Tax season can be stressful at any age, but retirees face additional challenges. As income sources shift from jobs to pensions, government benefits, and savings, it is critical to understand what and how to claim.
Fortunately, Canada’s tax system contains a number of credits, deductions, and perks expressly designed for seniors to assist them move financially into retirement.
Numerous ways exist to lower your tax burden, including medical expenditure claims, age-related tax credits, pension income splitting, and provincial programs. However, keeping track of qualifying regulations, shifting thresholds, and required documents can be difficult, especially because new programs are introduced annually.
This blog breaks down the tax filing for retirees: special considerations for seniors, highlighting what to look for, how to claim them, and where to find the latest updates. Whether you file independently or use tax software or professional services, understanding these benefits can help you file with clarity, confidence, and peace of mind.
Are There Tax Credits for Seniors Available in Canada?
There are numerous tax credits for seniors that you may be eligible for, depending on your financial situation. We’ll highlight some of the most common ones, but remember that there may be other credits and deductions to consider when you return.
Medical Expenses
As you get older, medical costs can become a major component of your budget, and bills that haven’t already been reimbursed can be deducted as expenses on your tax return.
You can report a wide range of medical expenses, from prescriptions and doctor visits to assistive equipment like hearing aids. Air conditioning to improve the air quality in your house can be claimed as a medical expense when filing your tax return.
Visit the CRA’s website for a detailed summary of what medical costs are and are not deductible. You may need evidence for any expenses claimed, so keep your receipts and records after you file your tax return.Â
Age Amount
If you are 65 or older as of the end of the tax year, you are eligible to claim a non-refundable tax credit on your federal taxes.
The age amount for the 2025 tax filing is $8,790. Because the only requirement for this credit is to be older than a particular age, it’s one of the easiest tax breaks for Canadian seniors to claim—more on the age limit here.Â
Pension Income Amount
If you reported qualifying pension income on lines 11500, 11600, or 12900 of your tax return, you may claim a credit of up to $2,000 when filing.
Quebec citizens can claim a provincial age allowance on line 361 of their TP-1 tax return.
You may include qualified income, pension or annuity income received as payments from a pension or superannuation program, RRSP contributions, or payments for sharing your spouse’s/common-law pension.Â
Disability Tax Credit
If you or someone you know is 65 or older and disabled, you can apply for the Disability Tax Credit (DTC). This credit is meant to help people bear the higher expenditures associated with disability. The maximum disability amount in 2024 is up to $9,872.
Province-specific Tax Credits
Seniors who incurred ease-of-living or lifestyle enhancements can obtain numerous provincial tax credits this year. Your entitlement will be based on whether you reside in a province or territory.
If you are 65 or older, you can apply for the Ontario Seniors’ Public Transit Tax Credit to offset the costs of public transit fare. To be eligible for the refundable tax credit in Ontario, you must be a resident on December 31, 2025, be at least 65 years of age at the beginning of the year, and have paid for qualified public transit services in 2024. You may claim a maximum of $3,000 in public transit costs and get a maximum of $450 per year.
The Low Income Grant Supplements for Seniors are available in British Columbia for Canadians aged 65 and over, saving you money on property taxes. To receive the low-income grant supplement for seniors, you must own a property with an assessment value larger than $2,150,000 and have an adjusted net income of $32,000 or less (including your shared-income partner’s income, if any).
Quebec citizens aged 70 and over may be eligible for the Tax Credit for Seniors of Assistance, which gives up to $4,000 for couples and $2,000 for single individuals.Â
Old Age Security (OAS) Pension
The Old Age Security (OAS) pension is meant to help people aged 65 and above financially after retirement. It is normally determined by how long you have resided in Canada as an adult and is paid to you on a monthly basis by the government.
If you earn more than a specific income level ($90,997 in 2024), you may be required to repay a portion of your OAS pension to the government. This is known as the OAS Pension Recovery Tax, or OAS Clawback. The sum fluctuates from year to year.Â
How Do I Ensure I’m Not Losing Out on Any Seniors’ Tax Credits in Canada?
With new government grants, measures, and tax credits, you may feel overwhelmed by the constant flow of fresh information.
We offer many choices to meet your demands so you don’t miss out on possible deductions and claims. Our simple software asks you the appropriate questions and uses your responses to determine the credits you are eligible for, regardless of your position.
Conclusion
Filing taxes as a retiree does not have to be difficult or stressful. With the right counsel and resources, you can take full advantage of the numerous tax credits and deductions available to seniors in Canada, allowing you to protect your retirement income, lower your tax payment, and even boost your refund.
Knowing your eligibility for anything from the Age Amount and Pension Income Credit to province-specific benefits and medical expenditure claims can significantly impact..
That’s where The Tax Man Canada comes in. Whether you prefer the convenience of easy-to-use software or want the full support of a seasoned tax professional, The Tax Man Canada guarantees nothing is missed. With features like Auto-fill My Return and expert-reviewed filings, you’ll gain peace of mind and confidence that your return is accurate and optimized.
Visit The Tax Man Canada today and let our experts help you maximize your retirement income.
