The tax deadline is April 30, and if you don’t claim these credits, you’re leaving money on the table!
Canada has a ton of tax credits, and it’s easy to miss out on big savings. Most people rely on their tax software to catch everything—but that’s a mistake.
Today, I’ll walk you through the key tax credits you need to know. We’ll start with the most common ones, then move into the hidden gems many people overlook.
I’ll go through them quickly, so you can focus on the ones that apply to you, there might be one or two that apply to you! And stick around until the end—I’ll show you how to stack multiple credits together for even bigger tax savings.
🚨 Important: The first credit on this list is automatically applied, but you’ll need to manually claim the rest. Make sure you do if you qualify for any of these!
1.Basic Personal Amount (BPA) – First $16,129 Tax-Free
The Basic Personal Amount (BPA) is a non-refundable tax credit that allows Canadians to earn a portion of income tax-free before federal income tax applies. For the 2025 tax year, the BPA is $16,129 for individuals with net income below the 29% tax bracket threshold.
Those with higher incomes (above the 33% tax bracket threshold) receive a reduced BPA of $14,538.
2.Age Amount Tax Credit – Extra Savings for Seniors
Canadians 65 and older can claim the Age Amount tax credit, a non-refundable credit designed to reduce taxes in retirement.
✅ For 2025, the maximum claimable amount is $9,028 federally.
✅ The credit is 15% of eligible income, reducing taxes owed by up to $1,354.
✅ Phase-out applies: If your net income exceeds around $44,000, the credit is gradually reduced.
For example, if Selena earns $42,000 and is 66 years old, she qualifies for the full $9,028 Age Amount Credit. But if she earns $46,000, the credit starts shrinking.”
This tax break helps retirees keep more of their money while managing taxable income efficiently.
3.Canada Caregiver Amount – Support for Dependent Relatives
The Canada Caregiver Amount (CCA) provides tax relief to individuals supporting a spouse, common-law partner, child, or other dependent with a physical or mental impairment. For the 2025 tax year, eligible individuals can claim:
- $8,601 for infirm dependants aged 18 or older
- $2,687 for a child under 18 with a disability
The credit amount is reduced based on the dependant’s net income, and eligibility varies. In some cases, additional amounts may be claimed for spouses or common-law partners. Make sure you retain medical documentation if required.
4.Medical Expenses Tax Credit – Claim Your Healthcare Costs
The Medical Expenses Tax Credit helps Canadians offset out-of-pocket healthcare costs. You can claim eligible medical expenses that exceed 3% of your net income or $2,834 (whichever is lower) for 2025.
Eligible expenses include:
- Prescriptions, dental, and vision care
- Physiotherapy, psychotherapy, and other medical treatments
- Medical travel expenses (if care isn’t available locally)
To maximize your claim, combine expenses for yourself, your spouse, and dependents. Keep detailed records and receipts for verification. Many Canadians forget to track these costs—don’t miss out!
I dive much deeper into this topic in another blog post: 5 Common Medical Expenses the CRA Lets You Claim, so be sure to check it out!
5.Pension Income Amount – Tax Credit for Retirees
Canadians receiving eligible pension income can claim a non-refundable tax credit on up to $2,000 of pension income at both the federal and provincial/territorial levels. This credit is calculated as 15% of the lesser of $2,000 or eligible pension income received.
- Any unused portion can be transferred to a spouse or common-law partner.
- Pension income splitting allows couples to allocate eligible pension income for tax savings.
- The provincial/territorial tax credit applies at the lowest provincial tax rate on the eligible amount.
6.Canada Workers Benefit (CWB) – Extra Money for Low-Income Workers (Refundable)
The Canada Workers Benefit (CWB) is a refundable tax credit designed to support low-income workers. For 2025, eligible individuals can receive:
- Up to $1,633 for singles with no children
- Up to $2,813 for families
The benefit starts to phase out at $26,855 (singles) and $30,639 (families). Advance payments are available, meaning you can receive part of the benefit throughout the year instead of waiting until tax season. If you or your spouse has a disability, an additional supplement of up to $843 may be available.
7.Tuition Tax Credit
The Tuition Tax Credit allows students to reduce their income taxes by claiming eligible tuition fees paid to a post-secondary institution.
Who Can Claim It?
- You must have paid at least $100 in tuition fees to a recognized educational institution in Canada or abroad.
- The courses must be at the post-secondary level or improve your occupational skills (for students aged 16+).
- Online courses may qualify if they meet full-time attendance requirements.
If you don’t need the credit now, you can carry it forward to a future tax year or transfer up to $5,000 to a parent, grandparent, spouse, or common-law partner.
8.Donation Tax Credit
Donating to registered charities can provide significant tax savings. For 2025, the tax credit rates are:
- 15% on the first $200 donated
- 29-33% on amounts above $200 (depending on income)
- Up to 75% of your net income can be claimed
If you don’t use your donation credits immediately, you can carry them forward for up to 5 years. In-kind donations (such as stocks or securities) may offer additional tax benefits. Charitable giving can be both impactful and financially rewarding.
9.Canada Child Benefit (CCB) – Tax-Free Support for Parents
The Canada Child Benefit (CCB) provides tax-free monthly payments to help families with the cost of raising children.
