NON-REFUNDABLE CREDITS

A non-refundable tax credit reduces income tax payable but cannot create a refund. Each credit starts as a dollar "amount" (for example the $16,452 basic personal amount), and the total of the amounts on line 35000 is multiplied by the lowest federal rate, 14 percent for 2026 (14.5 percent for 2025). Provinces run a parallel system on their own forms, using their own amounts and their lowest rate (5.05 percent in Ontario). Unused credits are generally lost, except where specific carry-forward or transfer rules apply.

WHY CREDITS WORK DIFFERENTLY FROM DEDUCTIONS

• Every taxpayer gets the same rate of relief, regardless of income, which makes credits more progressive than deductions.

• If tax is already zero, extra credits have no value, so low-income taxpayers often cannot use them fully.

• Some credits can be transferred to a spouse, parent or grandparent; some can be carried forward to future years.

TRANSFER AND CARRY-FORWARD SUMMARY

• Transferable to a spouse or partner (line 32600): age amount, pension income amount, disability amount, Canada caregiver amount for children, and up to $5,000 of current-year tuition.

• Transferable to a parent or grandparent: up to $5,000 of tuition, and the disability amount of a dependant.

• Carry forward: tuition (indefinitely), student loan interest (five years), donations (five years).

• Flexible claimant: medical expenses and donations can be pooled and claimed by either spouse.

PAGES IN THIS SECTION

• Basic Personal Amount

• Age and Pension Income Amounts

• Spouse and Dependant Amounts

• Canada Caregiver Amount

• CPP, EI and Canada Employment Amounts

• Tuition and Student Loan Interest

• Medical Expenses

• Disability Tax Credit

• Charitable Donations

• Home Buyers and Home Accessibility

• Top-Up Tax Credit

• Dividend Tax Credit

• Other Non-Refundable Credits