CRA releases 2013 indexation adjustment for personal taxes, benefits

Each year, certain personal income tax and benefit amounts are indexed to inflation using the consumer price index data as reported by Statistics Canada, according to the Canada Revenue Agency (CRA).

Increases to tax bracket thresholds, amounts relating to non refundable credits, the annual tax-free savings account (TFSA) dollar limit, and most other amounts will take effect on Jan. 1, 2013. 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, 2013, to coincide with the beginning of the program year for payment of these benefits.

The following chart compares the indexed amounts for the 2012 and 2013 tax years. It reflects an indexation increase of two per cent for 2013.

	2013 ($)	2012 ($)
Tax bracket thresholds
Taxable income above which the 22% bracket begins	43,561	42,707
Taxable income above which the 26% bracket begins	87,123	85,414
Taxable income above which the 29% bracket begins	135,054	132,406
Amounts relating to non-refundable tax credits
Basic personal amount	11,038	10,822
Age amount	6,854	6,720
Net income threshold	34,562	33,884
Spouse or common-law partner amount (maximum)	11,038	10,822
Spouse or common-law partner amount (maximum if eligible for the family caregiver amount)	13,078	12,822
Amount for an eligible dependant (maximum)	11,038	10,822
Amount for an eligible dependant (maximum if dependant eligible for the family caregiver amount)	13,078	12,822
Amount for children under age 18 (maximum per child)	2,234	2,191
Amount for children under age 18 (maximum per child eligible for the family caregiver amount)	4,274	4,191
Canada employment amount (maximum)	1,117	1,095
Infirm dependant amount (maximum per dependant)	6,530	6,402
Net income threshold	6,548	6,420
Caregiver amount (maximum per dependant)	4,490	4,402
Caregiver amount (maximum per dependant eligible for the family caregiver amount)	6,530	6,402
Net income threshold	15,334	15,033
Disability amount	7,697	7,546
Supplement for children with disabilities (maximum)	4,490	4,402
Threshold relating to allowable child care and attendant care expenses	2,630	2,578
Adoption expenses (maximum per adoption)	11,669	11,440
Medical expense tax credit—3% of net income ceiling	2,152	2,109
Refundable medical expense supplement
Maximum supplement	1,142	1,119
Minimum earnings threshold	3,333	3,268
Family net income threshold	25,278	24,783
Old age security repayment threshold	70,954	69,562
Certain board and lodging allowances paid to players on sports teams or members of recreation programs
Income exclusion (maximum per month)	335	329
Tradesperson’s tools deduction
Threshold amount relating to cost of eligible tools	1,117	1,095
Goods and services tax/harmonized sales tax credit
Adult maximum	265	260
Child maximum	139	137
Single supplement	139	137
Phase-in threshold for the single supplement	8,608	8,439
Family net income at which credit begins to phase out	34,561	33,884
Canada child tax benefit
Base benefit	1,433	1,405
Additional benefit for third child	100	98
Family net income at which base benefit begins to phase out	43,561	42,707
National child benefit (NCB) supplement
First child	2,221	2,177
Second child	1,964	1,926
Third child	1,869	1,832
Family net income at which NCB supplement begins to phase out	25,356	24,863
Family net income at which NCB supplement phase-out is complete	43,561	42,707
Child disability benefit (CDB)
Maximum benefit	2,626	2,575
Family net income at which CDB supplement begins to phase out	43,561	42,707
Children’s special allowances (CSA)
CSA Base Amount	3,654	3,582
Tax-Free Savings Account (the indexed amount has been rounded to the nearest $500)
Annual TFSA dollar limit	5,500	5,000