2012 indexation adjustment for personal income tax and benefit amounts

Most increases take place Jan. 1
|payroll-reporter.com|Last Updated: 11/23/2011

The Canada Revenue Agency (CRA) has released the indexation adjustment for person income tax and benefit amounts for 2012.

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

Increases to tax bracket thresholds, amounts relating to non‑refundable credits, and most other amounts will take effect on Jan. 1, 2012.

Increases to the Canada child tax benefit (including the national child benefit supplement and the child disability benefit) and the goods and services tax (GST) credit will take effect on July 1, 2012. This coincides with the beginning of the program year for payment of these benefits.

The following chart compares the indexed amounts for the 2011 and 2012 tax years. It reflects an indexation increase of 2.8 per cent for 2012.

2012
(in dollars)

2011
(in dollars)

Tax bracket thresholds

Taxable income above which the 22 per cent bracket begins

$42,707

$41,544

Taxable income above which the 26 per cent bracket begins

$85,414

$83,088

Taxable income above which the 29 per cent bracket begins

$132,406

$128,800

Amounts relating to non-refundable tax credits

Basic personal amount

$10,822

$10,527

Age amount

$6,720

$6,537

Net income threshold

$33,884

$32,961

Spouse or common-law partner amount (maximum)

$10,822

$10,527

Spouse or common-law partner amount (maximum if eligible for the family caregiver amount)

$12,822

N/A

Amount for an eligible dependant (maximum)

$10,822

$10,527

Amount for an eligible dependant (maximum if dependant eligible for the family caregiver amount)

$12,822

N/A

Amount for children under age 18 (maximum per child)

$2,191

$2,131

Amount for children under age 18 (maximum per child eligible for the family caregiver amount)

$4,191

N/A

Canada employment amount (maximum)

$1,095

$1,065

Infirm dependant amount (maximum per dependant)

$6,402 (includes family caregiver amount of $2,000)

$4,282

Net income threshold

$6,420

$6,076

Caregiver amount (maximum per dependant)

$4,402

$4,282

Caregiver amount (maximum per dependant eligible for the family caregiver amount)

$6,402

N/A

Net income threshold

$15,033

$14,624

Disability amount

$7,546

$7,341

Supplement for children with disabilities (maximum)

$4,402

$4,282

Threshold relating to allowable child care and attendant care expenses

$2,578

$2,508

Adoption expenses (maximum per adoption)

$11,440

$11,128

Medical expense tax credit — three per cent of net income ceiling

$2,109

$2,052

Refundable medical expense supplement

Maximum supplement

$1,119

$1,089

Minimum earnings threshold

$3,268

$3,179

Family net income threshold

$24,783

$24,108

Old Age Security repayment threshold

$69,562

$67,668

Certain board and lodging allowances paid to players
on sports teams or members of recreation programs

Income exclusion (maximum per month)

$329

$320

Tradesperson’s tools deduction

Threshold amount relating to cost of eligible tools

$1,095

$1,065

Goods and Services Tax/Harmonized Sales Tax credit

Adult maximum

$260

$253

Child maximum

$137

$133

Single supplement

$137

$133

Phase-in threshold for the single supplement

$8,439

$8,209

Family net income at which credit begins to phase out

$33,884

$32,961

Canada Child Tax Benefit

Base benefit

$1,405

$1,367

Additional benefit for third child

$98

$95

Family net income at which base benefit begins to phase out

$42,707

$41,544

National Child Benefit (NCB) supplement

First child

$2,177

$2,118

Second child

$1,926

$1,873

Third child

$1,832

$1,782

Family net income at which NCB supplement begins to phase out

$24,863

$24,183

Family net income at which NCB supplement phase-out is complete

$42,707

$41,544

Canada Disability Benefit (CDB)

Maximum benefit

$2,575

$2,504

Family net income at which CDB supplement begins to phase out

$42,707

$41,544

Children’s Special Allowances (CSA)

CSA Base Amount

$3,582

$3,485

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