Basic Personal Amount 2026
The federal basic personal amount (BPA) for 2026 is $16,452. This is the amount of income you can earn before paying any federal income tax.
| Detail | 2026 Amount |
|---|---|
| Federal BPA (enhanced) | $16,452 |
| Tax credit rate | 14% |
| Federal tax savings | $2,303.28 |
How the Basic Personal Amount Works
The BPA is a non-refundable tax credit. It reduces your federal tax by 14% of the BPA amount:
$16,452 × 14% = $2,303.28 in tax savings
This means everyone pays $0 federal tax on their first $16,452 of income. The lowest federal tax rate was reduced from 15% to 14% effective July 1, 2025.
Enhanced BPA Clawback
The enhanced BPA is gradually reduced for high-income earners. If your net income exceeds the fourth tax bracket threshold, the BPA is clawed back to the base amount.
| Income Level | Federal BPA |
|---|---|
| $181,440 or less | $16,452 (full enhanced) |
| $181,440 to $258,482 | Gradually reduced |
| $258,482 or more | $14,829 (base amount) |
Reduction formula: For every dollar of income above $181,440, the enhanced portion ($1,623) is reduced proportionally until it reaches the base BPA at $258,482.
Federal BPA History
| Year | Enhanced BPA | Base BPA | Lowest Rate | Tax Credit |
|---|---|---|---|---|
| 2026 | $16,452 | $14,829 | 14% | $2,303.28 |
| 2025 | $16,129 | $14,538 | 15%/14% | $2,419.35 |
| 2024 | $15,705 | $14,156 | 15% | $2,355.75 |
| 2023 | $15,000 | $13,520 | 15% | $2,250.00 |
| 2022 | $14,398 | $13,229 | 15% | $2,159.70 |
| 2021 | $13,808 | $12,421 | 15% | $2,071.20 |
| 2020 | $13,229 | $12,298 | 15% | $1,984.35 |
Provincial Basic Personal Amounts 2026
Each province and territory has its own BPA that applies to provincial income tax:
| Province/Territory | Provincial BPA | Provincial Credit Rate | Tax Savings |
|---|---|---|---|
| Alberta | $21,003 | 10% | $2,100.30 |
| British Columbia | $12,580 | 5.06% | $636.55 |
| Manitoba | $15,780 | 10.8% | $1,704.24 |
| New Brunswick | $13,044 | 9.40% | $1,226.14 |
| Newfoundland | $10,818 | 8.7% | $941.17 |
| Northwest Territories | $16,593 | 5.9% | $978.99 |
| Nova Scotia | $8,481 | 8.79% | $745.48 |
| Nunavut | $17,925 | 4% | $717.00 |
| Ontario | $11,865 | 5.05% | $599.18 |
| PEI | $13,500 | 9.65% | $1,302.75 |
| Quebec | $18,056 | 14% | $2,527.84 |
| Saskatchewan | $18,491 | 10.5% | $1,941.56 |
| Yukon | $16,452 | 6.4% | $1,052.93 |
Combined Federal + Provincial Tax-Free Income
| Province | Total BPA (Federal + Provincial) | Combined Tax Savings |
|---|---|---|
| Alberta | $16,452 + $21,003 | $4,403.72 |
| Saskatchewan | $16,452 + $18,491 | $4,244.84 |
| Quebec | $16,452 + $18,056 | $4,831.12 |
| Ontario | $16,452 + $11,865 | $2,902.46 |
| Nova Scotia | $16,452 + $8,481 | $3,048.76 |
Note: The federal and provincial BPAs apply at different tax rates, so the combined tax savings varies.
Who claims the basic personal amount?
Every Canadian tax filer claims the BPA — it’s automatic. You don’t need to do anything special:
- Employees: Your employer applies the BPA when calculating payroll deductions (TD1 form)
- Self-employed: The BPA is claimed on your tax return
- Retirees: The BPA applies to all taxable income including pensions
The TD1 form: employees and the BPA
Your employer uses the BPA from your TD1 Personal Tax Credits Return to calculate how much income tax to withhold from each paycheque. If you start a new job, your employer should ask you to complete a TD1 (federal) and a TD1 provincial.
- On the federal TD1, the BPA is pre-filled as the default amount
- You can claim additional amounts (spousal amount, disability amount, caregiver amounts) on the TD1 to reduce withholding further
- If you have multiple jobs, only claim the BPA at one employer — if you claim it at both, you will owe tax at filing
Important: the TD1 is not your tax return. It just tells your employer how much to withhold. Your actual tax is calculated when you file your T1.
Spousal or common-law partner amount
If your spouse or common-law partner’s net income is below your BPA ($16,452), you can claim a spousal amount (Line 30300) on your tax return. This transfers their unused BPA credit to you:
| Your spouse’s net income | Your spousal amount credit |
|---|---|
| $0 | $16,452 × 14% = $2,303.28 |
| $5,000 | ($16,452 − $5,000) × 14% = $1,603.28 |
| $10,000 | ($16,452 − $10,000) × 14% = $903.28 |
| $16,452 or more | $0 |
The spousal amount is also available for a dependant age 18+ who lives with you and depends on you financially (eligible dependant amount, Line 30400) — useful for parents supporting a young adult child or an adult child supporting a parent.
Why the BPA keeps increasing: indexation
The federal BPA is indexed to inflation using the Consumer Price Index (CPI). Each year CRA adjusts the BPA by the annual inflation rate. In high-inflation years (2022-2024), the BPA increased by more than usual.
In addition to CPI indexation, the federal government began phasing in an enhanced BPA in 2020, gradually raising it toward $15,000 over five years. That enhancement is now complete.