Age amount 2026: $9,208, reduced above $46,432 of net income

What are the 2026 age amount figures next to 2025?

The 2026 federal age amount is $9,208, and the reduction starts at $46,432 of net income. Both rose 2.0% with indexation, from $9,028 and $45,522 in 2025 canada.ca. The 2026 TD1 gives the end of the band: a partial amount applies between $46,432 and $107,819 canada.ca.

The credit is the amount times the appropriate percentage, which the Act defines as the lowest rate in subsection 117(2) for the year laws-lois.justice.gc.ca. That is 14% for 2026 canada.ca. For 2025 the rate fell from 15% to 14% on July 1, which made it 14.5% for the year canada.ca. So the 2026 credit is $19.94 smaller than 2025 even though the amount went up: $9,208 at 14% is $1,289.12, while $9,028 at 14.5% was $1,309.06.

The CRA's line 30100 page still shows the 2025 figures as of October 2026, so use the TD1 or the indexation table for 2026 canada.ca.

How much age amount does a client keep at each income level?

Subtract $46,432 from net income, take 15% of the excess, and subtract that from $9,208. The band is $61,387 wide, because $9,208 divided by 15% is $61,386.67.

Worked example: your client is 68 with $70,000 of net income in 2026. The excess is $70,000 minus $46,432, or $23,568. Fifteen percent of that is $3,535.20, so the age amount is $9,208 minus $3,535.20, or $5,672.80. At 14%, the federal credit is $794.19 instead of $1,289.12.

Inside the band, every extra dollar of net income costs 15 cents of age amount, which is 2.1 cents of federal tax at 14%. That sits on top of the client's marginal rate, so an RRIF withdrawal or a capital gain inside the band costs a little more than the bracket table suggests.

On the T1, a reduced claim comes from the chart for line 30100 on the Federal Worksheet canada.ca.

Who qualifies, and which income counts?

Paragraph 118(2) of the Income Tax Act gives the credit to an individual who has reached 65 before the end of the year, and reduces it by 15% of income above the threshold laws-lois.justice.gc.ca. The dollar figures in the Act are $6,408 and $25,921, and section 117.1 indexes every dollar amount in subsection 118(2) each year, which is how they became $9,208 and $46,432 for 2026 laws-lois.justice.gc.ca.

For 2026, that means a client born in 1961 or earlier. There's no proration for the birthday: a client who turns 65 on December 31, 2026 gets the full $9,208 if net income allows. The CRA tests income at net income on line 23600 canada.ca. Turning 65 by December 31 also opens the home accessibility tax credit for renovations to your client's home.

Special rules apply in the year a client moves to or from Canada, or goes bankrupt, and the CRA asks you to contact it for those canada.ca. For a client who died, claim the full age amount on the final return and again on each optional return canada.ca.

How pension splitting can shrink the age amount

An elected split increases the receiving spouse's net income, and the CRA names the age amount among the credits that change with it canada.ca. The receiving spouse reports the split on line 11600, from line 22 of Form T1032 canada.ca. Up to 50% of eligible pension income can be allocated canada.ca.

Take two spouses, both over 65, for 2026. One has $100,000 of net income including at least $40,000 of eligible pension income; the other has $40,000. They split $20,000, which moves them to $80,000 and $60,000.

The split still wins here on the age amount alone, but the receiving spouse loses $284.93 of credit that a quick bracket comparison misses. Run the split both ways in software and compare total family tax, including the age amount, the pension income amount and the OAS recovery tax. The pension income splitting page covers the election itself.

Can the unused age amount move to a spouse?

Yes. If the spouse or common law partner didn't need all of the age amount to bring federal tax to zero, your client claims the unused part on line 32600 through Schedule 2 canada.ca. The claim isn't allowed if the couple was separated for 90 days or more, including December 31, because of a breakdown in the relationship canada.ca.

This is the usual case for a spouse with little income: their age amount is $9,208, but if the basic personal amount already wipes out their tax, the whole age amount can move. On payroll, line 11 of the 2026 TD1 lets the employee enter the unused age amount of a spouse who won't use it canada.ca.

How the age amount works on payroll and provincial returns

On the 2026 federal TD1, line 3 takes $9,208 when the employee will be 65 or older on December 31, 2026 and net income will be $46,432 or less. Between $46,432 and $107,819 the employee enters a partial amount from the line 3 section of Form TD1-WS canada.ca. The TD1 2026 page covers claim codes.

Provinces and territories have their own age amount, claimed on line 58080 of the Form 428 with its own threshold and phase out. The CRA's 2025 figures include Ontario at $6,223 from $46,330 of net income and Alberta at $6,221 from $46,308, and Yukon uses the federal amount from line 30100. Quebec residents follow Revenu Québec instead canada.ca. As of October 2026, that page hasn't been updated with the 2026 provincial amounts.