December 20, 2007
CRA Fact sheet: 2008 Indexation Adjustment for Personal Income Taxes
According to the Canada Revenu Agency, each year certain personal income tax amounts are indexed to inflation using the Consumer Price Index (CPI) data reported by Statistics Canada.
Increases to tax bracket thresholds, personal amounts and other amounts relating to non-refundable credits, as well as the refundable medical expense supplement and Old Age Security repayment threshold, will take effect as of January 1, 2008. Increases to the Canada Child Tax Benefit (including the National Child Benefit supplement and the Child Disability Benefit) and the Goods and Services Tax Credit will take effect as of July 1, 2008, to coincide with the beginning of the "program year" for payment of these benefits.
A chart comparing the indexed amounts for the 2007 and 2008 tax years is available on the CRA web site at the address below. The chart reflects an indexation increase of 1.9% for 2008.
For more information, see:
http://www.cra-arc.gc.ca/newsroom/factsheets/2007/dec/fs071219-e.html
Posted by Taxes.ca Editorial Team [permalink]
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