Full indexation of the personal income tax system was restored as of Jan. 1, 2000. Under Tuesday’s budget, 2003 tax filers will benefit from the indexation factor of 1.6%.

Further measures have been legislated that will provide tax relief in 2004. These measures will:

  • Ensure that the basic personal amount, the amount an individual can earn tax-free, is at least $8,000 (from $7,756 in 2003);
  • Ensure that the spousal amount is at least $6,800 (from $6,586 in 2003);
  • Raise the second bracket threshold to at least $35,000 (from $32,183 in 2003);
  • Raise the third bracket threshold to at least $70,000 (from $64,368 in 2003);
  • Raise the fourth bracket threshold to at least $113,804 (from $104,648 in 2003);
  • Raise the amount of family net income at which the National Child Benefit supplement is fully phased out and the CCTB base benefit phase-out begins to at least $35,000 (from $33,487 in 2003); and
  • Reduce the phase-out rate of the base benefit of the CCTB from 5% to 4% (from 2.5% to 2% for families with one child).