal to the amount at which the 29% tax bracket begins ($150,473 for 2020), the basic personal amount increased to $13,229 for 2020, $13,808 for 2021, $14,398 for 2022, $15,000 for 2023. The amount is indexed after 2023. For individuals whose net income is greater than the amount at which the 29% tax bracket begins ($150,473 for 2020), the increase in the basic personal amount gradually phases out so that the basic personal amount for individuals whose income is greater than the next tax bracket threshold ($214,368 for 2020), remains unchanged ($12,298 for 2020) and continues to be indexed.
Similar increases were announced for the maximum spouse or common-law partner amount and the maximum amount for an eligible dependant. The phase out of the increase is based on the individual’s income rather than the income of the dependant.
- Footnote 2
-
An individual is subject to a lifetime advanced life deferred annuity (ALDA) limit equal to 25% of a specified amount in relation to a particular qualifying plan. An individual is also subject to a comprehensive lifetime ALDA dollar limit of $150,000 from all qualifying plans. The lifetime ALDA dollar limit is indexed for inflation for taxation years after 2020, rounded to the nearest $10,000.
- Footnote 3
-
The 2019 Federal Budget announced the Canada training credit (CTC) which started in 2020. Individuals can accumulate $250 towards their Canada training credit limit each year if, in the preceding year, they met all eligibility conditions. An individual’s Canada training credit limit for a year represents the maximum credit they can claim in that year, and will be reduced in the subsequent year by the amount of any CTC claimed. Eligibility conditions include a minimum working income threshold and a maximum net income threshold in respect of the preceding year. For example, the accumulation of a $250 Canada training credit limit for 2020 was dependent on income in 2019; for 2020 the minimum working income threshold of $10,000 and the maximum net income threshold (the amount at which the 29% tax bracket begins for the 2019 year – $147,667) was applied to a taxpayer’s income earned in 2019.
- Footnote 4
-
Under changes announced by the Government in a Department of Finance news release on December 7, 2015, for 2016 and each subsequent year, the annual TFSA dollar limit is fixed at 5,000, indexed to inflation for each year after 2009, and rounded to the nearest $500.
- Footnote 5
-
Under changes announced in the 2015 Federal Budget, the lifetime capital gains exemption applicable to capital gains realized on the disposition of qualified farm or fishing property, disposed of after April 20, 2015, is the greater of (1) $1 million and (2) the indexed lifetime capital gains exemption applicable to capital gains realized on the disposition of qualified small business corporation shares.
On September 23, 2024, the Government tabled a Notice of Ways and Means Motion that proposes to amend the Income Tax Act to increase the LCGE limit to $1.25 million of eligible capital gains. In addition, the basic inclusion rate for all capital gains and losses will increase from one half to two thirds. This measure would apply to dispositions that occur on or after June 25, 2024. Indexation of the LCGE would resume in 2026.
- Footnote 6
-
The Children's special allowance is the same amount as the Canada child benefit plus the Child disability benefit (where applicable). However there is no phase out for the Children’s special allowance. See the Canada child benefit amounts for the two age groups.
- Footnote 7
-
The CWB amounts may differ for residents of provinces or territories that sign reconfiguration agreements with the federal government to make specific changes to the design of the benefit. Currently, reconfiguration agreements exist with Alberta, Quebec and Nunavut.
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- Date modified:
- 2024-11-15