Ontario Basic Personal Amount

Definition

The Ontario Basic Personal Amount (BPA) is a non-refundable tax credit available to every Ontario resident for the tax year. It reduces Ontario tax payable by an amount equal to the BPA multiplied by the lowest Ontario tax rate of 5.05%. The Ontario BPA is indexed annually for inflation and is separate from (and significantly smaller than) the federal BPA. It is claimed on Form ON428, Ontario Tax, on line 58040. Unlike the federal BPA, Ontario's BPA does not phase out for higher-income taxpayers; every filer receives the full amount.

Key rules

• The Ontario BPA for 2025 was approximately $12,399. For 2026, the indexed amount is projected to be approximately $12,747 (confirm against the CRA's Form ON428 for 2026).
• The credit equals BPA × 5.05%. For 2026, that is approximately $12,747 × 5.05% = $643.72 of Ontario tax reduction.
• The BPA is a non-refundable credit: it can reduce Ontario tax to zero but cannot generate a refund on its own.
• Spouses and dependants: a Spouse or Common-Law Partner Amount and a Dependant Amount are available (lines 58120 and 58160), each providing a similar structure. These are reduced dollar-for-dollar by the spouse's or dependant's net income.
• Part-year residents prorate the BPA based on days resident in Ontario during the tax year.

Example

An Ontario student earns $20,000 in 2026 from a summer and part-time job. Ontario tax before credits: $20,000 × 5.05% = $1,010. The Ontario BPA credit is approximately $12,747 × 5.05% = $643.72. Federal tax follows a parallel computation using the federal BPA. The student's Ontario tax net of the BPA is $1,010 − $643.72 = $366.28 (before other credits such as CPP/EI credits and the tuition credit, if applicable). Combined with federal tax, the student ends up with a modest total tax liability.

Common mistakes

• Assuming Ontario BPA equals the federal BPA. The federal BPA for 2026 is projected near $16,129, significantly higher than Ontario's approximately $12,747. They must be computed independently.
• Forgetting that BPA is non-refundable. Excess credit cannot be carried forward or refunded; plan RRSP contributions to avoid stacking non-refundable credits when tax payable is already low.
• Double-claiming Spouse or Dependant amounts when the dependant has income above the base. The credit is reduced dollar-for-dollar by the dependant's or spouse's net income above a nominal threshold.
• Not prorating for part-year residents. A person who moved to Ontario mid-year claims the Ontario BPA only for the portion of the year they were a resident.

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