Tax Credits Canada 2025 Guide

Reduce what you owe with these federal and provincial tax credits for the 2024 tax year — from the Basic Personal Amount to the Canada Workers Benefit.

Non-Refundable vs. Refundable Credits

Canada has two types of tax credits. Non-refundable credits reduce your tax owing but cannot create a refund if they exceed your tax — any unused amount is lost (though some can be transferred to a spouse). Refundable credits can generate a refund even if you owe no tax.

Key Federal Non-Refundable Tax Credits 2024

Credit	Amount / Threshold	Federal Value (15%)
Basic Personal Amount	$15,705	$2,356
Spousal/partner amount	Up to $15,705	Up to $2,356
Age amount (65+)	$8,790 (reduced above $42,335)	Up to $1,319
Disability Tax Credit	$9,428 + supplements	Up to $1,414
Caregiver amount	Up to $7,999	Up to $1,200
CPP contributions	Up to max CPP contribution	15% of contributions
EI premiums	Up to max EI premium	15% of premiums

Medical Expense Tax Credit

You can claim eligible medical expenses that exceed the lesser of 3% of your net income or $2,635 (2024 threshold). The credit is 15% of eligible expenses at the federal level, plus provincial rates. Eligible expenses include:

• Prescription medications and insulin
• Dental treatment (not routine cleaning for some provinces)
• Vision care — glasses, contact lenses, laser eye surgery
• Hospital services not covered by provincial health plan
• Attendant care
• Medical devices prescribed by a doctor
• Gluten-free food for those with celiac disease

Charitable Donation Tax Credit

Donations to registered Canadian charities (and some foreign universities) receive a two-tier credit:

• 15% on the first $200 donated
• 29% on amounts above $200 (33% if income is over $220,000)

For a $500 donation: (15% × $200) + (29% × $300) = $30 + $87 = $117 federal credit. Combining donations with your spouse maximizes the 29% tier. Unused credits can be carried forward 5 years.

Disability Tax Credit (DTC)

The DTC is a non-refundable credit for individuals with severe and prolonged impairments. The base amount for 2024 is $9,428 ($1,414 federal credit at 15%). A supplement of up to $5,500 applies for children under 18. The DTC must be pre-approved by the CRA — apply using Form T2201 certified by a medical practitioner. The credit can be transferred to a supporting family member if the disabled person has insufficient income to use it.

Tuition Tax Credit

Post-secondary students can claim a 15% federal credit on eligible tuition fees (from Form T2202). Unused tuition credits can be carried forward indefinitely or transferred up to $5,000 to a parent, grandparent, or spouse in the current year.

Canada Workers Benefit (CWB) — Refundable

The Canada Workers Benefit is a refundable credit for low-income working Canadians. For 2024, the maximum basic amount is $1,518 for single individuals and $2,616 for families. It phases out above $23,495 (single) and $26,805 (families). This credit is refundable — you receive it as a payment even if you owe no income tax. Advance payments are available quarterly.

GST/HST Credit — Refundable

The GST/HST credit is a quarterly tax-free payment for low-to-moderate income Canadians. For 2024, the annual amounts are approximately $519 for single individuals and $680 for couples, plus $179 per child under 19. You are automatically assessed for this credit when you file your return — no separate application is required.

Provincial Tax Credits

Each province offers additional credits on top of federal credits. Common provincial credits include:

• Ontario Trillium Benefit (energy, property, and sales tax components)
• BC Climate Action Tax Credit
• Alberta Child and Family Benefit
• Quebec Solidarity Tax Credit