Age Amount Tax Credit in Canada 2025

What Is the Age Amount?

The Age Amount is a non-refundable federal tax credit available to Canadians who were 65 or older on December 31 of the tax year. It is claimed on line 30100 of your federal income tax return. The credit reduces the federal income tax you owe — but because it is non-refundable, it can reduce your tax to zero but cannot generate a refund on its own.

The Age Amount is indexed to inflation each year by the CRA. For 2025, the base amount is $8,790. At the 15% federal credit rate, this translates to a maximum federal tax reduction of $1,318.50.

Who Qualifies?

To claim the Age Amount you must:

• Have been 65 years of age or older on December 31 of the tax year
• Be a resident of Canada for tax purposes
• Have net income below the full phase-out threshold (~$98,309 for 2025)

There is no application process beyond claiming the credit on your tax return. The CRA does not notify you that you qualify — you simply claim it when you file.

How the Phase-Out Works

The Age Amount is income-tested. The full $8,790 is available only if your net income is at or below approximately $42,335. Above that threshold, the credit is reduced by 15 cents for every dollar of net income over the threshold.

Federal vs. Provincial Age Amount

The federal Age Amount is separate from provincial age-equivalent credits. Most provinces offer their own version of the Age Amount, which reduces provincial income tax. The combined federal and provincial savings can be significantly larger than the federal credit alone.

Provincial amounts are subject to annual indexation. Check your province's current year tax guide for exact figures.

Transferring the Age Amount to a Spouse

If you cannot use all of your Age Amount because you have little or no federal tax payable, you may be able to transfer the unused portion to your spouse or common-law partner. This is done using Schedule 2 on your federal return.

The transfer allows a higher-income spouse to claim the credit that a lower-income spouse cannot fully use — a useful strategy for couples with unequal retirement incomes.

How to Claim the Age Amount

• File your federal income tax return (T1)
• Complete Schedule 1 (Federal Tax)
• Enter the Age Amount on line 30100
• If transferring to a spouse, complete Schedule 2

All major Canadian tax software (Wealthsimple Tax, TurboTax, H&R Block, SimpleTax) will automatically calculate and apply the Age Amount when you enter your date of birth. There is no additional form or documentation required beyond your regular tax return.

Interaction with Other Senior Credits

The Age Amount works alongside other senior tax credits, not instead of them. You can claim the Age Amount and also claim:

• Pension Income Credit (line 31400)
• Medical Expense Tax Credit
• Disability Tax Credit (if eligible)
• Canada Caregiver Credit
• CPP/EI overpayment credits

OAS Clawback and the Age Amount

The Age Amount phase-out threshold and the OAS clawback threshold are different figures. The Age Amount begins phasing out at ~$42,335, while the OAS clawback begins at ~$90,997. A senior with income between these two figures will experience a partial Age Amount reduction but no OAS clawback.

Managing net income below the Age Amount phase-out threshold (through TFSA use, pension splitting, and strategic RRIF/RRSP timing) can preserve the full value of this credit.

Bottom Line

The Age Amount is one of the most straightforward senior tax benefits in Canada — no application, no special forms beyond your regular return, and automatic calculation in tax software. At full value it's worth over $1,300 in federal tax savings, plus provincial amounts on top. If you're 65+ and filing your own taxes, make sure line 30100 is populated. If you're using an accountant or tax software, it should be automatic.