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19 Popular Canadian Tax Deductions & Credits

Maximize your refund with this comprehensive guide to deductions and credits recognized by the CRA.

The Canada Revenue Agency (CRA) recognizes over 400 tax deductions and credits. Knowing which ones apply to you can significantly reduce your tax bill or increase your refund. Tax deductions lower your taxable income, while tax credits directly reduce the amount of tax you owe.

1

Key Refundable Credits

Refundable credits can result in a payment even if you owe no tax.

GST/HST Credit: Offsets sales tax for low to modest-income Canadians.
Canada Workers Benefit (CWB): Supplements income for low-income workers.
Canada Child Benefit (CCB): Tax-free monthly payment for raising children.
2

Common Non-Refundable Credits

These reduce your tax payable to zero but do not result in a refund of the excess.

Basic Personal Amount: Every Canadian can claim this to reduce their taxable income.
Tuition Tax Credit: For eligible post-secondary education fees.
Medical Expenses: For costs exceeding 3% of your net income.
Home Buyers' Amount (HBA): Up to $1,500 for first-time home buyers.
3

Essential Deductions

Deductions lower the total income you are taxed on.

RRSP Contributions: Directly reduce your taxable income.
Child Care Expenses: For costs incurred to work or study.
Moving Expenses: If you moved at least 40km closer to work or school.
First Home Savings Account (FHSA): Tax-free savings for your first home.

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All TaxBuddy resources are reviewed by Canadian Chartered Professional Accountants to ensure accuracy with current CRA regulations.

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