What is the basic personal amount I can claim on my Ontario and federal tax returns?

The basic personal amount (BPA) is a non-refundable tax credit that reduces the income tax you owe. There are two: one at the federal level under the Income Tax Act, and one at the provincial level under Ontario's Taxation Act, 2007. They are separate amounts indexed annually for inflation.

The federal BPA has been enhanced in recent years under a legislated phase-in for lower-income earners — at higher income levels the BPA begins to phase down toward a lower floor amount. Ontario's provincial BPA is a separate, generally smaller figure that you claim on your provincial tax calculation (Schedule ON428). Both amounts are multiplied by their respective lowest tax rate (not a dollar-for-dollar reduction of tax) to arrive at the credit.

Because both amounts are adjusted annually by CRA and the Ontario government, always use the current year's Schedule 1 (federal) and Form ON428 (Ontario) rather than prior-year amounts. Tax software automatically populates these fields from current tables. If you have a spouse or common-law partner who cannot fully use their BPA, you may be able to transfer the unused spousal amount to your return.