The Canadian tax system offers various tax credits and deductions to ease the financial burden on students. With changes implemented in 2025 under the new Canadian Prime Minister, staying informed about available benefits is crucial.
Taking advantage of these credits can help reduce student loans, lower educational expenses, and save money.
This guide outlines all the Canada student tax credits for 2025, including new updates, eligibility criteria, and how to claim them.
Canada Student Tax Credits 2025: What’s New?
With modifications to student tax credits in Canada for 2025, students should be aware of ways to maximize their savings.
From tuition tax credits to loan interest deductions and moving expense claims, these provisions help reduce the overall cost of education.
Filing a tax return and utilizing available credits is essential to benefit from these programs. For the most recent updates, refer to the Canada Revenue Agency (CRA).
Overview of Student Tax Credits in Canada 2025
Below is a comprehensive table outlining the key student tax credits available in Canada for 2025:
| Tax Credit | Description | Eligibility | Official Resource |
|---|---|---|---|
| Tuition Tax Credit | A non-refundable credit that lowers income tax based on tuition fees paid. | Students paying tuition fees to recognized post-secondary or occupational programs. | CRA – Tuition Amounts |
| Interest on Student Loans | Non-refundable credit for interest paid on government student loans. | Those making payments on loans from federal or provincial/territorial programs. | CRA – Interest Paid on Student Loans |
| Moving Expenses Deduction | Allows deductions if a student moves 40 km closer to their institution. | Full-time students moving at least 40 km closer to their school. | CRA – Moving Expenses |
| Canada Training Credit (CTC) | Refundable credit accumulating $250 per year, up to $5,000 lifetime. | Canadians aged 25-65 earning at least $10,000 annually with lower income. | CRA – Canada Training Credit |
| Student Tax-Free Threshold | Students earning below a set limit may not owe taxes. | Any student earning below $15,000 in 2025 (subject to updates). | CRA – Basic Personal Amount |
1. Tuition Tax Credit
One of the most valuable benefits for students is the Tuition Tax Credit, which reduces taxable income based on tuition fees paid to a recognized institution.
Eligibility
- Students who have paid tuition fees to a post-secondary institution in Canada or an eligible foreign university.
- Unused tuition credits can be carried forward or transferred (up to $5,000) to a parent, spouse, or grandparent.
How to Claim
- Obtain Form T2202 from your institution, listing eligible tuition fees.
- Fill out Schedule 11 on your tax return.
- Carry forward unused credits or transfer them to an eligible relative.
- Refer to the Canada Revenue Agency – Tuition Amounts page for details.
2. Interest on Student Loans
Students repaying their government student loans can claim a tax credit for the interest paid.
Eligibility
- The loan must be from the Canada Student Loans Act or a provincial/territorial program.
- Private loans or lines of credit do not qualify.
How to Claim
- Keep records of interest payments on student loans.
- Enter the total interest amount on Line 31900 of your tax return.
- For more details, visit Canada Revenue Agency – Interest Paid on Student Loans.
3. Moving Expenses Deduction
Students who relocate for full-time studies may deduct moving expenses from their taxable income.
Eligibility
- The new residence must be at least 40 km closer to the educational institution.
Deductible Expenses
- Transportation costs (rental trucks, gas, airfare).
- Temporary accommodation (up to 15 days).
- Storage and travel costs related to the move.
How to Claim
- Keep receipts for all eligible moving expenses.
- Fill out Form T1-M, and report the amount on Line 21900.
- Visit Canada Revenue Agency – Moving Expenses for further guidance.
4. Canada Training Credit (CTC)
The Canada Training Credit (CTC) helps Canadians afford job training and education.
Eligibility
- Must be between 25 and 65 years old.
- Must have earned at least $10,000 in the previous year.
How to Claim
- Eligible students will find their accumulated credit in their Notice of Assessment.
- Use it towards eligible tuition and training fees.
For Canadian students, tax credits provide essential financial relief, making education more affordable. Whether you’re claiming tuition credits, loan interest deductions, or moving expense deductions, understanding these benefits helps reduce overall costs.
To ensure you receive the maximum benefit, always keep proper records, file tax returns on time, and consult the CRA for updates. By utilizing these tax credits, students can better manage their education expenses and focus on their academic success.
FAQs
Can international students claim these tax credits?
No, most student tax credits are available only to Canadian residents. However, some foreign students studying at a recognized institution may qualify.
Can I transfer unused tuition credits?
Yes, up to $5,000 in unused tuition credits can be transferred to a parent, grandparent, or spouse.
Do student grants or scholarships affect eligibility for tax credits?
No, scholarships and grants are generally tax-free in Canada and do not affect tax credit eligibility.
How do I check my eligibility for the Canada Training Credit?
You can verify your eligibility in your Notice of Assessment provided by the Canada Revenue Agency (CRA).