Updated: April 2025  |  bremo.io financial guides

Tuition Tax Credit in Canada — How It Works 2025

The tuition tax credit is one of the most valuable tax benefits available to Canadian post-secondary students. It allows you to reduce your federal and provincial income tax by the amount of tuition you paid — and if your income is too low to use all of it, you can carry the credit forward or transfer it to a parent or grandparent.

Here's how the tuition tax credit works and how to make sure you're claiming every dollar you're entitled to.

What Is the Tuition Tax Credit?

The federal tuition tax credit is a non-refundable tax credit equal to 15% of eligible tuition fees paid to a designated Canadian post-secondary institution or a qualifying foreign university. It directly reduces federal tax owing — but it won't generate a refund if your income is too low.

Most provinces have a similar provincial tuition tax credit, typically at the provincial tax rate (which varies by province).

What Fees Are Eligible?

The following fees qualify for the tuition tax credit:

• Tuition fees paid to a designated Canadian post-secondary institution
• Fees for certain occupational training programs
• Fees paid to qualifying universities outside Canada (if enrolled in a course at least 3 weeks long)
• Ancillary fees such as athletic fees, student union fees, and academic fees — if over $100 and mandatory

The following do not qualify: student loan payments, residence fees, textbooks, parking, or fees under $100.

The T2202 Form

Every year, your school will issue a T2202 (Tuition and Enrolment Certificate), which shows:

• The total eligible tuition fees you paid that year
• The number of months you were enrolled full-time and part-time

Download your T2202 from your school's student portal by the end of February each year. You need this form to claim the credit on your tax return.

How to Claim the Credit

When you file your taxes using tax software (TurboTax, Wealthsimple Tax, etc.):

1. Enter the T2202 information in the tuition section
2. The software calculates your federal and provincial tuition credit automatically
3. If you have income tax owing, the credit is applied to reduce it
4. Any unused credit is automatically calculated and can be carried forward or transferred

Carrying Forward Unused Credits

If your income is low while you're a student, you likely won't have enough tax owing to use all your tuition credits. The good news: unused tuition credits can be carried forward indefinitely. Once you graduate and start earning a higher income, those accumulated credits reduce your taxes.

Example: A student who paid $7,500 in tuition over 4 years accumulates roughly $4,500 in unused federal credits. In year 1 of working, those credits could save them hundreds in tax.

Transferring the Credit to Family

If you don't need the credit yourself and don't want to carry it forward, you can transfer up to $5,000 of unused tuition credits to a parent, grandparent, or spouse on their tax return. The transfer is reported on Schedule 11 and given to your family member to claim on their own return.

You cannot transfer credits you've already carried forward — only current-year credits can be transferred. Once you choose to carry credits forward, you cannot transfer them to family later.

Provincial Tuition Credits

Most provinces have their own tuition tax credits on top of the federal credit, calculated at the province's lowest marginal tax rate. However, some provinces (like Ontario and BC) have reduced or eliminated their provincial tuition credits. Check your province's tax rules for the current year.

Tips

• Always download your T2202 even if you don't file taxes — you'll want it for future years
• File a tax return every year as a student, even if your income is $0 — this establishes your carry-forward balance with the CRA
• Check your Notice of Assessment from the CRA each year to confirm your accumulated tuition credit balance
• Decide early whether to transfer or carry forward — once you carry forward, you cannot transfer that amount