Post-secondary education in Canada comes with significant tax benefits. Students who understand the full range of credits and deductions available can dramatically reduce their tax bills — or build up credits to carry forward into higher-earning years when they provide even greater value.
The tuition tax credit is the largest tax benefit for most students. You can claim eligible tuition fees paid to a qualifying Canadian educational institution. Eligible fees include:
The credit is calculated at 15% of the eligible tuition amount federally, plus a provincial rate. There is no minimum threshold — every dollar of eligible tuition generates a credit.
Your educational institution must issue a T2202 (Tuition and Enrolment Certificate) showing your eligible tuition fees and the months of full-time and part-time enrolment. CRA matches T2202 data against returns, so report exactly what is on your T2202.
If your tuition credit exceeds your federal tax owing, the unused portion is automatically carried forward to future years. There is no expiry — credits accumulated during years of low student income can be used when you enter the workforce and face higher tax bills.
Your carried-forward tuition credits appear on your CRA My Account and on your Notice of Assessment each year.
Students who cannot use all of their tuition credit themselves (because they owe little or no tax) can transfer up to $5,000 of unused tuition credits to:
The student must first apply the credit against their own tax owing. Any remaining amount (up to $5,000 per year) can be transferred. The supporting relative claims the amount on line 32400 of their T1 return.
Interest paid on government student loans (Canada Student Loans, provincial student loans) qualifies for a federal non-refundable tax credit. The credit is 15% of the eligible interest paid in the year or in any of the previous 5 years.
As covered in the moving expense guide, full-time students who move at least 40km closer to their school can deduct eligible moving expenses against scholarship income. This is a valuable but often overlooked benefit.
Scholarship, fellowship, and bursary income is exempt from tax for full-time students enrolled in a qualifying program. For part-time students, the exemption applies to amounts up to the cost of tuition for the program. Income beyond these exemptions must be reported on line 13010 of the T1.
The federal education and textbook amounts were eliminated in 2017. However, some provinces still offer provincial equivalents. Check your province's credits when filing.
Your T2202 distinguishes between part-time and full-time enrolment. This matters for scholarship exemptions and for transfer eligibility. Some provincial credits also differ based on enrolment status.
Employed Canadians taking courses for professional development may be able to claim tuition through the T2202 if the institution qualifies. Some employers reimburse tuition — reimbursements included in your T4 income allow you to still claim the full credit.
While not a tax credit, RESP withdrawals (Educational Assistance Payments) are taxed in the student's hands — typically at a very low rate due to low student income. The Canada Education Savings Grant (CESG) — 20% on first $2,500 contributed per year, up to $500/year — is one of the best education savings incentives available.
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