Basic Personal Amount (BPA) Canada 2026 Explained

The federal Basic Personal Amount (BPA) is the non-refundable tax credit that makes your first $16,452 of income effectively tax-free for earners below $181,440. It is worth $2,303.28 in federal tax savings at the full amount. Above $181,440 the BPA phases down, reaching $14,829 at $258,482.

How the BPA credit works

The BPA is not a deduction from income: it is a non-refundable tax credit. That means it reduces federal income tax directly. The credit is calculated by multiplying the BPA amount by the federal lowest marginal rate of 14%. At the full amount of $16,452, the credit is $2,303.28.

Because the credit applies at the lowest rate rather than your marginal rate, it is worth the same amount regardless of your income bracket, as long as your income stays below the phase-out threshold. This is different from a deduction, which would be worth more at higher rates.

The phase-out for high earners

Between net income of $181,440 and $258,482, the BPA decreases linearly from $16,452 to $14,829. The minimum BPA of $14,829 applies to everyone above $258,482, so even very high earners receive a small credit.

BPA amount and credit by income level

Net income Federal BPA Federal credit (14%)
$50,000 $16,452.00 $2,303.28
$100,000 $16,452.00 $2,303.28
$200,000 $16,061.01 $2,248.54
$250,000 $15,007.69 $2,101.08

The BPA on your TD1 form

When you start a new job in Canada, you complete a TD1 (Personal Tax Credits Return) form. Line 1 asks for your BPA claim. If you fill in the full amount, your employer uses it to reduce the income tax withheld from each paycheque. If you have multiple employers, only one can apply the full BPA: mark "0" on the second employer's TD1 to avoid an underpayment at year-end.

Provincial BPA

Each province also has its own Basic Personal Amount. The provincial BPA generates a separate credit at the province's lowest rate, and both federal and provincial credits appear on Schedule 1 and the provincial tax calculation together. Ontario's provincial BPA for 2026 is $12,747.

See both credits in action in the Canada salary calculator, which shows the combined federal and provincial credits at every income level.

Frequently asked questions

Does every Canadian resident get the BPA?

Yes. Every Canadian tax resident filing a federal return claims the Basic Personal Amount as a non-refundable tax credit on Schedule 1. It is automatic: you do not need to apply separately. Your employer also uses the BPA when computing payroll withholding based on your TD1 form. The full BPA of $16,452 applies to incomes up to $181,440; above that it phases down to a minimum of $14,829.

Why does the BPA go down for high earners?

Parliament introduced a phased reduction of the BPA in 2020 as a way to target the benefit toward lower and middle earners. Between $181,440 and $258,482 of net income the BPA phases linearly from $16,452 down to $14,829. Above $258,482 the BPA is fixed at $14,829. The resulting credit at the lowest 14% rate ranges from $2,303 at the full amount to $2,076 at the minimum.

Is the provincial BPA the same as the federal one?

No. Each province sets its own Basic Personal Amount, and the amounts vary widely. Ontario uses $12,747 (2026). Alberta uses $21,003. Quebec uses $18,952 and has its own provincial tax return. Some provinces also phase out their BPA at high incomes. The provincial BPA generates a credit at the province's lowest rate rather than the federal 14%, and both the federal and provincial credits appear together on your tax return.

Sources: CRA T4127 (122nd edition, January 2026). Last updated 2026-11-04.