BPA (Basic Personal Amount)

The Basic Personal Amount (BPA) is a non-refundable tax credit available to every Canadian taxpayer. It effectively makes the first portion of your income tax-free. For 2025, the federal BPA is $16,129, credited at the "appropriate percentage" of 14.5% (the blended rate for the year the lowest bracket was cut from 15% to 14% mid-year) — a federal tax credit of $16,129 × 14.5% = $2,338.71, which reduces your federal tax payable. For 2026, the BPA rises to $16,452 and the credit rate settles at the full 14% ($16,452 × 14% = $2,303.28).

Each province and territory also has its own BPA, applied at the lowest provincial tax rate. Provincial BPAs range from about $8,000 to over $21,000 depending on the province. The combined federal and provincial BPA means that Canadians earning under approximately $16,000–$21,000 (depending on province) effectively pay no income tax.

The federal BPA is indexed to inflation and adjusted annually. For higher-income earners, the enhanced BPA is clawed back on a straight line down to the base amount as net income rises from the bottom of the 4th tax bracket to the bottom of the top bracket — for 2025 that's net income $177,882–$253,414, clawed back to a base of $14,538; for 2026 it's $181,440–$258,482, clawed back to a base of $14,829.