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% (22% for 2015) bracket begins
45,282
44,701
Taxable income above which the 26% bracket begins
90,563
89,401
Taxable income above which the 29% bracket begins
140,388
138,586
Taxable income above which the 33% bracket begins
200,000
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
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
10,000
Lifetime capital gains exemption for qualified farm or fishing property and qualified small business corporation shares
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
Source : Canada Revenue Aagency website
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