Skip to main content

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

Credit Rate14% (lowest bracket)
Tax Savings (credit value)$2,303.28

Phases out for high earners

Phase-out starts$181,440
Phase-out ends$258,482
Minimum BPA (high earners)$14,829
Minimum credit value$2,076.06

Alberta BPA

$22,769

Credit Rate8% (lowest bracket)
Tax Savings (credit value)$1,821.52

No phase-out

Alberta's BPA is the highest in Canada and does not reduce for high earners.

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, your total tax is still over $26,000.

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 mean your first $16,452 is tax-free in the traditional sense. It means you get a credit worth $2,303.28 against your federal tax bill.

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→
Tax brackets 2026 →CPP rates 2026 →EI rates 2026 →Tax Freedom Day →

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. The BPA is the amount of income you can earn before you start paying income tax — it's applied as a non-refundable tax credit.

Does the BPA phase out for high earners?

Yes, the federal BPA phases out for 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.

Source: CRA, Alberta.ca. Rates for tax year 2026. View methodology →