Canada offers dozens of federal tax credits that can significantly reduce the amount of tax you owe — or even result in a payment to you. Understanding the difference between refundable and non-refundable credits, and knowing which ones you qualify for, can save you hundreds or even thousands of dollars each year.
Non-Refundable A non-refundable tax credit can reduce your tax to zero, but any unused portion is lost — it cannot generate a refund beyond what you owe. Most personal credits are non-refundable.
Refundable A refundable tax credit can reduce your tax below zero, meaning you receive the remainder as a cash payment even if you paid no tax at all. These are extremely valuable for low-income filers.
| Credit | Amount / Rate | Who Qualifies |
|---|---|---|
| Basic Personal Amount | $16,129 × 15% | All Canadian residents |
| Spouse or Common-Law Partner Amount | Up to $16,129 × 15% | Supporting a spouse with low/no income |
| Eligible Dependent Amount | Up to $16,129 × 15% | Single parents supporting a dependent |
| Age Amount | $8,396 × 15% (income-tested) | Canadians aged 65+ |
| Pension Income Amount | Up to $2,000 × 15% | Those receiving eligible pension income |
| Disability Tax Credit | $9,872 × 15% | Severe and prolonged impairment (T2201) |
| Canada Caregiver Credit | Up to $7,999 × 15% | Caring for infirm dependent relatives |
| Medical Expense Tax Credit | Expenses over 3% of net income × 15% | All filers with eligible medical costs |
| Charitable Donation Tax Credit | 15% on first $200; 29%–33% over | Donors to registered charities |
| Tuition Tax Credit | Tuition paid × 15% | Post-secondary students |
| Interest on Student Loans | Interest paid × 15% | Those repaying government student loans |
| Home Buyers' Amount | $100 × 15% | First-time home buyers |
| Adoption Expense Credit | Up to $18,210 × 15% | Eligible adoption expenses |
| Canada Employment Amount | Up to $1,433 × 15% | Employees with employment income |
| Digital News Subscription Credit | Up to $500 × 15% | Subscriptions to qualifying digital news |
| Credit / Benefit | Amount | Who Qualifies |
|---|---|---|
| GST/HST Credit | Up to ~$519/year per adult | Low and modest-income individuals |
| Canada Child Benefit (CCB) | Up to $7,786/year per child under 6 | Families with children under 18 |
| Canada Workers Benefit (CWB) | Up to $1,518 (basic) | Low-income workers |
| Refundable Medical Expense Supplement | Up to $1,464 | Low-income workers with high medical costs |
| Climate Action Incentive (Canada Carbon Rebate) | Varies by province | Residents of participating provinces |
Most tax credits are claimed directly on your T1 income tax return. Tax software will guide you through a series of questions to identify which credits you qualify for. Some credits require supporting documentation:
Some non-refundable credits can be transferred to a spouse or supporting person when you cannot use them yourself:
Unused tuition credits can also be carried forward to future years indefinitely.
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