Tax wiki
s. 117.1

PART I — Income Tax · DIVISION E — Computation of Tax · SUBDIVISION A — Rules Applicable to Individuals · Annual Adjustment of Deductions and Other Amounts

Annual adjustment

Not yet annotated · Text current to 2026-06-21 · section last amended 2026-06-18

Current text

(1)

Each specified amount in relation to tax payable under this Part or Part I.2 for a taxation year shall be adjusted so that the amount to be used for the year under the provision for which the amount is relevant is the total of

(a)

the amount that would, but for subsection (3), be the amount to be used under the relevant provision for the preceding taxation year, and

(b)

the product obtained by multiplying

(i)

the amount referred to in paragraph (a)

(ii)

the amount, adjusted in such manner as may be prescribed and rounded to the nearest one-thousandth, or, where the result obtained is equidistant from two consecutive one-thousandths, to the higher thereof, that is determined by the formula

(A/B) - 1

where

is the Consumer Price Index for the 12 month period that ended on September 30 next before that year, and

is the Consumer Price Index for the 12 month period immediately preceding the period mentioned in the description of A.

(1.1)

[Repealed, 2017, c. 20, s. 11]

Annual adjustment — amounts

(2)

For the purposes of subsection (1), each of the following amounts is a specified amount in relation to tax payable under this Part or Part I.2 for a taxation year:

(a)

the amount of $300 referred to in subparagraph 6(1)(b)(v.1);

(b)

the amount of $1,000 referred to in the formula in paragraph 8(1)(s);

(b.1)

the amount of $10,000 referred to in subparagraph 8(1)(t)(i), for a taxation year that begins after 2026;

(c)

the amount of $625,000 referred to in paragraph 110.6(2)(a), for a taxation year that begins after 2025;

(d)

each of the amounts expressed in dollars in subsection 117(2);

(e)

each of the amounts expressed in dollars in the description of B in subsection 118(1);

(f)

the amount of $12,298 in the description of A in subsection 118(1.1);

(g)

the amount of $15,000 in paragraph (d) of the description of F in subsection 118(1.1);

(h)

each of the amounts expressed in dollars in subsection 118(2);

(i)

the amount of $1,000 referred to in subsection 118(10);

(j)

the amount of $15,000 referred to in subsection 118.01(2);

(k)

each of the amounts expressed in dollars in subsection 118.2(1);

(l)

each of the amounts expressed in dollars in subsection 118.3(1);

(m)

each of the amounts expressed in dollars in subsection 122.5(3);

(m.1)

each of the amounts expressed in dollars in subsection 122.5(3.005), for a taxation year that begins after 2026;

(n)

the amount of $2,500 referred to in subsection 122.51(1);

(o)

each of the amounts expressed in dollars in subsection 122.51(2);

(p)

the amount of $14,000 referred to in subsection 122.7(1.3);

(q)

the amounts of $1,395 and $2,403 in the description of A, and each of the amounts expressed in dollars in the description of B, in subsection 122.7(2);

(r)

the amount of $720 in the description of C, and each of the amounts expressed in dollars in the description of D, in subsection 122.7(3);

(s)

the amount of $10,000 in the description of B in subsection 122.91(2); and

(t)

each of the amounts expressed in dollars in Part I.2.

Rounding

(3)

Where an amount referred to in this section, when adjusted as provided in this section, is not a multiple of one dollar, it shall be rounded to the nearest multiple of one dollar or, where it is equidistant from two such consecutive multiples, to the higher thereof.

Consumer Price Index

(4)

In this section, the Consumer Price Index for any 12 month period is the result arrived at by

(a)

aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, adjusted in such manner as is prescribed, for each month in that period;

(b)

dividing the aggregate obtained under paragraph 117.1(4)(a) by twelve; and

(c)

rounding the result obtained under paragraph 117.1(4)(b) to the nearest one-thousandth or, where the result obtained is equidistant from two consecutive one-thousandths, to the higher thereof.

Source: Justice Laws Website. Not an official version.

Historic text

Immediately preceding version, in force from 2026-03-26 to 2026-06-17:

