ARCHIVED CD 2008-027

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December 10, 2008

SUBJECT: Federal, Provincial (excluding Quebec) and Territorial Personal Tax Credits -- Effective January 1, 2009

1. PURPOSE

1.1. The purpose of this directive is to provide information concerning changes to the federal, provincial (excluding Quebec) and territorial personal tax credits for the 2009 taxation year.

1.2. A notice of information to employees concerning the above has been included with this Compensation Directive and will also be posted in the "Who are you? - Public Service Employee" page of the Compensation Sector Web site.

2. BACKGROUND

2.1. Many of the personal tax credit amounts on the federal, provincial and territorial "Personal Tax Credits Return" (TD1) forms have been indexed for 2009. Indexing means that certain personal tax credit amounts will increase based on changes to the Consumer Price Index (CPI). For example, the federal indexing factor for 2009 is 2.5%. To calculate the indexed federal personal tax credit amounts for 2009, multiply the appropriate 2008 personal tax credit amounts by 1.025.

3. POLICY

3.1. FEDERAL PERSONAL TAX CREDITS

The Canada Revenue Agency (CRA) has announced that the following personal tax credit amounts have been indexed by 2.5% for the 2009 taxation year. According to the 2008 Budget, the basic personal amount, the spouse or common-law partner amount and the amount for an eligible dependant will be set at $10,100, effective January 1, 2009. The 2009 TD1 form has been revised to include these changes to the personal tax credit amounts. This form will be available at district taxation offices and at the CRA Web site at: TD-e

Federal Personal Tax Credit Amounts (indexing factor is 2.5%)
  Amount Effective
January 1, 2008
Amount Effective
January 1, 2009
Basic personal amount $9,600 $10,100
Child amount $2,038 $2,089
Age amount maximum of $5,276 maximum of $5,408
Disability amount maximum of $7,021 maximum of $7,196
Spouse or common-law partner amount maximum of $9,600 maximum of $10,100
Amount for an eligible dependant maximum of $9,600 maximum of $10,100
Caregiver amount maximum of $4,095 maximum of $4,198
Amount for infirm dependants age 18 or older maximum of $4,095 maximum of $4,198

Non-indexed tax credits are the total of lines 4, 5, 11 and 12 of the TD1 form. Indexed tax credits are the total of lines 1, 2, 3, 6, 7, 8, 9 and 10 of the TD1 form.

3.2. PROVINCIAL AND TERRITORIAL PERSONAL TAX CREDITS

Effective January 1, 2009, the following non-refundable personal tax credit amounts can be claimed by employees based on their province/territory of employment. Some personal tax credit amounts have been indexed for the 2009 taxation year. Each provincial and territorial TD1 form will be revised to include these changes to the personal tax credit amounts. These forms will be available at district taxation offices and at the CRA Web site at: TD-e

There are no changes to the personal tax credit amounts for the province of Prince Edward Island.

Newfoundland and Labrador

Provincial Personal Tax Credit Amounts (indexing factor is 2.8)
  Amount Effective
January 1, 2008
Amount Effective
January 1, 2009
Basic personal amount $7,566 $7,778
Age amount maximum of $3,556 maximum of $3,655
Disability amount maximum of $5,106 maximum of $5,249
Spouse or common-law partner amount maximum of $6,183 maximum of $6,356
Amount for an eligible dependant maximum of $6,183 maximum of $6,356
Caregiver amount maximum of $2,402 maximum of $2,470
Amount for infirm dependants age 18 or older maximum of $2,402 maximum of $2,470

Non-indexed tax credits are the total of lines 3, 4, 10 and 11 of the TD1NL form. Indexed tax credits are the total of lines 1, 2, 5, 6, 7, 8 and 9 of the TD1NL form.


Nova Scotia

The government of Nova Scotia announced that the basic personal amount has been increased by $250 and the remaining tax credits have been increased proportionately by 3.25%.

Provincial Personal Tax Credit Amounts
  Amount Effective
January 1, 2008
Amount Effective
January 1, 2009
Basic personal amount $7,731 $7,981
Age amount maximum of $3,775 maximum of $3,897
Pension income amount maximum of $1,069 maximum of $1,104
Disability amount maximum of $4,596 maximum of $4,738
Spouse or common-law partner amount maximum of $6,565 maximum of $6,778
Amount for an eligible dependant maximum of $6,565 maximum of $6,778
Caregiver amount maximum of $4,465 maximum of $4,610
Amount for infirm dependants age 18 or older maximum of $2,551 maximum of $2,633

Non-indexed tax credits are the total of lines 4, 10 and 11 of the TD1NS form. Indexed tax credits are the total of lines 1, 2, 3, 5, 6, 7, 8 and 9 of the TD1NS form.

