The basic personal amount (BPA) tax credit: How to reduce the taxes you owe
- The basic personal amount (BPA) is a tax credit that can help you lower your federal and provincial or territorial tax bill.
- For 2026, the federal BPA is $16,452 if your net income is $181,440 or less. It drops to $14,829 once your net income reaches $258,482.
- Provinces and territories have their own BPAs, which are separate from the federal BPA.
- The BPA is non-refundable, which means it can reduce the tax you owe but won’t create a refund for any unused amount.
- You may be able to claim the spouse or common-law partner amount to help lower your household tax bill.
In Canada, one of the easiest ways to reduce your tax bill is by claiming the basic personal amount (BPA) tax credit. However, the amount you can claim varies by tax year, income level and the province or territory you live in. Understanding how those pieces fit together can help you determine exactly how much this credit is worth on your own return.
Here’s everything you need to know about how the BPA works and how you can keep more money in your pocket.
In this article
What is the basic personal amount (BPA)?
The BPA is a non-refundable tax credit available to most Canadian residents. It’s automatically built into how your tax return is calculated, so you don’t need to apply for it separately. The BPA can reduce the federal or provincial tax you owe, but it won’t generate a refund if your total non-refundable credits exceed your tax payable. Think of it as a portion of your income that can be shielded from tax. The larger your available BPA, the less tax you’ll pay.
Your 2026 net income determines how much of the federal BPA you can claim:
- If your net income is $181,440 or less, you can claim the full $16,452.
- If your net income is above $181,440, the amount you can claim gradually decreases.
- If your net income is $258,482 or more, your BPA is limited to $14,829.
This gradual reduction exists because the federal BPA is income-tested above certain thresholds, which is part of the reason the credit changes each year. The Canada Revenue Agency (CRA) indexes the BPA to inflation using the Consumer Price Index (CPI), so the dollar figures move most years. That’s why it’s important to check how much you can claim each tax year.
Provinces and territories also have their own BPAs, and these are separate from the federal figure:
Province or territory |
2026 basic personal amount or maximum amount |
Alberta |
$22,769 |
British Columbia |
$13,216 |
Manitoba* |
$15,780 |
New Brunswick |
$13,664 |
Newfoundland and Labrador |
$13,094 |
Northwest Territories |
$18,198 |
Nova Scotia |
$11,932 |
Nunavut |
$19,659 |
Ontario |
$12,989 |
Prince Edward Island |
$15,000 |
Quebec |
$18,952 |
Saskatchewan |
$20,381 |
Yukon** |
$16,452 |
*The Manitoba BPA decreases for net incomes above $200,000.
**Yukon’s BPA follows the federal income-based formula.
Since provincial and territorial amounts can change independently of the federal figure, it’s worth checking both each year. Even if your income stays the same, changes to BPA amounts could affect how much tax you owe or how large a refund you receive.
How to calculate the BPA tax credit
While the calculation happens automatically when you file your tax return, understanding the math can help you estimate how much value the BPA provides. Here’s an example using a taxable income of $181,440 or less, which qualifies for the full federal BPA:
Step 1: Calculate the federal credit.
Federal non-refundable credits use the lowest federal tax rate, which is 14% for 2026. Multiplying the federal BPA of $16,452 by 14% gives you a federal credit of $2,303.28.
Step 2: Calculate the provincial credit.
Using Ontario as an example, the province’s 2026 BPA is $12,989, and its lowest provincial tax rate is 5.05%. Multiplying $12,989 by 5.05% gives you a provincial credit of $655.94.
Step 3: Add the federal and provincial credits together.
Adding the federal credit of $2,303.28 with the provincial credit of $655.94 equals a combined credit of $2,959.22.
When combined, the federal and provincial BPAs can help reduce the total amount of income tax you owe. Since the tax rates and BPA figures can vary by income level and province, the same three-step process applies no matter where you live, just with different numbers.
Can you transfer unused BPA to your spouse?
Not exactly. If you don’t claim the full BPA on your own tax return, you’re not able to transfer the unused portion to your spouse like some other tax benefits allow. However, if you supported your spouse or common-law partner during the year and their net income was below your BPA, you may be able to claim the spouse or common-law partner amount. This can help lower your combined tax bill as a couple.
For example, say your BPA is $16,452 and your spouse has $6,000 in net income. In that case, your claim would be based on the difference between those amounts, or $10,452, before the credit rate is applied. This doesn’t mean $10,452 is transferred from your spouse’s tax return. It’s simply the amount used to calculate the credit you can claim. Special rules may apply in some situations.
You claim the federal spouse or common-law partner amount on line 30300 using Schedule 5. A separate provincial or territorial amount may also be available depending on where you live.
The bottom line
The BPA is one of the most widely available tax credits for Canadian residents and can play an important role in reducing the amount of tax you pay each year. Understanding how much you're entitled to claim can help you estimate your tax bill, plan ahead and uncover practical tax-saving opportunities. Working with a financial advisor can help you maximize your tax savings even more.
FAQs
Can you claim the BPA if you’re not a Canadian resident?
If you’re not a Canadian resident, you may still be able to claim the full BPA if at least 90% of your net world income comes from Canadian sources. Deemed residents may also claim the BPA. This can include someone who stayed in Canada for 183 days or more during the year and was not otherwise considered a resident of Canada or another country under a tax treaty. Individuals who are part-year residents generally receive a prorated amount of the BPA based on the period they were a resident in Canada during the year.
Do self-employed Canadians qualify for the BPA?
Yes. Self-employed Canadians can claim the BPA. Your net self-employment income counts toward the net income used to determine how much of the BPA you can claim.
Does the BPA impact your eligibility for other tax credits?
No, not directly. Your BPA doesn’t reduce your net income, which is the figure often used to test eligibility for other credits or benefits. That said, it can still impact the spouse or common-law partner amount, since that claim is based partly on your BPA.
How do you claim the BPA on your tax return?
You can claim the federal BPA on line 30000 of your tax return. The provincial or territorial BPA is generally claimed on line 58040 of the applicable Form 428, while Quebec residents claim their provincial amount through their Revenu Québec return.
