Part-Time Work as a Student Canada — Tax Guide

Working part-time while in school is smart financially — here is how employment income is taxed, what to do with your T4, and how work income interacts with OSAP.

How Student Employment Income Is Taxed

Employment income for students is taxed the same way as any other Canadian worker — through the graduated federal and provincial income tax system. Your employer deducts income tax, CPP contributions, and EI premiums from each paycheque and remits them to the CRA. When you file your tax return, you reconcile what was withheld against what you actually owe.

Because students often earn below the basic personal amount ($15,705 federally in 2024), much of your employment income may be tax-free. Many students are over-withheld by employers and receive a refund when they file. This is why filing your return is so important — it gets your over-withheld tax back.

The Basic Personal Amount

Every Canadian taxpayer receives a basic personal amount — a credit that effectively makes the first portion of your income tax-free. For 2024, the federal basic personal amount is $15,705. Combined with the tuition credit, a student can earn significantly more than $15,705 before paying any federal tax. In many cases, students with part-time work income of $20,000–$25,000 owe little to no income tax after applying all available credits.

Annual Employment Income	Approx. Federal Tax (before credits)	After Basic Personal + Tuition Credit
$100	$0	$0 (fully covered)
$20,000	~$648	$0 (covered by credits)
$30,000	~$2,148	Reduced significantly by credits
$45,000	~$4,398	Partially offset by credits

Claim Exempt on TD1 If You Earn Under the Threshold

When you start a new job, your employer gives you a TD1 Personal Tax Credits Return form. This form determines how much tax is withheld from your pay. If your total annual income will be below the basic personal amount ($15,705), you can claim the full basic amount on the TD1 and your employer will withhold less tax — giving you more take-home pay each month instead of waiting for a refund after filing. If you have multiple jobs, only claim the full basic amount at your primary employer.

Part-Time Work and OSAP

Work income during school affects OSAP, but the exemptions are generous. For 2024–25, students can earn a significant amount before their OSAP entitlement is reduced. The income exemption is applied to your net income after taxes. Check the OSAP income exemption table on the ontario.ca/osap site for current thresholds — the exemption has been raised in recent years to better reflect current wage levels.

CPP and EI Contributions

As a student employee, you pay CPP (Canada Pension Plan) contributions and EI (Employment Insurance) premiums just like any other worker. CPP contributions build your future pension entitlement. EI premiums make you eligible for EI benefits if you lose your job after graduation (you typically need 420–700 insurable hours depending on your region). These deductions are compulsory — but the CPP contributions in particular are building real retirement wealth that you will benefit from decades from now.

Keeping Records

Keep all T4 slips, pay stubs, and records of work expenses. If you work from home or use personal equipment for work, some expenses may be deductible. Always file on time — the deadline is April 30 for most individuals. Students with self-employment income (tutoring, freelancing, gig work) have until June 15 to file but must pay any balance owing by April 30.