Canada Revenue Agency

Canada Revenue Agency

December 19, 2007 13:32 ET

Canada Revenue Agency: 2008 Indexation Adjustment for Personal Income Taxes

OTTAWA, ONTARIO--(Marketwire - Dec. 19, 2007) - 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, personal amounts and other amounts relating to non-refundable credits, as well as the refundable medical expense supplement and Old Age Security repayment threshold, will take effect as of January 1, 2008. 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 as of July 1, 2008, to coincide with the beginning of the "program year" for payment of these benefits.

The following chart compares the indexed amounts for the 2007 and 2008 tax years. It reflects an indexation increase of 1.9% for 2008.



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2008 2007
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($) ($)
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Tax Bracket Thresholds
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Taxable Income above which the 22-percent bracket begins 37,885 37,178
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Taxable Income above which the 26-percent bracket begins 75,769 74,357
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Taxable income above which the 29-percent bracket begins 123,184 120,887
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Personal Amounts and Other Amounts Relating to
Non-refundable Tax Credits
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Basic personal amount (See note below) 9,600 9,600
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Age amount 5,276 5,177
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Net income threshold 31,524 30,936
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Spouse or common-law partner amount (See note below) 9,600 9,600
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Amount for an eligible dependant (See note below) 9,600 9,600
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Amount for children under age 18 (maximum per child) 2,038 2,000
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Canada employment amount 1,019 1,000
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Caregiver amount 4,095 4,019
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Net income threshold 13,986 13,726
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Disability amount 7,021 6,890
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Supplement for children with disabilities 4,095 4,019
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Allowable child care and attendant care expenses 2,399 2,354
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Maximum adoption expense amount (per adoption) 10,643 10,445
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Medical expense tax credit3 percent of net income ceiling 1,962 1,926
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Refundable medical expense supplement
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Maximum supplement 1,041 1,022
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Minimum earnings threshold 3,040 2,984
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Family net income threshold 23,057 22,627
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Old Age Security repayment threshold 64,718 63,511
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Goods and Services Tax Credit (GSTC)
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Adult maximum 242 237
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Child maximum 127 125
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Single supplement 127 125
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Phase-in threshold for the single supplement 7,851 7,705
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Family net income at which credit begins to phase out 31,524 30,936
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Canada Child Tax Benefit
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Base benefit 1,307 1,283
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Additional benefit for third child 91 90
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Family net income at which base benefit begins
to phase out 37,885 37,178
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National Child Benefit (NCB) Supplement
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First child 2,025 1,988
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Second child 1,792 1,758
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Third child 1,704 1,673
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Family net income at which NCB supplement begins
to phase out 21,287 20,883
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Family net income at which NCB supplement
phase-out is complete 37,885 37,178
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Child Disability Benefit
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Maximum benefit 2,395 2,351
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Family net income at which benefit begins to
phase out 37,885 37,178
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Child Special Allowance (CSA)
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CSA base amount 3,332 3,271
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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 amount for an eligible dependant are increased to $9,600 for the 2007 and 2008 tax years.

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

Contact Information

  • Canada Revenue Agency
    Beatrice Fenelon
    Media Relations
    613-941-6269