Basic Personal Amount (BPA) 2026: Federal & Alberta
The federal BPA for 2026 is $16,452. Alberta's BPA is $22,769. This means the first $16,452 of your income is effectively tax-free at the federal level.
Federal BPA
$16,452
Phases out for high earners
Sources
- Canada Revenue Agency, T4127 Payroll Deductions Formulas, 122nd Edition, effective January 1, 2026 (Chapter 2, Federal Basic Personal Amount (BPAF) Formula; Chapter 4, Step 2 - Formula to calculate basic federal tax (T3): K1 = 0.14 x TC, with K2 and K4 also at 0.14; Chapter 3, Table 3.1 Glossary, K1: "the lowest federal tax rate is used to calculate this credit"). Checked September 28, 2026.
- Canada Revenue Agency, Indexation adjustment for personal income tax and benefit amounts (Table "Amounts relating to non-refundable tax credits", row Basic personal amount, 2026 column (16,452 maximum; 14,829 base amount)). Checked September 28, 2026.
Alberta BPA
$22,769
No phase-out
Alberta's BPA is the highest in Canada and does not reduce for high earners.
Sources
- Canada Revenue Agency, T4127 Payroll Deductions Formulas, 122nd Edition, effective January 1, 2026 (Chapter 8, Table 8.2 Other rates and amounts for 2026, row AB, column Basic amount (22,769); Chapter 4, Step 5, Alberta: "If Form TD1AB is not filed, TCP is $22,769"; Chapter 4, Step 5, Alberta: K1P = 0.08 x TCP, with K2P also at 0.08). Checked September 28, 2026.
- Government of Alberta, Personal income tax (Overview: "Alberta has the highest basic personal and spousal amounts among provinces."). Checked September 28, 2026.
- Alberta King's Printer, Financial Statutes Amendment Act, 2025, SA 2025 c 9 (Bill 39), assented to May 15, 2025 (Section 2(2), page 5, replacing Alberta Personal Income Tax Act s. 4: "The specified percentage for the 2025 taxation year and subsequent taxation years is 8%."). Checked September 28, 2026.
- Canada Revenue Agency, Form AB428, Alberta Tax and Credits, 2025 (Part B, line 53: "Alberta non-refundable tax credit rate 8%"). Checked September 28, 2026.
Combined Tax Savings
$4,124.80
Together, the federal and Alberta BPAs save you up to $4,124.80 in taxes per year. But this only offsets tax on your first dollars of income: on a $100,000 salary, you still hand over $25,542 in income tax, CPP and EI.
How the BPA Actually Works
The BPA is not a deduction: it's a non-refundable tax credit. The difference matters:
1. Your gross federal tax is calculated on your full income using the bracket rates
2. The BPA credit ($16,452 × 14% = $2,303.28) is subtracted from that tax
3. You pay the remaining amount
So the BPA doesn't take your first $16,452 out of your taxable income. It gives you a credit worth $2,303.28 against your federal tax bill, which cancels the tax on that first $16,452 at the lowest rate.
See Your Complete Tax Calculation
The BPA is just one piece of the puzzle. See your full tax breakdown including all brackets, CPP, EI, and where your money goes.
Calculate Your Tax Burden→Frequently Asked Questions
What is the Basic Personal Amount for 2026 in Canada?
The federal Basic Personal Amount (BPA) for 2026 is $16,452. Alberta's provincial BPA is $22,769. It's applied as a non-refundable tax credit at the lowest tax rate, so in effect it is the income you can earn before income tax starts. For an employee, the CPP, EI and Canada employment amount credits push the starting point higher: federal income tax starts at about $19,201 of employment income, and Alberta tax at about $24,412.
Does the BPA phase out for high earners?
Yes, the federal BPA phases out for net incomes between $181,440 and $258,482 in 2026. At $181,440, you get the full $16,452 BPA. It gradually reduces to the minimum of $14,829 at $258,482 and above. Alberta's BPA does not phase out.
How much tax does the BPA save me?
The federal BPA saves you up to $2,303.28 (BPA × 14% lowest bracket rate). Alberta's BPA saves up to $1,821.52 (BPA × 8% lowest bracket rate). Combined, you save up to $4,124.80, but this only offsets tax on your first dollars of income.
Amounts for tax year 2026, verified against CRA and Government of Alberta sources on September 28, 2026. View methodology →