The Basic Personal Amount (BPA) is the amount of income each Canadian can earn at the federal level without paying income tax. It is structured as a non-refundable tax credit equal to the BPA times the lowest federal tax rate. For 2026, the federal BPA is $16,452, generating a federal tax credit of $2,303 ($16,452 × 14%).
BPA phase-out for high-income earners
The BPA is reduced for high-income earners. The phase-out begins at the start of the fourth federal tax bracket and ends at the start of the top bracket. The reduced BPA for 2026 is $14,829 ($14,156 + $673 inflation adjustment, generating a $2,076 federal credit). The reduction effectively increases tax for high earners.
Provincial basic personal amounts
Each province sets its own basic personal amount with its own credit rate. Provincial BPAs are typically lower than the federal amount but combined with the federal credit, total tax-free income is around $13,000-$17,000 depending on province.
Recent federal BPA values
| Year | Federal BPA | Federal credit at lowest bracket rate |
|---|---|---|
| 2026 | $16,452 | $2,303 (14%) |
| 2025 | $16,129 | $2,419 (15%) |
| 2024 | $15,705 | $2,356 (15%) |