Personal Tax

Ontario Basic Personal Amount 2026: BPA & Age Amount

By July 17, 2026 No Comments
Ontario basic personal amountOntario basic personal amount
This article is for informational purposes only and does not constitute tax or financial advice. Consult a qualified accounting professional before making any tax or financial decisions.

Quick Answer

The Ontario basic personal amount for 2026 is $12,989, the amount every Ontario resident can earn before paying provincial income tax. The Ontario age amount for 2026 is $6,342 for residents who are 65 or older on December 31, 2026, and whose net income is $47,210 or less. The age amount is reduced when net income exceeds $47,210 and disappears entirely at $89,490. Both credits are non-refundable and are multiplied by Ontario’s lowest tax rate of 5.05% to calculate the actual dollar reduction in provincial tax payable. These figures come from Form TD1ON (2026 Ontario Personal Tax Credits Return) issued by the Canada Revenue Agency.

Why Ontario’s 2026 Personal Tax Credits Matter Right Now

Every January, Ontario’s personal tax credit amounts reset. Payroll systems update, new TD1ON forms are issued by the CRA, and the numbers on your paycheque quietly shift. For 2026, the Ontario basic personal amount rose to $12,989 and the senior age amount to $6,342, both indexed by the Ontario 2026 indexation factor of 1.9%.

If you have started a new job, turned 65, or hired staff for a small business, these amounts drive every pay period. Get them right on Form TD1ON and your withholding stays close to your final tax bill. Get them wrong and you may owe money at filing or leave hundreds of dollars sitting with the CRA all year. This guide covers what changed, what each credit is worth in real dollars, and how to update your TD1ON without guessing. For the wider 2026 picture, see our overview of the 2026 Ontario tax brackets.

$12,9892026 basic personal amount
$6,3422026 age amount (max)
5.05%Ontario credit rate
1.9%2026 indexation factor

What the Basic Personal Amount and Age Amount Actually Do

The Ontario basic personal amount is a non-refundable tax credit that lets every Ontario resident earn a base amount of income before paying provincial income tax. The age amount is an additional non-refundable credit for residents who turn 65 or older by December 31 of the tax year, subject to a net income cap.

Non-refundable is the key word. These credits reduce Ontario tax payable to zero but cannot create a refund on their own. If you owe no Ontario tax, an unused credit does not become a cheque in the mail.

Both amounts are indexed each January using the Ontario indexation factor, which is 1.9% for 2026. The top two Ontario bracket thresholds of $150,000 and $220,000 are not indexed. All figures below come from Form TD1ON and the CRA’s January 2026 Ontario Payroll Deductions Tables (T4032ON).

Quick Start: Pick Your Path

Not every reader needs every section. Pick the path that matches you:

NEW HIRE IN 2026
Skip to the TD1ON step-by-step section below. Confirm your basic personal amount is $12,989 on line 1 before your first pay run.
SENIOR TURNING 65
Read the age amount phase-out section. If your net income sits between $47,210 and $89,490, use Form TD1ON-WS for a partial claim.
SOLE EARNER HOUSEHOLD
Check the spousal row in the credit table and the common mistakes list. The $11,029 amount phases out fully at spouse income of $12,132.
DTC HOLDER OR PAYROLL OWNER
The Ontario disability amount is $10,494. Small business owners: confirm every employee’s TD1ON matches this year’s amounts before the first pay run.

If you file every spring but have not started thinking about it yet, our guide on how to get ready for tax season 2026 is a useful next step.

Ontario Personal Tax Credit Amounts for 2026 at a Glance

Ontario’s 2026 non-refundable personal tax credits are: basic personal amount $12,989, spousal or equivalent-to-spouse amount up to $11,029, disability amount $10,494, age amount up to $6,342, and pension income amount $1,796. Every amount is multiplied by 5.05% to produce the Ontario tax reduction.
Credit2026 Ontario amountKey rule
Basic personal amount$12,989Available to every Ontario resident
Spousal / equivalent-to-spouse amountUp to $11,029Full amount if partner’s or dependant’s net income is $1,103 or less; partial claim between $1,103 and $12,132
Disability amount$10,494Requires an approved Form T2201 on file with the CRA
Age amountUp to $6,342Age 65+ by December 31 and net income of $47,210 or less; phased out at $89,490
Pension income amount$1,796Regular pension income only; CPP, OAS, and GIS do not qualify

Read the table with one thing in mind: these are the amounts you claim, not the tax reduction you receive. The next section converts them into dollars.

