As a student in Canada, managing education costs can be challenging. Fortunately, the Canada Revenue Agency (CRA) provides several tax credits and deductions to help reduce financial burdens.
In 2025, changes may be introduced under the new Canadian Prime Minister, affecting how students claim tax benefits.
This guide covers tuition tax credits, student loan interest deductions, moving expense deductions, and the Canada Training Credit (CTC). Understanding these benefits can help you save money, reduce student debt, and manage expenses effectively.
Canada Student Tax Credits
With the right tax planning, students can maximize their returns and reduce financial stress. Here’s a breakdown of the key tax credits available in 2025:
| Tax Credit | Description | Eligibility |
|---|---|---|
| Tuition Tax Credit | Reduces income tax owed based on tuition fees paid to a recognized institution. | Must have paid eligible tuition fees to a post-secondary school in Canada or abroad. |
| Student Loan Interest Deduction | Non-refundable credit for interest paid on government student loans. | Available if loan is from Canada Student Loans Act or provincial programs (private loans don’t qualify). |
| Moving Expenses Deduction | Deducts moving costs if relocating for full-time studies. | Move must be 40 km closer to the institution. |
| Canada Training Credit (CTC) | Refundable credit for education and training costs. | Available to workers aged 25-65 earning at least $10,000 per year. |
| Student Tax-Free Threshold | Students earning below the basic personal amount ($15,000 in 2025) don’t pay taxes. | Available to any low-income student. |
1. Tuition Tax Credit
The Tuition Tax Credit is one of the most valuable non-refundable tax credits available to students.
It reduces the amount of income tax owed based on tuition fees paid to a recognized institution.
Eligibility
- Must have paid eligible tuition fees to a recognized post-secondary institution in Canada or abroad.
- If you don’t use the full credit in the current year, you can carry it forward to future years.
- You can transfer up to $5,000 of the credit to a parent, spouse, or grandparent.
How to Claim
- Obtain Form T2202 from your institution (lists eligible tuition fees).
- Complete Schedule 11 on your tax return.
- Transfer or carry forward unused amounts.
For official details, visit CRA – Tuition Amounts.
2. Student Loan Interest Deduction
If you’re repaying student loans, you may qualify for a tax credit on the interest paid. This helps reduce overall repayment costs.
Eligibility
- The loan must be from the Canada Student Loans Act or a provincial/territorial student loan program.
- Private loans or lines of credit do not qualify.
How to Claim
- Keep records of interest paid on student loans.
- Enter the interest amount on Line 31900 of your tax return.
For full details, visit CRA – Interest Paid on Student Loans.
3. Moving Expenses Deduction
If you moved for full-time studies, you may be eligible to deduct moving costs from your taxable income.
Eligibility
- Your new home must be at least 40 km closer to your school.
Deductible Expenses
- Moving costs (truck rental, gas, airfare).
- Temporary housing (up to 15 days).
- Storage and travel expenses.
How to Claim
- Keep receipts for eligible expenses.
- Complete Form T1-M (Moving Expenses).
- Report the deduction on Line 21900 of your tax return.
For official details, visit CRA – Moving Expenses.
4. Canada Training Credit (CTC)
The Canada Training Credit (CTC) is a refundable tax credit designed to help students and workers afford training and education costs.
Eligibility
- Must be aged 25 to 65.
- Must have earned at least $10,000 in the previous year.
- Must have income below the third tax bracket.
How to Claim
- Your Notice of Assessment will show your accumulated credit balance.
- Claim the credit amount on your tax return.
For full details, visit CRA – Canada Training Credit.
5. Student Tax-Free Threshold
Students earning below the basic personal amount are exempt from paying federal taxes.
Key Thresholds for 2025
- Basic personal amount: $15,000 (subject to confirmation).
- If your total annual income is below this threshold, you don’t have to pay federal tax.
For more details, visit CRA – Basic Personal Amount.
- Tuition Tax Credit: Reduces income tax owed; unused credits can be carried forward or transferred.
- Student Loan Interest Deduction: Claim interest paid on government student loans (private loans don’t qualify).
- Moving Expenses Deduction: Deduct relocation costs if moving 40 km closer for full-time studies.
- Canada Training Credit: Refundable tax credit to support job-related training.
- Student Tax-Free Threshold: Earn below $15,000 in 2025? You may not owe federal taxes.
