Plain meaning
A non-refundable tax credit amount available to individuals that helps shelter a basic level of income from federal tax.
Also called
BPA
Key points
- Basic Personal Amount affects how individuals report income, claim relief, receive benefits, or plan savings and retirement decisions.
- Eligibility and amounts often depend on annual tax filing, family status, age, income, residence, or documented expenses.
- The concept can affect both tax payable and income-tested benefits, so the after-tax result may differ from the headline amount.
- Readers should treat the glossary entry as orientation; the actual result depends on the current rules and personal facts.
Why it comes up
Changes to the basic personal amount affect many taxpayers and are often discussed in tax-cut announcements.