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Filing Your Return -> Basic Personal Amount Tax Credit

Line 30000 Basic Personal Amount (BPA) Tax Credit

Note: Before tax year 2019, line 30000 was line 300.

Income Tax Act s. 118(1), 118(1.1)

The basic personal amount (BPA) is $12,069 for 2019, increased by indexation to $12,298 for 2020. 

Enhanced Basic Personal Amount for 2020 & Later Years

However, on December 9, 2019, the federal government presented legislative proposals that would provide an additional amount of BPA for 2020 and later years, increasing the BPA to $15,000 for 2023.  The "additional amount" is gradually reduced when income is in excess of the bottom of the fourth tax bracket of $150,473 (in 2020).  The additional amount is reduced to zero when income reaches the bottom of the 5th tax bracket of $214,368 (in 2020). The proposed legislation also provides for increases to the spousal and eligible dependant amount tax credits.

The result of the additional amount is the following maximum basic personal amounts:

Tax Year Maximum
BPA
2020 $13,229
2021 13,808
2022 14,398
2023 15,000

The amount of $15,000 will be indexed for 2024 and subsequent taxation years.

The additional amount of BPA is $931 for 2020 ($13,229 - $12,298).

When income exceeds $150,473, the $931 is reduced until income reaches $214,368 and the additional amount is zero.  In other words, the additional amount is reduced by 1.45708% ($931 / ($214,368 - $150,473) of income over $150,473.  Assume income of $165,000 for this example:

Additional BPA

 = $931 - $931 x ($165,000 - $150,473) / ($214,368 - $150,473)

 = $931 - $931 x $14,527 / $63,895

 = $931 - $931 x 0.227357

 = $719.33

Therefore, the total BPA will be $12,298 + $719.33 = $13,017.33.

The additional tax credit is $719.33 x 15% = $107.90.

The maximum additional tax credit is $931 x 15% = $139.65.

The marginal tax rate is increased for 2020 by 0.22% for incomes from $150,473 to $214,368.  This is calculated as 15% (personal tax credit rate) x 1.45708%, and is related to the reduction in the personal tax credit as income increases.

In June 2020 Yukon tabled legislation to mirror the federal changes to the BPA, spousal, and eligible dependant amounts.

The Canadian Tax Calculator includes the calculation of the additional basic personal, spousal and eligible dependant amounts.

Canada Revenue Agency (CRA) information:

Folio S1-F4-C1, Basic Personal and Dependant Tax Credits

See also:

Tables of non-refundable tax credits for the amount of federal, provincial and territorial tax credits.

Revised: July 08, 2020

 

 

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