The basic personal amount is a non-refundable tax credit that lets every Canadian earn a base level of income each year free of federal income tax.
The basic personal amount (BPA) is the income everyone can earn before federal income tax applies, delivered as a non-refundable credit. It rises with inflation and is higher for lower-income taxpayers, phasing down for high earners. Each province also has its own basic amount stacked on top.
Because it is non-refundable, the BPA can reduce your tax to zero but not create a refund on its own. It is the reason a person with modest income may owe no tax at all, and it is built into payroll withholding tables so the benefit is spread across your paycheques rather than claimed only at filing.
If the federal basic personal amount is around $15,700, a person earning exactly that pays no federal income tax, because the credit offsets the tax that would otherwise apply to that income.
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