PERSONAL SUPPORT WORKER TAX CREDIT

The Personal Support Workers Tax Credit (PSWTC) is a new temporary refundable credit announced in Budget 2025 for the 2026 to 2030 taxation years. It recognises the work of personal support workers (PSWs) in hospitals, long-term care homes and home care.

AMOUNT

• 5 percent of eligible remuneration, up to a maximum credit of $1,100 per year.

• The maximum is reached at $22,000 of eligible earnings.

ELIGIBILITY

• Employed as a personal support worker by an eligible health care establishment, such as a hospital, nursing care facility or home health care service.

• Primary duties are to provide one-on-one care and support to patients with activities of daily living and mobility.

• Excludes earnings for work performed in British Columbia, Newfoundland and Labrador and the Northwest Territories, which have separate bilateral agreements with the federal government to raise PSW wages.

HOW TO CLAIM

• The employer certifies the eligible earnings in a new "other information" code on the T4 slip.

• The worker must file a return to receive the credit.

• If an employer refuses to certify eligible earnings, the worker can contact the CRA, which may require an amended T4.

• The credit can be claimed in the year of death.