The Canadian tax system offers several tax credits to help students manage their education expenses.
With the new Canadian Prime Minister introducing potential changes in 2025, it’s crucial for students to stay informed about their tax benefits.
These credits can reduce taxable income, lower student debt, and make education more affordable.
In this guide, we’ll cover key tax credits available to students in Canada for 2025, including eligibility criteria and how to claim them.
Tax Credits
Here’s a quick overview of the main student tax credits available in 2025:
| Tax Credit | Description | Eligibility |
|---|---|---|
| Tuition Tax Credit | A non-refundable credit that reduces income tax owed by claiming eligible tuition fees. | Students who have paid tuition to a designated educational institution. |
| Interest on Student Loans | A non-refundable credit for interest paid on government student loans. | Individuals repaying government-issued student loans. |
| Moving Expenses Deduction | Allows students to deduct moving costs if they relocate at least 40 km closer to school. | Full-time students moving for post-secondary education. |
| Canada Training Credit (CTC) | A refundable credit to help cover training costs, accumulating $250 per year. | Canadian residents aged 25-65 with eligible income. |
| Student Tax-Free Threshold | Students earning below a certain income threshold may not need to pay taxes. | Any student earning below the basic personal amount ($15,000 for 2025). |
Let’s explore these credits in detail.
Tuition
The Tuition Tax Credit helps reduce income tax by allowing students to claim eligible tuition fees.
Eligibility:
- Must have paid tuition to a recognized post-secondary institution in Canada or an eligible foreign university.
- Unused credits can be carried forward or transferred (up to $5,000) to a parent, grandparent, or spouse.
How to Claim:
- Obtain Form T2202 from your school, showing eligible tuition fees.
- Enter the amount on Schedule 11 of your tax return.
For more details, visit the Canada Revenue Agency.
Loan Interest
If you are repaying a government student loan, you can claim a tax credit for the interest paid.
Eligibility:
- Applies only to federal or provincial student loans.
- Private loans or personal lines of credit do not qualify.
How to Claim:
- Keep receipts for interest payments.
- Enter the total amount on Line 31900 of your tax return.
For more details, check the CRA website.
Moving
If you move at least 40 km closer to school for full-time studies, you can deduct moving expenses.
Deductible Expenses:
- Travel costs (gas, flights, train tickets).
- Moving services (truck rentals, professional movers).
- Temporary accommodations (up to 15 days).
How to Claim:
- Keep all receipts for eligible expenses.
- Complete Form T1-M and report the amount on Line 21900 of your tax return.
More details can be found on the CRA website.
Training
The Canada Training Credit (CTC) helps students with training costs. It’s a refundable tax credit that accumulates $250 per year, up to a lifetime limit of $5,000.
Eligibility:
- Must be between 25 and 65 years old.
- Must have earned at least $10,000 in the previous year.
How to Claim:
- The CRA will display your accumulated CTC amount in your Notice of Assessment.
- Claim the amount when filing your tax return.
Visit the CRA website for more information.
With the upcoming changes under the new Prime Minister, staying informed about student tax benefits is essential.
These credits can significantly reduce the financial burden of education. Always check with the Canada Revenue Agency (CRA) for the most recent updates.
