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 (for example, the goods and services tax credit) take effect on July 1, to coincide with the beginning of the program year for payments of this benefit.
The following chart provides the indexed amounts for four tax years.
| Description | 2017 | 2016 | 2015 | 2014 |
|---|---|---|---|---|
| Indexation increase | 1.4% | 1.3% | 1.7% | 0.9% |
| Tax bracket thresholds | ||||
|
Taxable income above which the 20.5% (22% prior to 2016) bracket beginsFootnote 1 |
45,916 | 45,282 | 44,701 | 43,953 |
|
Taxable income above which the 26% bracket beginsFootnote 1 |
91,831 | 90,563 | 89,401 | 87,907 |
|
Taxable income above which the 29% bracket beginsFootnote 1 |
142,353 | 140,388 | 138,586 | 136,270 |
|
Taxable income above which the 33% bracket beginsFootnote 1 |
202,800 | 200,000 | N/A | N/A |
| Amounts relating to non-refundable tax credits | ||||
|
Basic personal amount |
11,635 | 11,474 | 11,327 | 11,138 |
|
Age amount |
7,225 | 7,125 | 7,033 | 6,916 |
|
Net income threshold for age amount |
36,430 | 35,927 | 35,466 | 34,873 |
|
Spouse or common-law partner amount (maximum) |
11,635 | 11,474 | 11,327 | 11,138 |
|
Spouse or common-law partner amount (maximum if eligible for the family caregiver amount) |
13,785 | 13,595 | 13,420 | 13,196 |
|
Amount for an eligible dependant (maximum) |
11,635 | 11,474 | 11,327 | 11,138 |
|
Amount for an eligible dependant (maximum if dependant eligible for the family caregiver amount) |
13,785 | 13,595 | 13,420 | 13,196 |
|
Family caregiver amount for children under age 18 |
2,150 | 2,121 | 2,093 | N/A |
|
Amount for children under age 18 (maximum per child)Footnote 2 |
N/A | N/A | N/A | 2,255 |
|
Amount for children under age 18 (maximum per child eligible for the family caregiver amount)Footnote 2 |
N/A | N/A | N/A | 4,313 |
|
Canada employment amount (maximum) |
1,178 | 1,161 | 1,146 | 1,127 |
|
Infirm dependant amount (maximum per dependant) |
6,883 | 6,788 | 6,700 | 6,589 |
|
Net income threshold for infirm dependant amount |
6,902 | 6,807 | 6,720 | 6,607 |
|
Caregiver amount (maximum per dependant) |
4,732 | 4,667 | 4,608 | 4,530 |
|
Caregiver amount (maximum per dependant eligible for the family caregiver amount) |
6,882 | 6,788 | 6,701 | 6,588 |
|
Net income threshold for caregiver amount |
16,163 | 15,940 | 15,735 | 15,472 |
|
Disability amount |
8,113 | 8,001 | 7,899 | 7,766 |
|
Supplement for children with disabilities (maximum) |
4,733 | 4,667 | 4,607 | 4,530 |
|
Threshold relating to allowable child care and attendant care expenses |
2,772 | 2,734 | 2,699 | 2,654 |
|
Adoption expenses (maximum per adoption)Footnote 3 |
15,670 | 15,453 | 15,255 | 15,000 |
|
Medical expense tax credit (3% of net income ceiling) |
2,268 | 2,237 | 2,208 | 2,171 |
| Refundable medical expense supplement | ||||
|
Maximum supplement |
1,203 | 1,187 | 1,172 | 1,152 |
|
Minimum earnings threshold |
3,514 | 3,465 | 3,421 | 3,363 |
|
Family net income threshold |
26,644 | 26,277 | 25,939 | 25,506 |
|
Old age security repayment threshold |
74,788 | 73,756 | 72,809 | 71,592 |
| Certain board and lodging allowances paid to players on sports teams or members of recreation programs | ||||
|
Income exclusion (maximum per month) |
353 | 348 | 344 | 338 |
| Tradesperson's tools deduction | ||||
|
Threshold amount relating to cost of eligible tools |
1,178 | 1,161 | 1,146 | 1,127 |
| Goods and services tax/harmonized sales tax credit | ||||
|
Adult maximum |
280 | 276 | 272 | 268 |
|
Child maximum |
147 | 145 | 143 | 141 |
|
Single supplement |
147 | 145 | 143 | 141 |
|
Phase-in threshold for the single supplement |
9,073 | 8,948 | 8,833 | 8,685 |
|
Family net income at which credit begins to phase out |
36,429 | 35,926 | 35,465 | 34,872 |
| Tax-Free Savings Account (TFSA) | ||||
|
Annual TFSA dollar limitFootnote 4 |
5,500 | 5,500 | 10,000 | 5,500 |
| Lifetime capital gains exemption for qualified farm or fishing property and qualified small business corporation sharesFootnote 5 | ||||
|
Exemption limit |
835,716 | 824,176 | 813,600 | 800,000 |
|
Deduction limit (since ½ of the capital gain is taxable) |