New Brunswick

Provincial Personal Tax Credit Amounts (indexing factor is 2.5%)
  Amount Effective
January 1, 2008
Amount Effective
January 1, 2009
Basic personal amount $8,395 $8,605
Age amount maximum of $4,099 maximum of $4,202
Disability amount maximum of $6,797 maximum of $6,966
Spouse or common-law partner amount maximum of $7,129 maximum of $7,307
Amount for an eligible dependant maximum of $7,129 maximum of $7,307
Caregiver amount maximum of $3,965 maximum of $4,064
Amount for infirm dependants age 18 or older maximum of $3,965 maximum of $4,064

Non-indexed tax credits are the total of lines 3, 4, 10 and 11 of the TD1NB form. Indexed tax credits are the total of lines 1, 2, 5, 6, 7, 8 and 9 of the TD1NB form.

Alberta

Provincial Personal Tax Credit Amounts (indexing factor is 3.8%)
  Amount Effective
July 1, 2008
Amount Effective
January 1, 2009
Basic personal amount $16,161 $16,775
Age amount maximum of $4,503 maximum of $4,675
Pension income amount $1,244 $1,292
Tuition and education amounts (full-time) $628 $652
Tuition and education amounts (part-time) $188 $196
Disability amount maximum of $12,466 maximum of $12,940
Spouse or common-law partner amount maximum of $16,161 maximum of $16,755
Amount for an eligible dependant maximum of $16,161 maximum of $16,755
Caregiver amount maximum of $9,355 maximum of $9,711
Amount for infirm dependants age 18 or older maximum of $9,355 maximum of $9,710

Non-indexed tax credits are the total of lines 10 and 11 of the TD1AB form. Indexed tax credits are the total of lines 1, 2, 3, 4, 5, 6, 7, 8 and 9 of the TD1AB form.


Ontario

Provincial Personal Tax Credit Amounts (indexing factor is 2.3%)
  Amount Effective
January 1, 2008
Amount Effective
January 1, 2009
Basic personal amount $8,681 $8,881
Age amount maximum of $4,239 maximum of $4,336
Pension income amount $1,201 $1,228
Tuition and education amounts (full-time) $468 $478
Tuition and education amounts (part-time) $140 $143
Disability amount maximum of $7,014 maximum of $7,175
Spouse or common-law partner amount maximum of $7,371 maximum of $7,541
Amount for an eligible dependant maximum of $7,371 maximum of $7,541
Caregiver amount maximum of $4,092 maximum of $4,186
Amount for infirm dependants age 18 or older maximum of $4,091 maximum of $4,186

Non-indexed tax credits are the total of lines 10 and 11 of the TD1ON form. Indexed tax credits are the total of lines 1, 2, 3, 4, 5, 6, 7, 8 and 9 of the TD1ON form.

Saskatchewan

The Saskatchewan government announced on October 21, 2008, that the basic personal amount and the spouse or common-law partner amount were retroactively set to $12,945 (formerly $8,945) effective January 1, 2008, and the child amount was retroactively set to $4,795 (formerly $2,795) effective January 1, 2008.

Provincial Personal Tax Credit Amounts (indexing factor is 2.5%)
  Amount Effective
July 1, 2008
Amount Effective
January 1, 2009
Basic personal amount $12,945 $13,269
Age amount maximum of $4,235 maximum of $4,340
Senior supplementary amount $1,118 $1,146
Disability amount maximum of $8,190 maximum of $8,395
Spouse or common-law partner amount maximum of $12,945 maximum of $13,269
Amount for an eligible dependant maximum of $8,945 maximum of $13,269
Child amount $4,795 $4,915
Caregiver amount maximum of $8,190 maximum of $8,395
Amount for infirm dependants age 18 or older maximum of $8,190 maximum of $8,395

Non-indexed tax credits are the total of lines 4, 5, 12 and 13 of the TD1SK form. Indexed tax credits are the total of lines 1, 2, 3, 6, 7, 8, 9, 10 and 11 of the TD1SK form.

Manitoba

Provincial Personal Tax Credit Amount
  Amount Effective
January 1, 2008
Amount Effective
January 1, 2009
Basic personal amount $8,034 $8,134
Spouse or common-law partner amount maximum of $8,034 maximum of $8,134
Amount for an eligible dependant maximum of $8,034 maximum of $8,134

Non-indexed tax credits are the total of lines 3, 4, 10, 11 and 12 of the TD1MB form. Indexed tax credits are the total of lines 1, 2, 5, 6, 7, 8 and 9 of the TD1MB form.

