The following is now available on the CRA Web site:
Each year, certain personal income tax amounts are indexed to inflation using the Consumer Price Index data, as reported by Statistics Canada.
Increases to tax bracket thresholds, personal amounts and other amounts relating to non-refundable credits, as well as the refundable medical expense supplement and Old Age Security repayment threshold, will take effect as of January 1, 2008. Increases to the Canada Child Tax Benefit (including the National Child Benefit supplement and the Child Disability Benefit) and the Goods and Services Tax Credit will take effect as of July 1, 2008, to coincide with the beginning of the “program year” for payment of these benefits.
The following chart compares the indexed amounts for the 2007 and 2008 tax years. It reflects an indexation increase of 1.9% for 2008.
Tax Bracket Thresholds
Taxable Income above which the 22-percent bracket begins
Taxable Income above which the 26-percent bracket begins
Taxable income above which the 29-percent bracket begins
Personal Amounts and Other Amounts Relating to Non-refundable Tax Credits
Basic personal amount (See note below)
Net income threshold
Spouse or common-law partner amount (See note below)
Amount for an eligible dependant (See note below)
Amount for children under age 18 (maximum per child)
Canada employment amount
Net income threshold
Supplement for children with disabilities
Allowable child care and attendant care expenses
Maximum adoption expense amount (per adoption)
Medical expense tax credit—3 percent of net income ceiling
Refundable medical expense supplement
Minimum earnings threshold
Family net income threshold
Old Age Security repayment threshold
Goods and Services Tax Credit (GSTC)
Phase-in threshold for the single supplement
Family net income at which credit begins to phase out
Canada Child Tax Benefit
Additional benefit for third child
Family net income at which base benefit begins to phase out
National Child Benefit (NCB) Supplement
Family net income at which NCB supplement begins to phase out
Family net income at which NCB supplement phase-out is complete
Child Disability Benefit
Family net income at which benefit begins to phase out
Child Special Allowance (CSA)
CSA base amount
Under changes announced on October 30, 2007, in the 2007 Economic Statement, the basic personal amount, the maximum spouse or common-law partner amount, and the amount for an eligible dependant are increased to $9,600 for the 2007 and 2008 tax years.
As announced in the 2007 Federal Budget, the net income threshold has been eliminated effective for 2007 and subsequent tax years. The spouse or common-law partner amount and the amount for an eligible dependant are calculated by subtracting the net income for the spouse/common-law partner or the dependant, as applicable, from the maximum amount ($9,600 for 2007 and 2008).
SOURCE: CRA Media Room