Ontario Basic Personal Amount

Definition

The Ontario Basic Personal Amount (BPA) is claimed on Form ON428 at line 58040 and converted to a non-refundable credit at 5.05%. It is separate from the federal BPA and has no high-income phase-out. It reduces basic provincial tax; the final Ontario calculation also includes other credits, surtax, reductions, and the Health Premium. Special rules can limit claims for newcomers, emigrants, or bankruptcy returns.

Key rules

• The CRA's 2026 Ontario tables specify a BPA of $12,989. The 2025 amount was $12,747.
• The direct credit is $12,989 × 5.05% = $655.94, rounded to cents. Where surtax applies, reducing the underlying tax can also reduce surtax.
• The BPA is a non-refundable credit: it can reduce Ontario tax to zero but cannot generate a refund on its own.
• Spouse and eligible-dependant claims have their own eligibility tests, base amounts, and income limits. Do not substitute the BPA for those calculations.
• A move between Canadian provinces does not itself prorate the BPA. A full-year Canadian resident generally uses the province of residence on December 31. Newcomers and emigrants may need to reduce corresponding provincial claims when their federal claims are reduced.

Example

An Ontario resident has $20,000 of taxable income in 2026 and is entitled to the full BPA. Bracket tax is $1,010. After only the BPA credit, the balance is $1,010 − $655.94 = $354.06. This is an intermediate amount, not the final bill: other eligible credits, the Ontario tax reduction, and the LIFT credit may reduce it further. The Health Premium is zero at taxable income of $20,000.

Common mistakes

• Using the 2025 BPA or the old 15% federal credit rate in a 2026 calculation.
• Forgetting that BPA is non-refundable. Any unused credit cannot be carried forward or paid out as a refund.
• Treating a spouse or dependant claim as an automatic second BPA.
• Prorating because of an interprovincial move, or overlooking the different rules for entering or leaving Canada.

Related concepts

• Ontario Personal Tax Brackets
• Ontario Surtax
• Basic Personal Amount