OTTAWA, ONTARIO--(Marketwired - Dec. 8, 2015) -
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.
|Tax bracket thresholds|
|Taxable income above which the 20.5% [Footnote 1](22% for 2015) bracket begins||45,282
|Taxable income above which the 26% bracket begins||90,563
|Taxable income above which the 29% bracket begins||140,388
|Taxable income above which the 33% bracket begins||200,000
|Amounts relating to non-refundable tax credits|
|Basic personal amount||11,474||11,327|
|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: http://www.cra-arc.gc.ca/familycaregiver/)||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: http://www.cra-arc.gc.ca/familycaregiver/)||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: http://www.cra-arc.gc.ca/familycaregiver/)||6,788||6,701|
|Net income threshold||15,940||15,735|
|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|
|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 playerson 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|
|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
|Lifetime capital gains exemption for qualified farm or fishing property and qualified small business corporation shares [Footnote 3]|
|Deduction limit (since 1/2 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 1/2 of the capital gain is taxable)||87,912||93,200|
As announced on December 7, 2015, the Government proposes to fix these amounts in law. These amounts will be indexed to inflation in subsequent years.
Under changes announced in the 2015 Federal Budget, the TFSA dollar limit increased to $10,000 for 2015.
Since one half of the capital gain is taxable, the total lifetime capital gains deduction limit for qualified farm or fishing property and qualified small business corporation shares increased to $412,088 for 2016 due to indexing. Under changes announced in the 2015 Federal Budget, the lifetime capital gains exemption applicable to capital gains realized on the disposition of qualified farm or fishing property, disposed after April 20, 2015, is the greater of (1) $1 million; and (2) the indexed lifetime capital gains exemption applicable to capital gains realized on the disposition of qualified small business corporation shares. Therefore an additional lifetime capital gains exemption of 175,824 and deduction of 87,912 is available for qualified farm or fishing property disposed in 2016.
To receive updates when new information is added to our website, you can:
- Follow the CRA on Twitter - @CanRevAgency.
- Subscribe to a CRA electronic mailing list.
- Add our RSS feeds to your feed reader.
You can also watch our tax-related videos on YouTube.