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.

Indexation increase per year
Description 2021 2020 2019 2018
Indexation increase 1.0% 1.9% 2.2% 1.5%
Tax bracket thresholds
Description 2021 2020 2019 2018
Taxable income above which the 20.5% bracket begins $49,020 $48,535 $47,630 $46,605
Taxable income above which the 26% bracket begins $98,040 $97,069 $95,259 $93,208
Taxable income above which the 29% bracket begins $151,978 $150,473 $147,667 $144,489
Taxable income above which the 33% bracket begins $216,511 $214,368 $210,371 $205,842
Amounts relating to non-refundable tax credits
Description 2021 2020 2019 2018
Basic personal amount for 2019 and prior yearsFootnote 1 NA NA $12,069 $11,809
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 begins Footnote 1 $12,421 $12,298 NA NA
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 Footnote 1 $13,808 $13,229 NA NA
Spouse or common-law partner amount (maximum) for 2019 and prior yearsFootnote 1 NA NA $12,069 $11,809
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 begins Footnote 1 $12,421 $12,298 NA NA
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 begins Footnote 1 $13,808 $13,229 NA NA
Spouse or common-law partner amount (maximum if eligible for the Canada caregiver amount for a dependent spouse or common-law partner) for 2019 and prior yearsFootnote 1 NA NA $14,299 $13,991
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 $14,716 $14,571 NA NA
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 $16,103 $15,502 NA NA
Amount for an eligible dependant (maximum) for 2019 and prior yearsFootnote 1 NA NA $12,069 $11,809
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 begins Footnote 1 $12,421 $12,298 NA NA
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 begins Footnote 1 $13,808 $13,229 NA NA
Amount for an eligible dependant (maximum if eligible for the Canada caregiver amount for a dependant) for 2019 and prior yearsFootnote 1 NA NA $14,299 $13,991
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 $14,716 $14,571 NA NA
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 $16,103 $15,502 NA NA
Canada caregiver amount for children under age 18 $2,295 $2,273 $2,230 $2,182
Age amount $7,713 $7,637 $7,494 $7,333
Net income threshold for age amount $38,893 $38,508 $37,790 $36,976
Canada employment amount (maximum) $1,257 $1,245 $1,222 $1,195
Canada caregiver amount for other infirm dependants age 18 or older (maximum amount) $7,348 $7,276 $7,140 $6,986
Net income threshold for Canada caregiver amount $17,256 $17,085 $16,766 $16,405
Disability amount $8,662 $8,576 $8,416 $8,235
Supplement for children with disabilities (maximum) $5,053 $5,003 $4,909 $4,804
Threshold relating to allowable child care and attendant care expenses $2,959 $2,930 $2,875 $2,814
Adoption expenses (maximum per adoption) $16,729 $16,563 $16,255 $15,905
Medical expense tax credit (3% of net income ceiling) $2,421 $2,397 $2,352 $2,302
Refundable medical expense supplement
Description 2021 2020 2019 2018
Maximum supplement $1,285 $1,272 $1,248 $1,222
Minimum earnings threshold $3,751 $3,714 $3,645 $3,566
Family net income threshold $28,446 $28,164 $27,639 $27,044
Old age security repayment
Description 2021 2020 2019 2018
Old age security repayment threshold $79,845 $79,054 $77,580 $75,910
Certain board and lodging allowances paid to players on sports teams or members of recreation programs
Description 2021 2020 2019 2018
Income exclusion (maximum per month) $377 $373 $366 $359
Tradesperson’s tools deduction
Description 2021 2020 2019 2018
Threshold amount relating to cost of eligible tools $1,257 $1,245 $1,222 $1,195
Advanced life deferred annuities (ALDA)Footnote 2
Description 2021 2020 2019 2018
Lifetime dollar limit $150,000 $150,000    
Canada training credit (CTC)Footnote 3 
Description 2021 2020 2019 2018
Minimum working income threshold $10,100 $10,000    
Maximum net income $150,473 $147,667    
Goods and services tax/harmonized sales tax credit
Description 2021 2020 2019 2018
Adult maximum $299 $296 $290 $284
Child maximum $157 $155 $153 $149
Single supplement $157 $155 $153 $149
Phase-in threshold for the single supplement $9,686 $9,590 $9,412 $9,209
Family net income at which credit begins to phase out $38,892 $38,507 $37,789 $36,976
Tax-free savings account
Description 2021 2020 2019 2018
Annual TFSA dollar limitFootnote 4 Footnote $6,000 $6,000 $6,000 $5,500
Lifetime capital gains exemption for qualified farm or fishing property and qualified small business corporation sharesFootnote 5 Footnote
Description 2021 2020 2019 2018
Exemption limit $892,218 $883,384 $866,912 $848,252
Deduction limit (since ½ of the capital gain is taxable) $446,109 $441,692 $433,456 $424,126
Additional exemption amount for qualified farm or fishing property $107,782 $116,616 $133,088 $151,748
Additional deduction amount for qualified farm or fishing property (since ½ of the capital gain is taxable) $53,891 $58,308 $66,544 $75,874
Canada child benefit (CCB)Footnote 6 
Description 2021 2020 2019 2018
CCB (base benefit, child under age 6) $6,833 $6,765 $6,639 $6,496
CCB (base benefit, child aged 6 to 17) $5,765 $5,708 $5,602 $5,481
Adjusted family net income at which phase out begins $32,028 $31,711 $31,120 $30,450
Second phase out threshold $69,395 $68,708 $67,426 $65,975
Base phase out amount for one eligible child $2,616 $2,590 $2,541 $2,487
Base phase out amount for two eligible children $5,044 $4,995 $4,901 $4,796
Base phase out amount for three eligible children $7,100 $7,029 $6,898 $6,750
Base phase out amount for four or more eligible children $8,594 $8,509 $8,351 $8,171
Child disability benefit (CDB)
Description 2021 2020 2019 2018
Maximum benefit $2,915 $2,886 $2,832 $2771
Family net income threshold for phase out $69,395 $68,708 $67,426 $65,975
Children’s special allowance (CSA)
Description 2021 2020 2019 2018
CSA base amount Footnote 6  Footnote 6   Footnote 6   Footnote 6
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