Basic Personal Amount

Definition

The federal Basic Personal Amount (BPA) is the base for a non-refundable tax credit. It reduces federal income tax; it is not a deduction from income and cannot create a refund by itself. The amount available depends on net income, while the resulting credit is calculated at the lowest federal rate for the tax year.

Key rules

The CRA's annual indexation table gives the following federal amounts:

For 2026, a person with net income up to $181,440 qualifies for the maximum BPA. The extra $1,623 above the minimum is reduced as net income rises from $181,440 to $258,482. At or above $258,482, the minimum BPA remains available. Use net income for this test, not taxable income after deductions.

The maximum 2026 credit is $16,452 × 14% = $2,303.28. The minimum amount gives a credit of $14,829 × 14% = $2,076.06. The 2026 federal tax table confirms the current rate.

• Provinces and territories have their own personal amounts and credit rates. The federal amount does not replace them.
• Spouse and eligible-dependant amounts have separate conditions and income tests; they are not an automatic second BPA.
• Immigration, emigration and non-resident returns have additional eligibility and proration rules. Use the applicable CRA return instructions instead of assuming the full resident amount.

Example

A Manitoba resident has both net income and taxable income of $95,000 in 2026. Ignoring other credits, the federal calculation is:

First $58,523 at 14%                     $8,193.22
Remaining $36,477 at 20.5%               $7,477.79
Federal tax before credits             $15,671.01
BPA credit: $16,452 x 14%              ($2,303.28)
Federal tax after BPA alone             $13,367.73

Manitoba tax is separate. A second filer with net income of $280,000 uses the minimum 2026 BPA, so the federal reduction from this credit is $2,076.06. The credit is still available even though that filer has no enhanced amount left.

Common mistakes

• Using the filing year as the tax year. A 2025 return filed in 2026 uses the 2025 BPA and 14.5% rate.
• Using a 15% credit rate for either of the years in the table.
• Claiming the maximum amount without checking the net-income phase-down.
• Deducting the BPA from taxable income. It belongs in the credit calculation.
• Carrying an unused BPA credit forward. This particular credit is non-refundable and unused amounts do not carry forward.

Related concepts

The federal brackets calculate tax before credits. The BPA then reduces that tax on the T1 return, alongside other credits for which the filer qualifies.