ClearWealth Accounting Advisors
Ontario 2026 non-refundable personal tax credit amounts
The five headline amounts from Form TD1ON (2026). Each amount is multiplied by 5.05% to produce the actual Ontario tax reduction.
Basic personal
$12,989
Age amount max
$6,342
Credit rate
5.05%
Source: CRA Form TD1ON, 2026 Ontario Personal Tax Credits Return (canada.ca). ClearWealth Accounting Advisors · clearwealth.tax · For informational purposes only.

Turning the 5.05% Credit Rate Into Real Dollar Savings

Ontario non-refundable tax credits are multiplied by 5.05%, the province’s lowest income tax rate, to calculate the actual dollar reduction in Ontario tax payable. The $12,989 basic personal amount produces approximately $656 in Ontario tax savings, and the full $6,342 age amount adds roughly $320.

A common misread is treating the credit amount as the dollar tax cut. It is not. The amount is what you multiply by 5.05% to get the tax reduction, and only up to the Ontario tax you actually owe.

Worked example: a 65-year-old Ontario resident with a low-income spouse and net income under $47,210 could claim the basic personal amount ($12,989), age amount ($6,342), and spousal amount ($11,029). The three add to $30,360. Multiplied by 5.05%, that is roughly $1,533 in Ontario tax reduction, provided at least that much Ontario tax is owed to begin with.

When the Ontario Age Amount Starts to Shrink

The Ontario age amount is the full $6,342 when net income is $47,210 or less. Above that threshold, it is reduced by 15% of income over $47,210. The credit reaches zero at $89,490 of net income.

The reduction formula is straightforward. Take your estimated 2026 net income (line 23600 on the T1). Subtract $47,210. Multiply the difference by 15%. Subtract that from $6,342.

Worked example: net income of $60,000. Excess is $12,790, and 15% of that is roughly $1,919. The claimable age amount is $6,342 minus $1,919, or approximately $4,423. Anyone in the phase-out band should complete Form TD1ON-WS each January rather than guess.

ClearWealth Accounting Advisors
Ontario age amount phase-out by net income (2026)
The full $6,342 is available at $47,210 net income or less. Above that, the amount is reduced by 15% of income over the threshold and reaches zero at $89,490.
Full claim ceiling
$47,210
Full phase-out
$89,490
Reduction rate
15%
Source: CRA Form TD1ON-WS, Worksheet for the 2026 Ontario Personal Tax Credits Return (canada.ca). ClearWealth Accounting Advisors · clearwealth.tax · For informational purposes only.

Filling Out Form TD1ON for 2026 Step by Step

Form TD1ON is the Ontario Personal Tax Credits Return. It tells your employer or pension payer how much provincial tax to withhold from each pay. It goes to your employer, not the CRA, and you generally submit a new form within seven days of any life change that reduces your credits.

  1. 1
    Confirm Ontario residencyProvince of residence on December 31 is the one that applies for the full year.
  2. 2
    Enter the basic personal amount on line 1Enter $12,989. Every Ontario resident claims this by default.
  3. 3
    Enter the age amount on line 2If you will be 65 or older on December 31, 2026, and expect net income of $47,210 or less, enter $6,342. Between $47,210 and $89,490, use Form TD1ON-WS for a partial amount.
  4. 4
    Enter the pension income amount on line 3Up to $1,796 for eligible pension income other than CPP, OAS, or GIS.
  5. 5
    Enter the disability amount on line 5$10,494 if the CRA has approved your Form T2201.
  6. 6
    Enter the spousal amount on line 6Up to $11,029 if your partner’s or dependant’s net income is $1,103 or less.
  7. 7
    Total and submitAdd lines 1 through 9 into line 10, sign and date the form, and give it to your employer.

For the mechanics of running payroll around these numbers, our payroll setup guide for 2026 covers employer obligations, remittance timing, and year-end T4 preparation.

Federal vs Ontario: Two Basic Personal Amounts, Not One

Every Ontario employee fills out two TD1 forms: the federal TD1 and the Ontario TD1ON. Each has its own basic personal amount. The 2026 federal basic personal amount is up to $16,452 (a $14,829 base plus a $1,623 supplement), and the Ontario amount is $12,989.

The federal supplement of $1,623 is fully available when net income is $181,440 or less. It is reduced above that and disappears entirely at $258,482, leaving the $14,829 base for higher-income filers.

