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	2023	2022	2021	2020
Indexation increase	6.3%	2.4%	1.0%	1.9%

Tax bracket thresholds
Description	2023	2022	2021	2020
Taxable income above which the 20.5% bracket begins	$53,359	$50,197	$49,020	$48,535
Taxable income above which the 26% bracket begins	$106,717	$100,392	$98,040	$97,069
Taxable income above which the 29% bracket begins	$165,430	$155,625	$151,978	$150,473
Taxable income above which the 33% bracket begins	$235,675	$221,708	$216,511	$214,368

Amounts relating to non-refundable tax credits
Description	2023	2022	2021	2020
Basic personal amount for 2019 and prior years^{Footnote 1}	NA	NA	NA	NA
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}	$13,520	$12,719	$12,421	$12,298
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}	$15,000	$14,398	$13,808	$13,229
Spouse or common-law partner amount (maximum) for 2019 and prior years^{Footnote 1}	NA	NA	NA	NA
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}	$13,520	$12,719	$12,421	$12,298
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}	$15,000	$14,398	$13,808	$13,229
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 years^{Footnote 1}	NA	NA	NA	NA
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}	$16,019	$15,069	$14,716	$14,571
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}	$17,499	$16,748	$16,103	$15,502
Amount for an eligible dependant (maximum) for 2019 and prior years^{Footnote 1}	NA	NA	NA	NA
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}	$13,520	$12,719	$12,421	$12,298
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}	$15,000	$14,398	$13,808	$13,229
Amount for an eligible dependant (maximum if eligible for the Canada caregiver amount for a dependant) for 2019 and prior years^{Footnote 1}	NA	NA	NA	NA
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}	$16,019	$15,069	$14,716	$14,571
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}	$17,499	$16,748	$16,103	$15,502
Canada caregiver amount for children under age 18	$2,499	$2,350	$2,295	$2,273
Age amount	$8,396	$7,898	$7,713	$7,637
Net income threshold for age amount	$42,335	$39,826	$38,893	$38,508
Canada employment amount (maximum)	$1,368	$1,287	$1,257	$1,245
Canada caregiver amount for other infirm dependants age 18 or older (maximum amount)	$7,999	$7,525	$7,348	$7,276
Net income threshold for Canada caregiver amount	$18,783	$17,670	$17,256	$17,085
Disability amount	$9,428	$8,870	$8,662	$8,576
Supplement for children with disabilities (maximum)	$5,500	$5,174	$5,053	$5,003
Threshold relating to allowable child care and attendant care expenses	$3,221	$3,030	$2,959	$2,930
Adoption expenses (maximum per adoption)	$18,210	$17,131	$16,729	$16,563
Medical expense tax credit (3% of net income ceiling)	$2,635	$2,479	$2,421	$2,397

Refundable medical expense supplement
Description	2023	2022	2021	2020
Maximum supplement	$1,399	$1,316	$1,285	$1,272
Minimum earnings threshold	$4,083	$3,841	$3,751	$3,714
Family net income threshold	$30,964	$29,129	$28,446	$28,164

Old age security repayment
Description	2023	2022	2021	2020
Old age security repayment threshold	$86,912	$81,761	$79,845	$79,054

Certain board and lodging allowances paid to players on sports teams or members of recreation programs
Description	2023	2022	2021	2020
Income exclusion (maximum per month)	$411	$386	$377	$373

Tradesperson’s tools deduction
Description	2023	2022	2021	2020
Threshold amount relating to cost of eligible tools	$1,368	$1,287	$1,257	$1,245

Advanced life deferred annuities (ALDA)^{Footnote 2}
Description	2023	2022	2021	2020
Lifetime dollar limit	$160,000	$160,000	$150,000	$150,000

Canada training credit (CTC)^{Footnote 3}
Description	2023	2022	2021	2020
Minimum working income threshold	$10,994	$10,342	$10,100	$10,000
Maximum net income	$155,625	$151,978	$150,473	$147,667

Goods and services tax/harmonized sales tax credit
Description	2023	2022	2021	2020
Adult maximum	$325	$306	$299	$296
Child maximum	$171	$161	$157	$155
Single supplement	$171	$161	$157	$155
Phase-in threshold for the single supplement	$10,544	$9,919	$9,686	$9,590
Family net income at which credit begins to phase out	$42,335	$39,826	$38,892	$38,507

Tax-free savings account
Description	2023	2022	2021	2020
Annual TFSA dollar limit^{Footnote 4}	$6,500	$6,000	$6,000	$6,000

Lifetime capital gains exemption for qualified farm or fishing property and qualified small business corporation shares^{Footnote 5}
Description	2023	2022	2021	2020
Exemption limit	$971,190	$913,630	$892,218	$883,384
Deduction limit (since ½ of the capital gain is taxable)	$485,595	$456,815	$446,109	$441,692
Additional exemption amount for qualified farm or fishing property	$28,810	$86,370	$107,782	$116,616
Additional deduction amount for qualified farm or fishing property (since ½ of the capital gain is taxable)	$14,405	$43,185	$53,891	$58,308

Canada child benefit (CCB)^{Footnote 6}
Description	2023	2022	2021	2020
CCB (base benefit, child under age 6)	$7,437	$6,997	$6,833	$6,765
CCB (base benefit, child aged 6 to 17)	$6,275	$5,903	$5,765	$5,708
Adjusted family net income at which phase out begins	$34,863	$32,797	$32,028	$31,711
Second phase out threshold	$75,537	$71,060	$69,395	$68,708
Base phase out amount for one eligible child	$2,847	$2,678	$2,616	$2,590
Base phase out amount for two eligible children	$5,491	$5,166	$5,044	$4,995
Base phase out amount for three eligible children	$7,728	$7,270	$7,100	$7,029
Base phase out amount for four or more eligible children	$9,355	$8,801	$8,594	$8,509

Child disability benefit (CDB)
Description	2023	2022	2021	2020
Maximum benefit	$3,173	$2,985	$2,915	$2,886
Family net income threshold for phase out	$75,537	$71,060	$69,395	$68,708

Children’s special allowance (CSA)
Description	2020-2023
CSA base amount	^{Footnote 6}

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.

Return to footnote1 Referrer

Footnote 2

The lifetime ALDA dollar limit is indexed for inflation for taxation years after 2020, rounded to the nearest $10,000.

Return to footnote2 Referrer

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.

Return to footnote3 Referrer

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.

Return to footnote4 Referrer

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.

Return to footnote5 Referrer

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.

Return to footnote6 Referrer

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Date modified:: 2021-11-11

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Indexation adjustment for personal income tax and benefit amounts

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