Fact sheet
Disclaimer
We do not guarantee the accuracy of this copy of the CRA website.
Scraped Page Content
Fact sheet
Archived content
Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact us to request a format other than those available.
Archived
This page has been archived on the Web.
December 2007
2008 Indexation Adjustment for Personal Income Taxes
Each year, certain personal income tax amounts are indexed to inflation using the Consumer Price Index data, as reported by Statistics Canada.
Increases to tax bracket thresholds, personal amounts and other amounts relating to non-refundable credits, as well as the refundable medical expense supplement and Old Age Security repayment threshold, will take effect as of January 1, 2008. Increases to the Canada Child Tax Benefit (including the National Child Benefit supplement and the Child Disability Benefit) and the Goods and Services Tax Credit will take effect as of July 1, 2008, to coincide with the beginning of the "program year" for payment of these benefits.
The following chart compares the indexed amounts for the 2007 and 2008 tax years. It reflects an indexation increase of 1.9% for 2008.
|
2008 |
2007 |
|
|---|---|---|
|
Tax Bracket Thresholds |
||
|
Taxable Income above which the 22-percent bracket begins |
37,885 |
37,178 |
|
Taxable Income above which the 26-percent bracket begins |
75,769 |
74,357 |
|
Taxable income above which the 29-percent bracket begins |
123,184 |
120,887 |
|
Personal Amounts and Other Amounts Relating to Non-refundable Tax Credits |
||
|
Basic personal amount (See note below) |
9,600 |
9,600 |
|
Age amount |
5,276 |
5,177 |
|
Net income threshold |
31,524 |
30,936 |
|
Spouse or common-law partner amount (See note below) |
9,600 |
9,600 |
|
Amount for an eligible dependant (See note below) |
9,600 |
9,600 |
|
Amount for children under age 18 (maximum per child) |
2,038 |
2,000 |
|
Canada employment amount |
1,019 |
1,000 |
| Infirm dependant amount | 4,095 | 4,019 |
| Net income threshold | 5,811 | 5,702 |
|
Caregiver amount |
4,095 |
4,019 |
|
Net income threshold |
13,986 |
13,726 |
|
Disability amount |
7,021 |
6,890 |
|
Supplement for children with disabilities |
4,095 |
4,019 |
|
Allowable child care and attendant care expenses |
2,399 |
2,354 |
|
Maximum adoption expense amount (per adoption) |
10,643 |
10,445 |
|
Medical expense tax credit-3 percent of net income ceiling |
1,962 |
1,926 |
|
Refundable medical expense supplement |
||
|
Maximum supplement |
1,041 |
1,022 |
|
Minimum earnings threshold |
3,040 |
2,984 |
|
Family net income threshold |
23,057 |
22,627 |
|
Old Age Security repayment threshold |
64,718 |
63,511 |
|
Goods and Services Tax Credit (GSTC) |
||
|
Adult maximum |
242 |
237 |
|
Child maximum |
127 |
125 |
|
Single supplement |
127 |
125 |
|
Phase-in threshold for the single supplement |
7,851 |
7,705 |
|
Family net income at which credit begins to phase out |
31,524 |
30,936 |
|
Canada Child Tax Benefit |
||
|
Base benefit |
1,307 |
1,283 |
|
Additional benefit for third child |
91 |
90 |
|
Family net income at which base benefit begins to phase out |
37,885 |
37,178 |
|
National Child Benefit (NCB) Supplement |
||
|
First child |
2,025 |
1,988 |
|
Second child |
1,792 |
1,758 |
|
Third child |
1,704 |
1,673 |
|
Family net income at which NCB supplement begins to phase out |
21,287 |
20,883 |
|
Family net income at which NCB supplement phase-out is complete |
37,885 |
37,178 |
|
Child Disability Benefit |
||
|
Maximum benefit |
2,395 |
2,351 |
|
Family net income at which benefit begins to phase out |
37,885 |
37,178 |
|
Child Special Allowance (CSA) |
||
|
CSA base amount |
3,332 |
3,271 |
Note:
Under changes announced on October 30, 2007, in the 2007 Economic Statement, the basic personal amount, the maximum spouse or common-law partner amount, and the amount for an eligible dependant are increased to $9,600 for the 2007 and 2008 tax years.
As announced in the 2007 Federal Budget, the net income threshold has been eliminated effective for 2007 and subsequent tax years. The spouse or common-law partner amount and the amount for an eligible dependant are calculated by subtracting the net income for the spouse/common-law partner or the dependant, as applicable, from the maximum amount ($9,600 for 2007 and 2008).
This document is also available for download in PDF format.
To get notification by email when news releases, fact sheets, tax tips, and tax alerts are added to our Web site, subscribe to our electronic mailing list. You can also subscribe to the Media room RSS feed.
- Date modified:
- 2014-12-03