CRA releases 2013 indexation adjustment for personal taxes, benefits

2 per cent adjustments applies to personal income tax, benefit amounts, annual dollar limit for TFSAs
|payroll-reporter.com|Last Updated: 12/13/2012

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

Increases to tax bracket thresholds, amounts relating to non refundable credits, the annual tax-free savings account (TFSA) dollar limit, and most other amounts will take effect on Jan. 1, 2013. 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 on July 1, 2013, to coincide with the beginning of the program year for payment of these benefits.

The following chart compares the indexed amounts for the 2012 and 2013 tax years. It reflects an indexation increase of two per cent for 2013.

2013 ($)2012 ($)
Tax bracket thresholds
Taxable income above which the 22% bracket begins43,56142,707
Taxable income above which the 26% bracket begins87,12385,414
Taxable income above which the 29% bracket begins135,054132,406
Amounts relating to non-refundable tax credits
Basic personal amount11,03810,822
Age amount6,8546,720
Net income threshold34,56233,884
Spouse or common-law partner amount (maximum)11,03810,822
Spouse or common-law partner amount (maximum if eligible for the family caregiver amount)13,07812,822
Amount for an eligible dependant (maximum)11,03810,822
Amount for an eligible dependant (maximum if dependant eligible for the family caregiver amount)13,07812,822
Amount for children under age 18 (maximum per child)2,2342,191
Amount for children under age 18 (maximum per child eligible for the family caregiver amount)  4,2744,191
Canada employment amount (maximum)1,1171,095
Infirm dependant amount (maximum per dependant)6,5306,402
Net income threshold6,5486,420
Caregiver amount (maximum per dependant)4,4904,402
Caregiver amount (maximum per dependant eligible for the family caregiver amount)6,5306,402
Net income threshold15,33415,033
Disability amount7,6977,546
Supplement for children with disabilities (maximum)4,4904,402
Threshold relating to allowable child care and attendant care expenses2,6302,578
Adoption expenses (maximum per adoption)11,66911,440
Medical expense tax credit—3% of net income ceiling2,1522,109
Refundable medical expense supplement
Maximum supplement1,1421,119
Minimum earnings threshold3,3333,268
Family net income threshold25,27824,783
Old age security repayment threshold70,95469,562
Certain board and lodging allowances paid to players
on sports teams or members of recreation programs
Income exclusion (maximum per month)335329
Tradesperson’s tools deduction
Threshold amount relating to cost of eligible tools1,1171,095
Goods and services tax/harmonized sales tax credit
Adult maximum265260
Child maximum139137
Single supplement139137
Phase-in threshold for the single supplement8,6088,439
Family net income at which credit begins to phase out34,56133,884
Canada child tax benefit
Base benefit1,4331,405
Additional benefit for third child10098
Family net income at which base benefit begins to phase out43,56142,707
National child benefit (NCB) supplement
First child2,2212,177
Second child1,9641,926
Third child1,8691,832
Family net income at which NCB supplement begins to phase out25,35624,863
Family net income at which NCB supplement phase-out is complete43,56142,707
Child disability benefit (CDB)
Maximum benefit2,6262,575
Family net income at which CDB supplement begins to phase out43,56142,707
Children’s special allowances (CSA)
CSA Base Amount3,6543,582
Tax-Free Savings Account (the indexed amount has been rounded to the nearest $500)
Annual TFSA dollar limit5,5005,000

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