The Basic Personal Amount and the Spousal Amount

Key Takeaways

The Basic Personal Amount and the Spousal Amount are a federal non-refundable credit which reduce the amount of tax payable.

The Basic Personal and the Spousal Amounts fluctuate based on the individual’s net income.

The spousal amount is reduced by the spouse’s income.

The Basic Personal Amount (BPA) (line 30000) is a federal non-refundable tax credit in Canada that reduces the amount of income tax payable. A non-refundable tax credit reduces what you may owe. However, if your total non-refundable tax credits are more than what you owe, you will not get a refund for the difference. Starting in 2023, it’s based on your net income for the year. The maximum basic personal amount for individuals with a net income less than $173,205 is $15,705. For individuals with a net income more than $173,205, the base amount is reduced to $14,156. In previous years, the amount varied, but the goal is to keep it in line with inflation. For example, in 2021, the basic personal amount was set at $13,808 for taxpayers with a net income of $150,473 or less, for 2022, it increased to $14,398, and for 2023 the amount was $15,000.

To demonstrate how the personal amount is linked to the individual’s net income, lets look at an example. Let’s assume John’s net income for 2024 is $250,000:

As you can see from the example, John could still receive additional partial amounts if his income was less than the threshold.

The Spouse or Common-Law Partner Amount (line 30300) is a non-refundable tax credit that you can claim if, at any time during the year, you supported your spouse or common-law partner, and their net income from line 23600 of their tax return (or the amount it would be if they filed a return) was less than your basic personal amount. The spousal amount moves in tandem with the basic personal amount. For the 2024 tax year the spousal amount is set at $15,705. If your spouse or partner was also dependent on you due to an impairment in physical or mental functions, you can claim an additional amount. Only one spouse or common-law partner can claim this amount for each other in the same tax year.

The credit is calculated by subtracting your partner’s net income from $15,000 and multiplying the remainder by 15%. The maximum credit is $2,250 ($15,000 x 15%).

The corresponding provincial or territorial non-refundable tax credit on line 58120 of your provincial or territorial Form 428.

For further information please contact Taxtron Support at 416-491-0333 or visit www.taxtron.ca