What it does on your return
The basic personal amount goes on line 30000 of the federal return and on line 58040 of the provincial form, which is Form ON428 for Ontario. Generally you can claim it if you are a resident of Canada or deemed resident for the year. Special rules apply if you went bankrupt or moved to or from Canada during the year.
Because it is a non-refundable credit, it reduces your tax but cannot create a refund. The credit is the amount multiplied by the lowest rate, which is 14% federally for 2026, so the full $16,452 is worth roughly $2,303 against federal tax.
The 2026 federal figures
The CRA indexes the amount each year. For 2026 the maximum is $16,452 if your net income is at or below the point where the 29% bracket begins, which is $181,440. If your net income is at or above where the 33% bracket begins, which is $258,482, the amount falls to $14,829. Between those points it is reduced gradually, using a CRA worksheet.
Net income here means the figure on line 23600 of the return, not your gross pay. The 2025 Ontario amount was $12,747; confirm the Ontario figure for the year you are filing, because Ontario sets its own.
An illustrative example
Take a person with a net income of $50,000 in 2026. They claim the maximum federal amount of $16,452, which produces a credit of about $2,303. Their federal tax on $50,000 is more than that, so the credit is fully used. Another person with net income of $10,000 would owe little federal tax, and most of the credit would go unused. The figures are illustrative and ignore other deductions and credits.
This is why people with low incomes often owe little or no federal tax. Other credits and deductions on a real return will change the result.
What to discuss with your accountant
Tell your accountant about any year you moved into or out of Canada, became a resident partway through the year or went bankrupt, since these change how the amount is claimed. Part-year residents should not assume the full amount applies.
Ask how it interacts with other credits you claim, and whether a new job or a second source of income means your withholding will fall short. A refundable credit works differently, so see how it compares.
Sources & editorial notes
Sources checked October 24, 2026. The examples are illustrative and provide general information. Discuss how the guidance applies to your circumstances with your accountant.
- Line 30000 – Basic personal amountCanada Revenue Agency
- CRA: Indexation adjustment for personal income tax and benefit amountsCanada Revenue Agency
- 2026 personal income tax rates and bracketsCanada Revenue Agency
Rules and guidance can change. Use the current official source and confirm the treatment for your facts. To flag an error, contact Sora.