Filing Your Return

Canada employment amount tax credit

A non-refundable tax credit is available for the first $1,000 of employment income earned.  The credit is based on the lesser of

The tax credit is calculated by multiplying the lowest federal tax rate (15% for 2007 and 2008) by the lesser of $1,000 and total employment income.

Yukon also provides a non-refundable tax credit for the Canada employment amount.  The tax credit is calculated by multiplying the lowest Yukon tax rate by the lesser of $1,000 and total employment income.  To see the tax rate for non-refundable tax credits for Canada and all provinces and territories except Québec, see the tables of non-refundable tax credits.

The Canada employment amount is indexed for inflation each year, so is $1,019 for 2008, both for the Federal and Yukon tax credit amount.

No other provinces or territories provide a Canada employment amount tax credit at this time.

Revised: November 21, 2009