Updated: April 2025  |  bremo.io financial guides

Canada Education Tax Deductions and Credits 2025

Students and their families can access multiple tax benefits that reduce the cost of post-secondary education. From the tuition credit to the scholarship exemption to moving expense deductions, here is the complete list of education-related tax savings available in Canada for 2025.

Federal Tuition Tax Credit

15% of eligible tuition fees (federal). Carry forward indefinitely or transfer up to $5,000 to a supporting parent. Provincial tuition credits add an additional 5-10%. Combined credit rate is approximately 20% in most provinces. Claimed on Schedule 11 using the T2202 form from your school.

Scholarship and Bursary Exemption

All scholarship, fellowship, and bursary income received by full-time post-secondary students is completely tax-exempt — no dollar cap. Part-time students exempt amounts up to qualifying educational expenses. Report on T1 return at Line 13010, then claim exemption on Schedule 11.

Student Loan Interest Credit

15% (federal) of interest paid on qualifying government student loans — Canada Student Loans Act, provincial acts. Private SLOCs don't qualify. Carry forward unused credit up to five years. Even though federal loans are now interest-free, provincial loans in some provinces still charge interest, making this credit still relevant.

Moving Expense Deduction

Deductible if you moved 40+ km closer to school for full-time studies. Eligible: transportation, storage, travel costs, temporary accommodation (up to 15 days), and connection fees. Deduction limited to scholarship/employment income at new location. Carry excess forward one year.

Childcare Expenses

Student parents can claim childcare expenses incurred while attending school. Full-time students use the regular childcare deduction against income. Part-time students claim two-thirds of childcare costs. Claimed by the lower-income spouse in most cases.

Disability Tax Credit

Students with qualifying disabilities can claim the DTC (~$1,800 federal non-refundable credit). DTC approval also unlocks enhanced RESP grants, extra Canada Student Grants, and extended RAP forgiveness (15 years vs. 10).

Filing Tips

• File even with zero income — creates RRSP room and claims credits
• Claim all tuition credits to build carryforward room
• Report T4A scholarship income and claim the exemption — don't skip reporting
• Claim student loan interest annually (don't let 5-year window expire)
• Coordinate with parents on credit transfers for maximum family savings