2016 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 will take effect on January 1, 2016. However, increases to the goods and services tax credit will take effect on July 1, 2016, to coincide with the beginning of the program year for payment of this benefit.

The following chart compares the indexed amounts for the 2015 and 2016 tax years. It reflects an indexation increase of 1.3% for 2016.

 

 

2016
($)

2015
($)

Tax bracket thresholds

Taxable income above which the 20.5% Footnote 1(22% for 2015) bracket begins

45,282

Footnote 1

44,701

Taxable income above which the 26% bracket begins

90,563

Footnote 1

89,401

Taxable income above which the 29% bracket begins

140,388

Footnote 1

138,586

Taxable income above which the 33% bracket begins

200,000

Footnote 1

 

Amounts relating to non-refundable tax credits

Basic personal amount

11,474

11,327

Age amount

7,125

7,033

Net income threshold

35,927

35,466

Spouse or common-law partner amount (maximum)

11,474

11,327

Spouse or common-law partner amount (maximum if eligible for the family caregiver amount)

13,595

13,420

Amount for an eligible dependant (maximum)

11,474

11,327

Amount for an eligible dependant (maximum if dependant eligible for the family caregiver amount)

13,595

13,420

Family caregiver amount  for children under age 18

2,121

2,093

Canada employment amount (maximum)

1,161

1,146

Infirm dependant amount (maximum per dependant)

6,788

6,700

Net income threshold

6,807

6,720

Caregiver amount (maximum per dependant)

4,667

4,608

Caregiver amount (maximum per dependant eligible for the family caregiver amount)

6,788

6,701

Net income threshold

15,940

15,735

Disability amount

8,001

7,899

Supplement for children with disabilities (maximum)

4,667

4,607

Threshold relating to allowable child care and attendant care expenses

2,734

2,699

Adoption expenses (maximum per adoption)

15,453

 15,255

Medical expense tax credit—3% of net income ceiling

2,237

2,208

Refundable medical expense supplement

Maximum supplement

1,187

1,172

Minimum earnings threshold

3,465

3,421

Family net income threshold

26,277

25,939

Old age security repayment threshold

73,756

72,809

Certain board and lodging allowances paid to players
on sports teams or members of recreation programs

Income exclusion (maximum per month)

348

344

Tradesperson's tools deduction

Threshold amount relating to cost of eligible tools

1,161

1,146

Goods and services tax/harmonized sales tax credit

Adult maximum

276

272

Child maximum

145

143

Single supplement

145

143

Phase-in threshold for the single supplement

8,948

8,833

Family net income at which credit begins to phase out

35,926

35,465

Tax-Free Savings Account (TFSA)

Annual TFSA dollar limit

5,500

Footnote 1

10,000

Footnote 2

Lifetime capital gains exemption for qualified farm or fishing property and qualified small business corporation shares  Footnote 3

Exemption limit

824,176

813,600

Deduction limit (since ½ of the capital gain is taxable)

412,088

406,800

Additional exemption amount for qualified farm or fishing property

175,824

186,400

Additional deduction amount for qualified farm or fishing property (since ½ of the capital gain is taxable)

87,912

93,200

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