Fact sheet

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2009 indexation adjustment for personal income taxes

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, amounts relating to non-refundable credits, and most other amounts will take effect on January 1, 2009. 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, 2009, to coincide with the beginning of the program year for payment of these benefits.

The following chart compares the indexed amounts for the 2008 and 2009 tax years. It reflects an indexation increase of 2.5% for 2009.

2009
($)

2008
($)

Tax Bracket Thresholds
Taxable income above which the 22% bracket begins 38,832 37,885
Taxable income above which the 26% bracket begins 77,664 75,769
Taxable income above which the 29% bracket begins 126,264 123,184
Amounts relating to non-refundable tax credits
Basic personal amount (See footnote below) 10,100 9,600
Age amount 5,408 5,276
Net income threshold 32,312 31,524
Spouse or common-law partner amount (maximum) (See footnote below) 10,100 9,600
Amount for an eligible dependant (maximum) (See footnote below) 10,100 9,600
Amount for children under age 18 (maximum per child) 2,089 2,038
Canada employment amount (maximum) 1,044 1,019
Infirm dependant amount (maximum per dependant) 4,198 4,095
Net income threshold 5,956 5,811
Caregiver amount (maximum per dependant) 4,198 4,095
Net income threshold 14,336 13,986
Disability amount 7,196 7,021
Supplement for children with disabilities (maximum) 4,198 4,095
Threshold relating to allowable child care and attendant care expenses 2,459 2,399
Adoption expenses (maximum per adoption) 10,909 10,643
Medical expense tax credit—3% of net income ceiling 2,011 1,962
Refundable medical expense supplement
Maximum supplement 1,067 1,041
Minimum earnings threshold 3,116 3,040
Family net income threshold 23,633 23,057
Old Age Security repayment threshold 66,335 64,718
Certain board and lodging allowances paid to players on sports teams or members of recreation programs
Income exclusion (maximum per month) 313 306
Tradesperson's tools deduction
Threshold amount relating to cost of eligible tools 1,044 1,019
Goods and Services Tax Credit
Adult maximum 248 242
Child maximum 130 127
Single supplement 130 127
Phase-in threshold for the single supplement 8,047 7,851
Family net income at which credit begins to phase out 32,312 31,524
Canada Child Tax Benefit
Base benefit 1,340 1,307
Additional benefit for third child 93 91
Family net income at which base benefit begins to phase out 38,832 37,885
National Child Benefit (NCB) Supplement
First child 2,076 2,025
Second child 1,837 1,792
Third child 1,747 1,704
Family net income at which NCB supplement begins to phase out 21,816 21,287
Family net income at which NCB supplement phase-out is complete 38,832 37,885
Child Disability Benefit (CDB)
Maximum benefit 2,455 2,395
Family net income at which CDB supplement begins to phase out 38,832 37,885
Children's Special Allowances (CSA)
CSA base amount 3,416 3,332

Note:

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 maximum amount for an eligible dependant were increased to $9,600 for the 2007 and 2008 tax years, and are further increased to $10,100 for 2009.

As announced in the 2007 Federal Budget, the net income threshold has been eliminated for the 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 of the spouse or common-law partner or the dependant, as applicable, from the maximum amount ($10,100 for 2009, $9,600 for 2007 and 2008).

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Date modified:
2014-12-03