2010 indexation adjustment for personal income tax and benefit amount

Share it with your friends Like

Thanks! Share it with your friends!

Close

cra-leafThe following is now available on the CRA Web site:

Fact sheet

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, 2010. However, 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 on July 1, 2010, to coincide with the beginning of the program year for payment of these benefits.

The following chart compares the indexed amounts for the 2009 and 2010 tax years. It reflects an indexation increase of 0.6% for 2010.

  2010 ($) 2009 ($)

Tax bracket thresholds

Taxable income above which the 22% bracket begins 40,970  40,726[1] 
Taxable income above which the 26% bracket begins 81,941  81,4521 
Taxable income above which the 29% bracket begins 127,021  126,264 

Amounts relating to non‑refundable tax credits

Basic personal amount 10,382  10,3201 
Age amount 6,446  6,4081 
Net income threshold 32,506  32,312 
Spouse or common-law partner amount (max.) 10,382  10,3201 
Amount for an eligible dependant (max.) 10,382  10,3201 
Amount for children under age 18 (max. per child) 2,101  2,089 
Canada employment amount (max.) 1,051  1,044 
Infirm dependant amount (max. per dependant) 4,223  4,198 
Net income threshold 5,992  5,956 
Caregiver amount (max. per dependant) 4,223  4,198 
Net income threshold 14,422  14,336 
Disability amount 7,239  7,196 
Supplement for children with disabilities (max.) 4,223  4,198 
Threshold relating to allowable child care and attendant care expenses 2,473  2,459 
Adoption expenses (max. per adoption) 10,975  10,909 
Medical expense tax credit—3% of net income ceiling 2,024  2,011 

Refundable medical expense supplement

  Maximum supplement 1,074  1,067 
  Minimum earnings threshold 3,135  3,116 
  Family net income threshold 23,775  23,633 
Old Age Security repayment threshold  66,733  66,335 

Certain board and lodging allowances paid to players
on sports teams or members of recreation programs

Income exclusion (max. per month) 315  313 

Tradesperson’s tools deduction

Threshold amount relating to cost of eligible tools 1,051  1,044 

Goods and services tax credit 

Adult maximum 250  248 
Child maximum 131  130 
Single supplement 131  130 
Phase-in threshold for the single supplement 8,096  8,047 
Family net income at which credit begins to phase out 32,506  32,312 

Canada Child Tax Benefit 

Base benefit 1,348  1,340 
Additional benefit for third child 94  93 
Family net income at which base benefit begins to phase out 40,970  40,7261 

National Child Benefit (NCB) supplement

First child 2,088  2,076 
Second child 1,848  1,837 
Third child 1,758  1,747 
Family net income at which NCB supplement begins to phase out 23,855  23,710[2] 
Family net income at which NCB supplement phase-out is complete 40,970  40,7261 

Canada Disability Benefit (CDB) 

Maximum benefit 2,470  2,455 
Family net income at which CDB supplement begins to phase out 40,970  40,7261 

Children’s Special Allowances (CSA)

CSA Base Amount 3,436  3,416 

Notes:

[1] Under changes announced in the January 27, 2009 Federal Budget, certain values changed for 2009 as follows:

* The upper taxable income threshold of the 15% tax bracket was increased to $40,726.
* The upper taxable income threshold of the 22% tax bracket was increased to $81,452.
* The basic personal amount, the maximum spouse or common-law partner amount, and the maximum amount for an eligible dependant were increased to $10,320.
* The maximum age amount was increased to $6,408.
* The family net income at which the CCTB and CDB begins to be phased out and at which the NCB supplement phase-out is complete for most families, changed to $40,726.

[2] The 2009 value increased to $23,710 as a result of changes to the federal tax bracket threshold amounts as noted in Note 1, above.

SOURCE: CRA Newsroom

Comments

Write a comment

*

*