The basic personal amount (BPA) is a crucial, universal tax credit that all Canadians should know about. It is intended to provide relief from the burden of income tax to those who are most in need, i.e. lower to middle-income earners.
While the BPA is automatically applied when you file your income taxes, it’s still worthwhile to understand how it works and how you can maximize its benefits as a Canadian taxpayer.
What Is The Basic Personal Amount (BPA)?
The basic personal amount (BPA) is an important element of Canada’s tax system, providing a non-refundable tax credit that helps reduce the federal income tax that individuals owe.
The BPA represents the portion of annual income that all Canadians can earn without being subject to federal income tax, ensuring that a basic level of income remains untaxed.
The federal BPA for the 2025 tax year ranges from $14,538 – $16,129, depending on your total income.
And the good news is, you don’t have to do anything special to avail of the BPA, as it is automatically applied when you file your taxes. Nevertheless, it’s important to understand how it interacts with other tax credits and benefits.
Learn more: How To Calculate Your Take-Home Pay In Canada
Does The BPA Vary By Province?
In addition to the federal basic personal amount (BPA), Canadian taxpayers are also entitled to claim a corresponding provincial or territorial BPA.
Each province and territory in Canada sets its own BPA, which is used to calculate the total amount of provincial income tax you owe.
These amounts vary significantly depending on where you live. For example, the BPA in Alberta for the 2025 tax year is set at $22,323, which is the highest in Canada, while Nova Scotia is at $8,744, which is the lowest in Canada.
Here’s a look at the 2025 BPA amounts across Canada:
| Region | Basic Personal Amount for 2025 |
| Federal | $14,538 – $16,129 |
| Quebec | $18,571 |
| Ontario | $12,747 |
| Alberta | $22,323 |
| British Columbia | $12,932 |
| Manitoba | $15,969 |
| Saskatchewan | $19,491 |
| Nova Scotia | $8,744 |
| New Brunswick | $13,396 |
| Prince Edward Island | $14,250 |
| Newfoundland and Labrador | $11,067 |
| Northwest Territories | $17,842 |
| Yukon | $14,538 – $16,129 |
| Nunavut | $19,274 |
How Does The BPA Work?
The BPA is a non-refundable tax credit that helps reduce the amount of income tax Canadian taxpayers will owe.
For the 2025 tax year, the BPA ranges between $14,538 and $16,129, depending on an individual’s income. Those with net incomes of $165,430 or less are eligible to claim the maximum BPA of $16,129.
For incomes between $165,430 and $253,414, the BPA is gradually reduced. For individuals with net incomes exceeding $253,414, the BPA will be reduced to zero.
An Example Of How The BPA Works
To understand how the BPA works in practice, let’s consider the example of two taxpayers: one with a lower income and another with a higher income.
How The BPA Works If You Have A Low Income: An Example
Alex, a low-income earner who makes $14,000 annually and lives in Ontario, benefits significantly from the BPA. At the federal level, Alex’s entire income falls below even the $14,538 lower BPA threshold, meaning he owes no federal tax.
At the provincial level, Ontario’s BPA of $12,747 exempts most of Alex’s income from taxation. As a result, he pays income tax on the remaining $1,253, ensuring that most of his earnings can cover essential living costs for the year.
How The BPA Works If You Have A High Income: An Example
Jamie, on the other hand, is a high-income earner in Alberta with an annual income of $200,000. Jamie can still claim a portion of the federal BPA of $14,538, but with a significantly limited tax credit. At the provincial level, Alberta’s higher BPA of $22,323 provides an additional credit, but because the BPA phases out for those earning above $165,430, Jamie’s tax credit is again reduced significantly.
If his income were to exceed $253,414, the BPA would be eliminated entirely at both federal and provincial levels.
Who Can Claim The BPA?
The basic personal amount (BPA) is available to all Canadian residents for tax purposes, regardless of employment status or income level. It ensures that a portion of most taxpayer’s income is exempt from federal income tax.
However, the amount you can claim may vary based on your annual income.
All Taxpayers
Every Canadian resident is eligible to claim the BPA when filing their taxes. It is automatically applied when calculating your federal income tax.
Low-Income Earners
Individuals with an annual income equal to or less than the BPA threshold (e.g., $14,538 in 2025) will not pay any federal income tax.
Learn more: Tax Tips For Low-Income Earners
Middle and High-Income Earners
If your income exceeds the BPA threshold, you can still claim the BPA, but its value will be reduced for high-income earners. Beyond these categories, there are also additional instances where Canadian taxpayers can benefit from the BPA.
- Non-Residents: If you are a non-resident but earned income in Canada, you may also be entitled to claim the BPA based on your situation.
- Dependents: In some cases, you may be able to transfer unused portions of the BPA to a spouse, common-law partner, or dependent if you do not use the full credit yourself.
How To Claim The BPA On Your Tax Return
Claiming the basic personal amount on your tax return is fairly straightforward, once you’ve correctly calculated your income for the relevant tax year. The BPA is applied automatically when you file your income tax return with most online tax filing software, so you don’t need to take any special steps to claim it. However, understanding how it appears on your return can help ensure accuracy and give you a better idea of how it will impact your tax savings.
The BPA is reported on Line 30000 of your federal income tax and benefit return. The CRA will calculate the BPA amount you’re eligible for based on your income.
Similarly, you can claim the provincial BPA as part of your provincial tax return. For example, in Ontario, the BPA is included on the ON428 form, while in Quebec, it is applied through a separate provincial filing system.
Special Considerations Regarding the Basic Personal Amount
The basic personal amount is a universal tax credit, but its application can vary depending on a taxpayer’s specific circumstances:
Seniors
In addition to federal and provincial BPA’s, seniors may also qualify for the Age Amount Tax Credit to further reduce their taxable income. The Age Amount is available to individuals who are 65 or older at the end of the tax year and have a net income below a certain threshold.
For 2025, this threshold is $45,522, with the maximum credit available for those earning less than this amount. As net income rises, the Age Amount gradually phases out and is eliminated entirely for incomes above $105,709.
Married/Common-law Couples
Married and common-law couples can benefit from the BPA, especially if one partner has a lower income. If one spouse or partner’s income is below the BPA threshold (minimum $14,538 in 2025), the higher-earning partner can claim the unused portion of their partner’s BPA as part of the Spousal Amount Tax Credit.
This Spousal Credit may also be combined with other tax credits, such as the Canada Caregiver Amount, to maximize your overall tax savings.
Bottom Line
The basic personal amount is an integral piece of Canada’s federal and provincial tax system, designed to ease the tax burden for all Canadians, particularly lower-income earners.
Understanding the nuances of both federal and provincial BPA’s is useful, especially if you’re interested in optimizing your tax return in order to maximize your overall tax savings.
