Here are tax incentives Canadian students should take advantage of this year

Canadian students have many expenses to worry about, but thankfully, there are tax incentives that can help ease their financial homework.

From tuition to housing to food costs, students in Canada have a lot to balance alongside their readings.

The Canada Revenue Agency (CRA) has shared a list of tax credits and benefits Canadian students can take advantage of.

“Life can be expensive, but benefit and credit payments, along with tax credits and deductions, can help,” said the agency.

Whether you’re a Canadian or international student, here are ways to maximize your money through tax incentives.

Tax-free payments

GST/HST Credit

The goods and services tax/harmonized sales tax (GST/HST) credit is a tax-free quarterly payment that can help eligible people get up to $533 a year.

According to the government, this credit aims to help families with low and modest incomes offset the taxes they pay.

The government says you’re generally eligible for the payment if you’re at least 19 years old and a Canadian resident for income tax purposes a month before the Canada Revenue Agency (CRA) makes the payment and at the beginning of the month.

The first GST payment of the year was sent on January 3. The next is April 4.

Canada Carbon Rebate

The CCR (previously known as the Climate Action Incentive Plan) is a tax-free quarterly payment to help eligible individuals and families offset the cost of federal pollution pricing.

It comprises a basic rebate and a supplement for residents in small and rural communities.

Canadians in Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, and Saskatchewan can receive the federal carbon tax rebate.

A family of four may receive the following quarterly payment amounts:

• $450 in Alberta
• $300 in Manitoba
• $280 in Ontario
• $376 in Saskatchewan
• $190 in New Brunswick
• $206 in Nova Scotia
• $220 in Prince Edward Island
• $298 in Newfoundland and Labrador

The amount you receive also depends on whether you qualify for a rural supplement, have a spouse or common-law partner, and whether you have children. Check out how you can calculate your carbon tax rebate.

The first payment of the year was on January 15. The next payment is on April 15.

Canada Child Benefit

The CCB is a monthly payment made to eligible families that can help them with the cost of raising children under 18.

The new benefit year for the child tax payments began in July 2024. It increased by 4.7 per cent, meaning the maximum benefit for children under six increased by $350, from $7,437 to $7,787. For children aged six to 17, it increased by $295, from $6,275 to $6,570.

Another increase is expected in July 2025, when the next benefit year begins. Families eligible for the benefit will receive their first payment of the year next week.

The next CCB payment is on February 20.

Tax credits students could claim if eligible

Disability Tax Credit

The DTC is a non-refundable tax credit that helps people with disabilities reduce the amount of income tax they have to pay.

Eligible individuals could get up to $9,872 and those who are under 18 may also be eligible for an additional $5,758.

Tuition Tax Credit

Canadian students can reduce the taxes they owe by claiming tuition amounts. The CRA says you may be able to transfer or carry forward unused amounts.

Interest paid on student loans

You might be able to claim a non-refundable tax credit for the interest you pay on your government student loans each year.

Moving expenses

If you got accepted to a school and had to move at least 40 km closer, you may be able to deduct all your moving costs from your taxes.

Yes, that means you could claim the costs of flights, movers, selling real estate, getting out of a lease or mortgage, and temporary housing — which can add up to a lot.

International students

If you’re an international student wondering if you can claim any of these tax benefits, credits or deductions, the CRA says you can.

“The CRA considers you a newcomer to Canada for the first year you are a resident of Canada,” reads the agency’s site. “You become a resident of Canada for income tax purposes when you have enough residential ties in Canada. You usually establish residential ties on the day you arrive in Canada.”

All you need is a social insurance number to be able to apply for any tax incentives you might be eligible for.

Check out which benefits and credits international students can take advantage of.