417,858 | 412,088 | 406,800 | 400,000 |
|
Additional exemption amount for qualified farm or fishing property |
164,284 | 175,824 | 186,400 | N/A |
|
Additional deduction amount for qualified farm or fishing property (since ½ of the capital gain is taxable) |
82,142 | 87,912 | 93,200 | N/A |
| Canada child tax benefitFootnote 10 | ||||
|
Base benefit |
Footnote 6 | Footnote 6 | 1,471 | 1,446 |
|
Additional benefit for third child |
Footnote 6 | 6 | 103 | 101 |
|
Family net income at which base benefit begins to phase out |
Footnote 6 | Footnote 6 | 44,701 | 43,953 |
| National child benefit (NCB) supplementFootnote 10 | ||||
|
First child |
Footnote 7 | Footnote 7 | 2,279 | 2,241 |
|
Second child |
Footnote 7 | Footnote 7 | 2,016 | 1,982 |
|
Third child |
Footnote 7 | 7 | 1,918 | 1,886 |
|
Family net income at which NCB supplement begins to phase out |
Footnote 7 | 7 | 26,021 | 25,584 |
|
Family net income at which NCB supplement phase-out is complete |
Footnote 7 | 7 | 44,701 | 43,953 |
| Child disability benefit (CDB)Footnote 10 | ||||
|
Maximum benefit |
Footnote 8 | 8 | 2,695 | 2,650 |
|
Family net income at which CDB supplement begins to phase out |
Footnote 8 | 8 | 44,701 | 43,953 |
| Children’s special allowances (CSA)Footnote 10 | ||||
|
CSA Base Amount |
Footnote 9 | 9 | 3,750 | 3,687 |
Footnotes
- Footnote 1
-
As announced on December 7, 2015, the Government proposes to fix the taxable income amounts for 2016 in law. These amounts will be indexed to inflation in subsequent years.
- Footnote 2
-
The family caregiver amount continues to be available in respect of an infirm minor child under 18.
- Footnote 3
-
Under changes announced in the 2014 Federal Budget, the maximum amount of eligible adoption expenses increased to $15,000 per child for 2014 and is indexed in subsequent years.
- Footnote 4
-
Under changes announced in the 2015 Federal Budget, the TFSA dollar limit increased to $10,000 for 2015.
Under changes proposed 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
-
For 2013, the total lifetime capital gains deduction limit for qualified farm property, qualified fishing property and qualified small business corporation shares is $375,000 and is not indexed. The corresponding lifetime capital gains exemption is $750,000.
Under changes announced in the 2013 Federal Budget, the lifetime capital gains exemption limit for qualified farm property, qualified fishing property and qualified small business corporation shares increased to $800,000 of capital gains for 2014. Since one half of the capital gain is taxable, the lifetime capital gains deduction limit increased to $400,000 for 2014. This amount is indexed after 2014.
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. Therefore an additional lifetime capital gains exemption of $186,400 and deduction of $93,200 is available for qualified farm or fishing property disposed of in 2015 after April 20, 2015. The additional lifetime capital gains exemption for qualified farm or fishing property disposed of in 2016 is $175,824 and the deduction is $87,912, and in 2017 is $164,284 and $82,142 respectively.
- Footnote 6
-
Under changes announced in the 2016 Federal Budget, a new Canada Child Benefit was introduced for which payments began in July 2016. The new benefit replaces the Canada child tax benefit (along with the National child benefit supplement) and the Universal child care benefit.
- Footnote 7
-
Under changes announced in the 2016 Federal Budget, the National child benefit supplement was replaced by the Canada Child Benefit starting in July 2016.
- Footnote 8
-
Changes announced in the 2016 Federal Budget to the Child disability benefit were effective July 1, 2016.
- Footnote 9
-
Under changes announced in the 2016 Federal Budget, the Children's special allowance is now based on the Canada Child Benefit effective July 1, 2016.
- Footnote 10
-
For additional information on child benefits, refer to the child benefits information, go to the child and family benefits calculator and enter the tax year for the year that the benefit is based on (i.e. enter 2015 for payments starting July 1, 2016).
- Date modified:
- 2017-03-07