The two amounts serve the same purpose in different tax systems. The federal amount is multiplied by the lowest federal rate of 15% to reduce federal tax; the Ontario amount is multiplied by 5.05% to reduce Ontario tax. Both apply automatically once the TD1 and TD1ON are on file. For a deeper look at how federal tax is calculated, see our explainer on Canadian federal income tax explained.

ClearWealth Accounting Advisors
Federal vs Ontario basic personal amount: claimed vs actual tax reduction (2026)
The claim amount is not the dollar reduction. Federal amounts multiply by 15%, Ontario amounts by 5.05%. The two credits stack for combined savings on the same paycheque.
Federal tax cut
$2,468
Ontario tax cut
$656
Combined saving
$3,124
Source: CRA Form TD1 and Form TD1ON, 2026 Personal Tax Credits Returns (canada.ca). Federal top-up assumes net income at or below $181,440. ClearWealth Accounting Advisors · clearwealth.tax · For informational purposes only.

Common Mistakes That Cost Ontario Filers Money

Small errors on Form TD1ON can trigger under-withholding, over-withholding, or a surprise bill at filing. The most common slip-ups on Ontario returns include:

  • →Forgetting to file a second TD1ON at a side job. The second employer should be told not to apply personal credits again, or under-withholding stacks up across both paycheques.
  • →Claiming the age amount without checking the $47,210 net income cap. The credit shrinks quickly in the phase-out band and disappears at $89,490.
  • →Confusing the federal age amount of $9,208 with the Ontario age amount of $6,342. They are separate credits and the Ontario cap is lower.
  • →Claiming the spousal amount when a partner’s net income exceeds $12,132. The credit is fully phased out by that point.
  • →Skipping the seven-day resubmission window when a life change reduces your credits, such as a spouse’s income rising mid-year.
  • →Missing the pension income amount. Only regular employer pension, RRIF, or annuity income qualifies; CPP, OAS, and GIS do not.
  • →Treating non-refundable credits as if they generate refunds. Our explainer on 2026 CPP contribution rates helps clarify which paycheque numbers change.

Frequently Asked Questions

What is the Ontario basic personal amount for 2026?

The Ontario basic personal amount for 2026 is $12,989. Every Ontario resident claims this on line 1 of Form TD1ON. Multiplied by 5.05%, it produces roughly $656 in provincial tax reduction on a full-year claim.

How much is the Ontario age amount for someone turning 65 in 2026?

The full Ontario age amount for 2026 is $6,342. It is available if you turn 65 or older by December 31, 2026, and your net income for the year is $47,210 or less. It reduces above that and reaches zero at $89,490.

At what income does the Ontario age amount get reduced or disappear?

The Ontario age amount begins to reduce once net income exceeds $47,210. It is cut by 15% of income above the threshold and reaches zero at $89,490. Form TD1ON-WS calculates a partial claim in the phase-out band.

What is the difference between the federal and Ontario basic personal amounts for 2026?

The 2026 federal basic personal amount is up to $16,452 (a $14,829 base plus a $1,623 supplement phased out above $181,440). The Ontario amount is $12,989. They apply separately, at 15% and 5.05% respectively.

Do I have to fill out a new TD1ON every year?

Not usually. If your circumstances have not changed, you generally do not need a new TD1ON each year. Your employer applies indexed amounts automatically. File a new form when you start a job or a life event affects your credits.

Can I claim the Ontario spousal amount if my partner works part-time?

Possibly. The full $11,029 spousal or equivalent-to-spouse amount is available when your partner’s net income is $1,103 or less. A partial claim applies between $1,103 and $12,132. Above $12,132, the credit is not available.

Are the Ontario basic personal amount and age amount refundable?

No. Both are non-refundable credits. They can reduce Ontario tax payable to zero but cannot generate a refund on their own. Unused amounts are generally lost, though certain credits can be transferred to a spouse in specific situations.

Do CPP, OAS, or GIS payments count for the Ontario pension income amount?

No. Canada Pension Plan, Old Age Security, and Guaranteed Income Supplement payments do not qualify. Eligible sources typically include registered pension plan payments, RRIF withdrawals, and certain annuity payments.

Need a second set of eyes on your TD1ON?

Phase-out math, spousal transfers, and unused credit rules can add up to hundreds of dollars either way. A short review with a ClearWealth advisor often pays for itself, and we also cover the wider services you may need.

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This article is for informational purposes only and does not constitute tax or financial advice. Consult a qualified accounting professional before making any tax or financial decisions.

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