2015 indexation adjustment for personal income tax, benefit amounts, and the annual dollar limit for Tax-Free Savings Accounts (TFSAs)

08 Jan 2015

BY a1accounting
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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, 2015. 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, 2015, to coincide with the beginning of the program year for payment of these benefits.

The following chart compares the indexed amounts for the 2015 and 2015 tax years. It reflects an indexation increase of 1.7% for 2015.
	2015 ($)	2014 ($)
Tax bracket thresholds
Taxable income above which the 22% bracket begins	44,701	43,953
Taxable income above which the 26% bracket begins	89,401	87,907
Taxable income above which the 29% bracket begins	138,586	136,270
Amounts relating to non-refundable tax credits
Basic personal amount	11,327	11,138
Age amount	7,033	6,916
Net income threshold	35,466	34,873
Spouse or common-law partner amount (maximum)	11,327	11,138
Spouse or common-law partner amount (maximum if eligible for the family caregiver amount)	13,420	13,196
Amount for an eligible dependant (maximum)	11,327	11,138
Amount for an eligible dependant (maximum if dependant eligible for the family caregiver amount)	13,420	13,196
Amount for children under age 18 (maximum per child)	Not applicable ^{Footnote 1}	2,255
Amount for children under age 18 (maximum per child eligible for the family caregiver amount)	Not applicable ^{Footnote 1}	4,313
Family caregiver amount for children under age 18	2,093	Not applicable ^{Footnote 1}
Canada employment amount (maximum)	1,146	1,127
Infirm dependant amount (maximum per dependant)	6,700	6,589
Net income threshold	6,720	6,607
Caregiver amount (maximum per dependant)	4,608	4,530
Caregiver amount (maximum per dependant eligible for the family caregiver amount)	6,701	6,588
Net income threshold	15,735	15,472
Disability amount	7,899	7,766
Supplement for children with disabilities (maximum)	4,607	4,530
Threshold relating to allowable child care and attendant care expenses	2,699	2,654
Adoption expenses (maximum per adoption)	15,255	15,000 ^{Footnote 2}
Medical expense tax credit—3% of net income ceiling	2,208	2,171
Refundable medical expense supplement
Maximum supplement	1,172	1,152
Minimum earnings threshold	3,421	3,363
Family net income threshold	25,939	25,506
Old age security repayment threshold	72,809	71,592
Certain board and lodging allowances paid to players on sports teams or members of recreation programs
Income exclusion (maximum per month)	344	338
Tradesperson’s tools deduction
Threshold amount relating to cost of eligible tools	1,146	1,127
Goods and services tax/harmonized sales tax credit
Adult maximum	272	268
Child maximum	143	141
Single supplement	143	141
Phase-in threshold for the single supplement	8,833	8,685
Family net income at which credit begins to phase out	35,465	34,872
Canada child tax benefit
Base benefit	1,471	1,446
Additional benefit for third child	103	101
Family net income at which base benefit begins to phase out	44,701	43,953
National child benefit (NCB) supplement
First child	2,279	2,241
Second child	2,016	1,982
Third child	1,918	1,886
Family net income at which NCB supplement begins to phase out	26,021	25,584
Family net income at which NCB supplement phase-out is complete	44,701	43,953
Child disability benefit (CDB)
Maximum benefit	2,695	2,650
Family net income at which CDB supplement begins to phase out	44,701	43,953
Children’s special allowances (CSA)
CSA Base Amount	3,750	3,687
Tax-Free Savings Account (the indexed amount has been rounded to the nearest $500)
Annual TFSA dollar limit	5,500	5,500
Lifetime capital gains exemption for qualified farm property, fishing property and small business corporation shares
Exemption limit	813,600	800,000 ^{Footnote 3}

Footnotes

Footnote 1

Under changes announced October 30, 2014, the enhanced Universal Child Care Benefit will replace the existing amount for children under 18 for the 2015 and subsequent taxation years. However the family caregiver amount will continue to be available in respect of an infirm minor child under 18.

Return to footnote 1 referrer

Footnote 2

Under changes announced in the 2014 Federal Budget, the maximum amount of eligible adoption expenses increased to $15,000 per child (indexed after 2014).

Return to footnote 2 referrer

Footnote 3

Under changes announced in the 2013 Federal Budget, the lifetime capital gains exemption limit for qualified farm property, qualified fishing property and qualified small business corporation shares increased to $800,000 of capital gains. Since one half of the capital gain is taxable, the lifetime capital gains deduction limit increased to $400,000 (indexed after 2014).

Return to footnote 3 referrer