Tax Deductions and Credits – Canada

Income below this threshold is effectively tax-free. Generates a non-refundable credit of $2,303 (14% × $16,452). Reduced for high earners above $177,882 net income.

Non-refundable credit for employment income. Recognizes general work expenses. Applied automatically — no receipts needed. Credit value: $200 (14% × $1,428).

Each province sets its own basic personal amount. Ranges from ~$8,481 (Quebec, different system) to ~$22,323 (Alberta). Applied in addition to the federal amount.

For 2026 tax year: maximum $33,810 or 18% of prior year earned income (whichever is less). Unused room carries forward indefinitely. Directly reduces taxable income at your marginal rate.

Deduction for daycare, nannies, camps: $8,000 per child under 7, $5,000 per child 7-16. Must be claimed by lower-income spouse. Reduces taxable income.

Moving costs deductible if you relocate at least 40km closer to a new job or school. Includes transport, temporary housing, legal fees. Can only deduct against income from new location.

Union dues, professional membership fees required for work. Reported on T4 slip. Fully deductible from income. Automatic — no separate claim needed if on T4.

Interest on money borrowed to invest, investment management fees, accounting fees for investment income. Deductible against all income sources.

Claim medical expenses exceeding the lesser of 3% of net income or ~$2,759 (2026). Includes dental, prescriptions, glasses, private insurance premiums, medical travel. 15% credit on eligible amount.

15% credit on first $200 of donations; 29% on amounts above $200 (33% if income is in the top bracket). Combined with provincial credits, effective rate can exceed 50% for large donations.

15% federal credit on eligible tuition fees. No longer available for education or textbook amounts. Unused tuition can be carried forward or transferred to a parent/spouse (up to $5,000).

Federal disability amount of $9,872 (credit value ~$1,382) for individuals with severe and prolonged impairment. Requires Form T2201 certified by a medical professional.

Additional amount for taxpayers 65 or older. Reduced when net income exceeds $44,325 and eliminated at approximately $104,510. Credit value: ~$1,264.

Quarterly payments to offset GST for lower-income individuals. Up to $356 per adult, $188 per child in 2026. Income-tested — phases out at higher income. Paid July, October, January, April.

Tax-free monthly payment for children under 18. Up to $7,787/year per child under 6, $6,570 for ages 6-17 (2026 amounts). Reduced based on family net income. Paid monthly.

Refundable credit for low-income workers. Based on working income. Phase-in and phase-out thresholds indexed to inflation. Includes disability supplement.