Tax changes affecting tax brackets:

> The basic personal amount increases to $10,320 in 2009, up from $9,600 in 2008.

> The upper threshold of the first (lowest) personal income tax bracket increases to $40,726, up from $37,885. The first tax bracket is subject to a 15% federal tax rate.

> The upper threshold of the second (next-highest) personal income tax bracket increases to $81,452, up from $76,769. This tax bracket is subject to a 22% federal rate.

New tax credits affecting homebuyers and homeowners:

> The amount that may be withdrawn from an RRSP under the Homebuyers’ Plan increases to $25,000 from $20,000.

> The first-time homebuyers’ tax credit, a non-refundable tax credit of up to $5,000 applied against the eligible “closing costs” of buying an eligible home. The credit will be calculated using the rate of the lowest tax bracket applicable.

> The home-renovation tax credit, a non-refundable tax credit toward eligible renovations made to a home. The HRTC will apply to renovations of more than $1,000 and up to $10,000. The tax credit is a temporary measure set to expire Feb. 1, 2010.

Other tax changes include:

> The amount on which the age credit is based will increase to $6,408, from $5,408, effective Jan. 1, 2008. The income level at which the age credit begins to be phased out remains $32,312, but the income level at which it is completely phased out increases to $75,302 from $68,365.

> The income levels on which the Canada child tax benefit and the national child benefit income supplement are based will be increased to match the increase in the upper threshold of the first personal income tax bracket.

> The phase-out levels of both programs will also be increased.

> An additional $580 million will be added to the working income tax benefit program in the form of tax relief provided to eligible individuals. The WITB was introduced in 2007 to make sure low-income or unemployed Canadians are financially better off in obtaining employment.