Show the text in force 2026-03-26 to 2026-06-17

Annual adjustment

117.1 (1) Each specified amount in relation to tax payable under this Part or Part I.2 for a taxation year shall be adjusted so that the amount to be used for the year under the provision for which the amount is relevant is the total of
- (a) the amount that would, but for subsection (3), be the amount to be used under the relevant provision for the preceding taxation year, and
- (b) the product obtained by multiplying
  - (i) the amount referred to in paragraph (a)
  by
  - (ii) the amount, adjusted in such manner as may be prescribed and rounded to the nearest one-thousandth, or, where the result obtained is equidistant from two consecutive one-thousandths, to the higher thereof, that is determined by the formula
    (A/B) - 1
    where
    Ais the Consumer Price Index for the 12 month period that ended on September 30 next before that year, andBis the Consumer Price Index for the 12 month period immediately preceding the period mentioned in the description of A.
(1.1) [Repealed, 2017, c. 20, s. 11]
Annual adjustment — amounts
(2) For the purposes of subsection (1), each of the following amounts is a specified amount in relation to tax payable under this Part or Part I.2 for a taxation year:
- (a) the amount of $300 referred to in subparagraph 6(1)(b)(v.1);
- (b) the amount of $1,000 referred to in the formula in paragraph 8(1)(s);
- (c) the amount of $625,000 referred to in paragraph 110.6(2)(a), for a taxation year that begins after 2025;
- (d) each of the amounts expressed in dollars in subsection 117(2);
- (e) each of the amounts expressed in dollars in the description of B in subsection 118(1);
- (f) the amount of $12,298 in the description of A in subsection 118(1.1);
- (g) the amount of $15,000 in paragraph (d) of the description of F in subsection 118(1.1);
- (h) each of the amounts expressed in dollars in subsection 118(2);
- (i) the amount of $1,000 referred to in subsection 118(10);
- (j) the amount of $15,000 referred to in subsection 118.01(2);
- (k) each of the amounts expressed in dollars in subsection 118.2(1);
- (l) each of the amounts expressed in dollars in subsection 118.3(1);
- (m) each of the amounts expressed in dollars in subsection 122.5(3);
- (m.1) each of the amounts expressed in dollars in subsection 122.5(3.005), for a taxation year that begins after 2026;
- (n) the amount of $2,500 referred to in subsection 122.51(1);
- (o) each of the amounts expressed in dollars in subsection 122.51(2);
- (p) the amount of $14,000 referred to in subsection 122.7(1.3);
- (q) the amounts of $1,395 and $2,403 in the description of A, and each of the amounts expressed in dollars in the description of B, in subsection 122.7(2);
- (r) the amount of $720 in the description of C, and each of the amounts expressed in dollars in the description of D, in subsection 122.7(3);
- (s) the amount of $10,000 in the description of B in subsection 122.91(2); and
- (t) each of the amounts expressed in dollars in Part I.2.
Rounding
(3) Where an amount referred to in this section, when adjusted as provided in this section, is not a multiple of one dollar, it shall be rounded to the nearest multiple of one dollar or, where it is equidistant from two such consecutive multiples, to the higher thereof.
Consumer Price Index
(4) In this section, the Consumer Price Index for any 12 month period is the result arrived at by
- (a) aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, adjusted in such manner as is prescribed, for each month in that period;
- (b) dividing the aggregate obtained under paragraph 117.1(4)(a) by twelve; and
- (c) rounding the result obtained under paragraph 117.1(4)(b) to the nearest one-thousandth or, where the result obtained is equidistant from two consecutive one-thousandths, to the higher thereof.

[NOTE: Application provisions are not included in the consolidated text
see relevant amending Acts and regulations.]
R.S., 1985, c. 1 (5th Supp.), s. 117.1
1994, c. 7, Sch. VII, s. 7
1996, c. 21, s. 22
1997, c. 25, s. 24
1998, c. 19, s. 21
1999, c. 22, s. 30
2000, c. 14, s. 37, c. 19, s. 23
2005, c. 19, s. 22
2006, c. 4, s. 59
2007, c. 2, s. 19, c. 16, ss. 2, 4, c. 35, s. 35
2010, c. 25, s. 22
2013, c. 40, s. 49
2017, c. 20, s. 11
2018, c. 12, s. 10
2019, c. 29, s. 14
2021, c. 23, s. 18
2026, c. 1, s. 2
2026, c. 3, s. 41

This version on Justice Laws

Earlier versions: Justice Laws point-in-time versions of the Act (from 31 August 2004), and CanLII (under “Versions”). On Justice Laws, each version of section 117.1 links to the one before it.

Enacting and amending legislation

R.S., 1985, c. 1 (5th Supp.), s. 117.1; 1994, c. 7, Sch. VII, s. 7; 1996, c. 21, s. 22; 1997, c. 25, s. 24; 1998, c. 19, s. 21; 1999, c. 22, s. 30; 2000, c. 14, s. 37, c. 19, s. 23; 2005, c. 19, s. 22; 2006, c. 4, s. 59; 2007, c. 2, s. 19, c. 16, ss. 2, 4, c. 35, s. 35; 2010, c. 25, s. 22; 2013, c. 40, s. 49; 2017, c. 20, s. 11; 2018, c. 12, s. 10
2019, c. 29, s. 14
2021, c. 23, s. 18
2026, c. 1, s. 2
2026, c. 3, s. 41
2026, c. 22, s. 5

Text before 2004 is found in the annual Statutes of Canada cited above. Application and coming-into-force provisions are not part of the consolidation; see the amending Acts.

Cross-references

This section refers to

s. 6 s. 8 s. 110.6 s. 117 s. 118 s. 118.01 s. 118.2 s. 118.3 s. 122.5 s. 122.7 s. 122.51 s. 122.91

Referred to in

s. 122.61 s. 127.46 s. 146 s. 205 s. 207.01 s. 248

References are generated from the statutory text and list other sections of the Act only.

Citation

Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 117.1.