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Last updated: October 27 2015
Consumer Price Index for September Determines Indexation for 2016
Indexation of tax brackets and personal amounts for 2016 is determined by the average CPI numbers for the twelve months ending September 2015 (which were announced last week).
Per our calculations, the federal indexation value is 1.2711%, which will be rounded to 1.3%. In provinces where provincial amounts are indexed, the provincial factor depends on province-specific CPI numbers.
Although the federal government has yet to announce the new tax figures, here’s an estimate of what the income brackets and income-tax rates will be, assuming the Liberal election platform is implemented for January 1, 2016.
| 2015 Brackets | 2015 Rates | 2016 Brackets | 2016 Rates |
| Up to $11,327 | 0 | Up to $11,474 | 0 |
| $11,328 to $44,701 | 15% | $11,475 to $45,282 | 15% |
| $44,702 to $89,401 | 22% | $45,283 to $90,563 | 20.5% |
| $89,402 to $138,586 | 26% | $90,564 to $140,388 | 26% |
| Over $138,586 | 29% | $140,389 to $200,000 | 29% |
| Over $200,000 | 33% |
Most personal amounts are indexed by the same factor. Below is our estimate of these amounts for 2016:
| Personal Amounts | 2015 | 2016 | |
| Basic Personal Amount | Maximum Claim1 | $11,327 | $11,474 |
| Age Amount |
Maximum Claim1 Reduced by net income over1 |
$7,033 $35,466 |
$7,124 $35,927 |
| Spouse or Common-Law Partner Amount |
Not infirm1 Infirm1 |
$11,327 $13,420 |
$11,474 $13,594 |
| Eligible Child under 18 |
Not infirm1 Infirm (Family Caregiver)1 |
$0 $2,093 |
$0 $2,120 |
| Amount for Eligible Dependants |
Not infirm1 Infirm1 |
$11,327 $13,420 |
$11,474 $13,594 |
| Amount for Infirm Dependants |
Maximum Claim1 Reduced by net income over1 |
$6,700 $6,720 |
$6,787 $6,807 |
| Pension Income Amount | Maximum Claim | $2,000 | $2,000 |
| Adoption Expenses | Maximum Claim1 | $15,255 | $15,453 |
| Caregiver Amount |
Not infirm1 Infirm1 Reduced by net income over1 |
$4,608 $6,701 $15,735 |
$4,668 $6,788 $15,940 |
| Disability Amount |
Basic Amount1 Supplementary Amount1 Base Child Care Amount1 |
$7,899 $4,607 $2,699 |
$8,002 $4,667 $2,734 |
|
Tuition and Education Amounts +Textbook Tax Credit |
Minimum Tuition Full-time Education Amt. (per month) Part-time Education Amt. (per month) |
$100 $400 +$65 $120 +$20 |
$100 $400 +$65 $120 +$20 |
| Medical Expenses | 3% limitation1 | $2,208 | $2,237 |
| Refundable Medical Expense Credit |
Maximum1 Base Family Income1 Minimum earned income1 |
$1,172 $25,939 $3,421 |
$1,187 $26,276 $3,465 |
| Donation Credit | Low-rate ceiling | $200 | $200 |
| First-Time Donations |
Rate Maximum Donation |
25% $1,000 |
25% $1,000 |
| Canada Employment Amount | Maximum1 | $1,146 | $1,161 |
| Children’s Fitness Amount | Maximum | N/A | N/A |
| Home Buyers’ Amount | Maximum | $5,000 | $5,000 |
| Children’s Arts Amount | Maximum | $500 | $500 |
| Volunteer Firefighters | $3,000 | $3,000 | |
| Volunteer Search and Rescue | $3,000 | $3,000 | |
| Home Accessibility Tax Credit | Maximum claim | $10,000 | $10,000 |
1 These amounts are indexed