British Columbia

Provincial Personal Tax Credit Amounts (indexing factor is 2.0%)
  Amount Effective
January 1, 2008
Amount Effective
January 1, 2009
Basic personal amount $9,189 $9,373
Age amount maximum of $4,121 maximum of $4,203
Disability amount maximum of $6,892 maximum of $7,030
Spouse or common-law partner amount maximum of $7,868 maximum of $8,026
Amount for an eligible dependant maximum of $7,868 maximum of $8,026
Caregiver amount maximum of $4,021 maximum of $4,101
Amount for infirm dependants age 18 or older maximum of $4,021 maximum of $4,101

Non-indexed tax credits are the total of lines 3, 4, 10 and 11 of the TD1BC form. Indexed tax credits are the total of lines 1, 2, 5, 6, 7, 8 and 9 of the TD1BC form.

Yukon

The Yukon tax credit amounts will be harmonized with all federal personal amounts. Therefore, the basic personal amount, the spouse or common-law partner amount and the amount for an eligible dependant will be set at $10,100.

Territorial Personal Tax Credit amounts (indexing factor is 2.5%)
  Amount Effective
January 1, 2008
Amount Effective
January 1, 2009
Basic personal amount $9,600 $10,100
Child amount $2,038 $2,089
Age amount maximum of $5,276 maximum of $5,408
Disability amount maximum of $7,021 maximum of $7,196
Spouse or common-law partner amount maximum of $9,600 maximum of $10,100
Amount for an eligible dependant maximum of $9,600 maximum of $10,100
Caregiver amount maximum of $4,095 maximum of $4,198
Amount for infirm dependants age 18 or older maximum of $4,095 maximum of $4,198

Non-indexed tax credits are the total of lines 4, 5, 11 and 12 of the TD1YT form. Indexed tax credits are the total of lines 1, 2, 3, 6, 7, 8, 9 and 10 of the TD1YT form.


Northwest Territories

Territorial Personal Tax Credit Amounts (indexing factor is 2.5%)
  Amount Effective
January 1, 2008
Amount Effective
January 1, 2009
Basic personal amount $12,355 $12,644
Age amount maximum of $6,044 maximum of $6,195
Disability amount maximum of $10,020 maximum of $10,270
Spouse or common-law partner amount maximum of $12,355 maximum of $12,644
Amount for an eligible dependant maximum of $12,355 maximum of $12,644
Caregiver amount maximum of $4,095 maximum of $4,198
Amount for infirm dependants age 18 or older maximum of $4,095 maximum of $4,198

Non-indexed tax credits are the total of lines 3, 4, 10 and 11 of the TD1NT. Indexed tax credits are the total of lines 1, 2, 5, 6, 7, 8 and 9 of the TD1NT.

Nunavut

Territorial Personal Tax Credit Amounts (indexing factor is 2.5%)
  Amount Effective
January 1, 2008
Amount Effective
January 1, 2009
Basic personal amount $11,360 $11,644
Age amount maximum of $8,520 maximum of $8,733
Disability amount maximum of $11,360 maximum of $11,644
Spouse or common-law partner amount maximum of $11,360 maximum of $11,644
Amount for an eligible dependant maximum of $11,360 maximum of $11,644
Caregiver amount maximum of $4,095 maximum of $4,198
Amount for infirm dependants age 18 or older maximum of $4,095 maximum of $4,198

Non-indexed tax credits are the total of lines 3, 4, 10 and 11 of the TD1NU form. Indexed tax credits are the total of lines 1, 2, 5, 6, 7, 8 and 9 of the TD1NU form.

4. PROCEDURES/INSTRUCTIONS

4.1. Compensation systems are programmed to automatically reflect the basic personal amount, the spouse or common-law partner amount, and the amount for an eligible dependant.

Employees who wish to change their personal tax credit amounts must complete both the federal and the applicable provincial or territorial TD1 forms. An employee who changes province or territory of employment or moves to another province or territory should complete the appropriate provincial or territorial TD1 form. These forms are available from the CRA tax services offices and at the following Internet address: TD-e

5. INQUIRIES

5.1. Any inquiries on the information contained in this document should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.



Original Signed by
B. Fortin

Brigitte Fortin
Director General
Compensation Sector
Accounting, Banking and Compensation


Reference(s): CJA 9007-7, 9007-8