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2007 Indexation Adjustment for Personal Income Taxes
Each year since 2000, personal income tax amounts have been indexed to inflation using the Consumer Price Index data, as reported by Statistics Canada.
Changes to tax bracket thresholds and non-refundable credits will take effect as of January 1, 2007. Adjustments 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, 2007, to coincide with the beginning of the "program year" for these benefits.
The following chart compares the indexed amounts for the 2006 and 2007 tax years and reflects an indexation adjustment of 2.2% in 2007.
2007
2006
($)
($)
Personal Amounts and Bracket Thresholds
Basic personal amount [Footnote 1]8,929
8,839
Spouse or common-law partner amount [Footnote 1]
7,581
7,505
Net income threshold [Footnote 1]
759
751
Taxable Income at which 22-per-cent bracket begins
37,178
36,378
Taxable Income at which 26-per-cent bracket begins
74,357
72,756
Taxable income at which 29-per-cent bracket begins
120,887
118,285
Credit Amounts to Reflect Needs
Infirm dependant amount
4,019
3,933
Net income threshold
5,702
5,580
Caregiver amount
4,019
3,933
Net income threshold
13,726
13,430
Disability amount
6,890
6,741
Amount for children with disabilities
4,019
3,933
Allowable child care and attendant care expenses
2,354
2,303
Maximum adoption expense amount
10,445
10,220
Medical expense tax credit—3 per cent of net income ceiling
1,926
1,884
Maximum refundable medical expense supplement
1,022
1,000
Minimum earnings threshold
2,984
2,919
Family net income threshold
22,627
22,140
Age amount [Footnote 2]
5,177
5,066
Net income threshold
30,936
30,270
Old Age Security repayment threshold
63,511
62,144
Goods and Services Tax Credit (GSTC) [Footnote 3]
Adult maximum
237
232
Child maximum
125
122
Single supplement
125
122
Phase-in threshold for the single supplement
7,705
7,539
Family net income at which credit begins to phase out
30,936
30,270
Canada Child Tax Benefit [Footnote 3]
Base benefit
1,283
1,255
Additional benefit for third child
90
88
Additional benefit for children under 7 years [Footnote 4]
-
249
Family net income at which base benefit begins to phase out
37,178
36,378
National Child Benefit (NCB) Supplement[Footnote 3]
First child
1,988
1,945
Second child
1,758
1,720
Third child
1,673
1,637
Family net income at which NCB supplements begins to phase out
20,883
20,435
Family net income at which NCB supplement phase-out is complete
37,178
36,378
Child Disability Benefit
Maximum benefit
2,351
2,300
Family net income at which benefit begins to phase out
37,178
36,378
Child Special Allowance (CSA)
CSA base amount
3,271
3,200
Notes:
[Footnote 1] The basic personal amount is indexed using a deemed base of $8,639. The spouse or common-law partner amount is indexed using a deemed base of $7,335, while the net income threshold is indexed using a deemed base of $734. The resulting amounts are then increased by $100 for the basic personal amount, $85 for the spouse or common-law partner amount, and $8.50 for the net income threshold. The deemed base amounts and other increases were specified in Budget 2006.
[Footnote 2] On October 31, 2006, the Minister of Finance proposed an increase in the age amount from $4,066 to $5,066 for 2006.
[Footnote 3] The GSTC and the Canada Child Tax Benefit (including the National Child Benefit supplement and Child Disability Benefit) are paid on a benefit-year cycle beginning in July.
[Footnote 4] The under 7 supplement is being phased out beginning in the 2006-07 benefit year.
Each year since 2000, personal income tax amounts have been indexed to inflation using the Consumer Price Index data, as reported by Statistics Canada.
Changes to tax bracket thresholds and non-refundable credits will take effect as of January 1, 2007. Adjustments to the Canada Child Tax Benefit (including the National Child Benefit supplement and the Child Disability Benefit) and the Goods and Services Tax Credit will take effect as of July 1, 2007, to coincide with the beginning of the "program year" for these benefits.
The following chart compares the indexed amounts for the 2006 and 2007 tax years and reflects an indexation adjustment of 2.2% in 2007.
2007
2006
($)
($)
Personal Amounts and Bracket Thresholds
Basic personal amount [Footnote 1]8,929
8,839
Spouse or common-law partner amount [Footnote 1]
7,581
7,505
Net income threshold [Footnote 1]
759
751
Taxable Income at which 22-per-cent bracket begins
37,178
36,378
Taxable Income at which 26-per-cent bracket begins
74,357
72,756
Taxable income at which 29-per-cent bracket begins
120,887
118,285
Credit Amounts to Reflect Needs
Infirm dependant amount
4,019
3,933
Net income threshold
5,702
5,580
Caregiver amount
4,019
3,933
Net income threshold
13,726
13,430
Disability amount
6,890
6,741
Amount for children with disabilities
4,019
3,933
Allowable child care and attendant care expenses
2,354
2,303
Maximum adoption expense amount
10,445
10,220
Medical expense tax credit—3 per cent of net income ceiling
1,926
1,884
Maximum refundable medical expense supplement
1,022
1,000
Minimum earnings threshold
2,984
2,919
Family net income threshold
22,627
22,140
Age amount [Footnote 2]
5,177
5,066
Net income threshold
30,936
30,270
Old Age Security repayment threshold
63,511
62,144
Goods and Services Tax Credit (GSTC) [Footnote 3]
Adult maximum
237
232
Child maximum
125
122
Single supplement
125
122
Phase-in threshold for the single supplement
7,705
7,539
Family net income at which credit begins to phase out
30,936
30,270
Canada Child Tax Benefit [Footnote 3]
Base benefit
1,283
1,255
Additional benefit for third child
90
88
Additional benefit for children under 7 years [Footnote 4]
-
249
Family net income at which base benefit begins to phase out
37,178
36,378
National Child Benefit (NCB) Supplement[Footnote 3]
First child
1,988
1,945
Second child
1,758
1,720
Third child
1,673
1,637
Family net income at which NCB supplements begins to phase out
20,883
20,435
Family net income at which NCB supplement phase-out is complete
37,178
36,378
Child Disability Benefit
Maximum benefit
2,351
2,300
Family net income at which benefit begins to phase out
37,178
36,378
Child Special Allowance (CSA)
CSA base amount
3,271
3,200
Notes:
[Footnote 1] The basic personal amount is indexed using a deemed base of $8,639. The spouse or common-law partner amount is indexed using a deemed base of $7,335, while the net income threshold is indexed using a deemed base of $734. The resulting amounts are then increased by $100 for the basic personal amount, $85 for the spouse or common-law partner amount, and $8.50 for the net income threshold. The deemed base amounts and other increases were specified in Budget 2006.
[Footnote 2] On October 31, 2006, the Minister of Finance proposed an increase in the age amount from $4,066 to $5,066 for 2006.
[Footnote 3] The GSTC and the Canada Child Tax Benefit (including the National Child Benefit supplement and Child Disability Benefit) are paid on a benefit-year cycle beginning in July.
[Footnote 4] The under 7 supplement is being phased out beginning in the 2006-07 benefit year.
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