- In 2025, parents can receive up to $7,997 per child under 6 and $6,748 per child aged 6–17.
- The benefit is income-tested, meaning payments phase out as family income increases.
- No tax is paid on the amount received.
This tax-free monthly payment is designed to help families with the cost of raising children under 18. Once you apply and are deemed eligible, payments are automatically issued without the need for annual claims
10.Disability Amount – Worth Up to $9,000 in Tax Savings
Individuals with severe, prolonged disabilities may qualify for the Disability Tax Credit (DTC). The 2025 federal disability amount is $10,138, reducing taxes owed. Any unused portion can be transferred to a spouse, common-law partner, or supporting relative.
You must apply for this non-refundable tax credit using Form T2201. Once approved, you can claim the credit on your tax return.
Before going to the next benefit, If you want to save more on taxes in retirement, check out our free guide with 5 proven strategies to keep more of your money.
📩 Grab your free copy—link is here:
https://blueprintfinancial.ca/retirement-tax-saving-guide
11.Amount for an Eligible Dependant – Tax Credit for Single Parents
If you are a single parent or supporting a dependent relative, you may claim a non-refundable tax credit of up to $16,129 in 2025.
- The dependant must have lived with you in a home you maintained.
- Their net income must be below the set threshold to qualify.
- If eligible for the Canada caregiver amount, you may receive a higher credit.
12.Canada Training Credit
The Canada Training Credit (CTC) is a refundable tax credit designed to help Canadians cover the cost of eligible education and job training.
- Eligible individuals can accumulate $250 per year toward their Canada training credit limit, up to a lifetime maximum of $5,000.
- To qualify, you must meet income thresholds—for 2025, you need a minimum working income of $11,821 and maximum net income of $173,205.
13.Interest Paid on Student Loans – Don’t Miss This Tax Break!
You can claim a non-refundable tax credit for 100% of the interest paid on eligible government student loans.
- Applies to Canada Student Loans and provincial/territorial student loans (private loans do not qualify).
- If you don’t use the credit immediately, you can carry it forward for up to 5 years.
14.Digital News Subscription Tax Credit – Get 15% Back
Support Canadian journalism while saving on taxes!
- You can claim a non-refundable tax credit of 15% on up to $500 per year spent on eligible digital news subscriptions.
- The subscription must be to a qualified Canadian journalism organization (QCJO).
15.Home Accessibility Expenses – Up to $20,000 for Renovations
Seniors and persons with disabilities can claim up to $20,000 in home renovation expenses to improve accessibility.
- Eligible expenses include installing ramps, grab bars, walk-in tubs, or lowering cabinets.
- The credit reduces taxes by up to $3,000 (15% of $20,000).
- Can be combined with the Medical Expenses Tax Credit for additional savings.
16.The Ultimate Tax-Saving Combo: How to Stack Multiple Credits for Bigger Refunds
The key to maximizing your tax savings isn’t just knowing about individual credits—it’s stacking them together for even bigger tax breaks. Many Canadians don’t realize how certain tax credits and deductions can work together, effectively reducing taxable income or boosting refunds.
Example: Retirement Tax Savings
✅ Pension Income Amount – Up to $2,000 per person in eligible pension income, reducing taxes.
✅ Age Amount Credit – For those 65+, worth up to $9,028 federally in 2025.
How It Works:
John and Linda are both retired, but John has a large pension, while Linda has a smaller income. Since they’re both over 65, they each claim the Pension Income Amount to lower their taxable income. John also qualifies for the Age Amount Credit, giving him an extra tax break.
🎯 Stacked Savings: Pension Income Amount + Age Amount = Lower taxes & a bigger refund.
📌 Bonus Tip: Pension income splitting could save them even more by shifting some of John’s income into Linda’s lower tax bracket.
Example: The Ultimate Family Tax-Saving Combo – Stack These for Bigger Refunds
Families can combine multiple tax credits to reduce taxes and increase their refund. If you have kids or dependents, here’s how to maximize your savings:
Example: Family Tax Savings
✅ Canada Child Benefit (CCB) – Tax-free monthly payments for parents with kids under 18.
✅ Child Care Expenses Deduction – Claim daycare, babysitting, or after-school program costs.
✅ Canada Caregiver Amount – For parents supporting a child with a disability.
How It Works:
Sarah and Mike have two young kids and earn a combined $85,000 per year. Their children are in daycare, and one child has a disability. Here’s how they stack tax credits:
1️⃣ Canada Child Benefit (CCB) – They receive tax-free monthly payments to help with child-related costs.
2️⃣ Child Care Expenses Deduction – Mike claims daycare expenses, lowering his taxable income.
3️⃣ Canada Caregiver Amount – Since one child has a disability, they get an extra tax credit.
🎯 Stacked Savings: CCB (Tax-Free) + Child Care Deduction + Caregiver Credit = Thousands in tax savings!
📌 Bonus Tip: Families can also split income by contributing to a spousal RRSP to reduce overall household tax liability.
There are plenty of tax credits that can put money back in your pocket, and that’s just the beginning!
The truth is, there are countless ways to optimize your taxes and combine credits to your advantage. If you’re serious about saving, check out our financial planning services to see how we can create a personalized tax strategy just for you. Plus, don’t miss out on more money-saving tips—sign up for our free financial newsletter today!
