Canada Student Tax Credits 2025- What to Expect Under the New Prime Minister
The Canadian government offers a variety of tax credits and deductions to help students reduce their financial burdens.
With recent changes introduced by the new Canadian Prime Minister in 2025, students must stay informed about the benefits available to them.
This guide highlights the key student tax credits in Canada for 2025, including updated information on eligibility, how to claim them, and other important considerations.
Key Tax Credits for Students in Canada in 2025
The Canadian government’s tax credits are designed to help students manage educational expenses more effectively.
From tuition fees and loan interest deductions to allowances for moving expenses, these tax breaks aim to reduce the financial strain on students.
To maximize your benefits, it is crucial to file your tax return on time and claim the applicable credits.
Make sure to refer to the Canada Revenue Agency (CRA) for the most current information.
| Tax Credit | Description | Eligibility | Official Resource |
|---|---|---|---|
| Tuition Tax Credit | A non-refundable credit to reduce the income tax owed based on eligible tuition fees paid. | Students who paid tuition to a designated educational institution for post-secondary or occupational skills courses. | Canada Revenue Agency – Tuition Amounts |
| Interest Paid on Student Loans | A non-refundable credit for the interest paid on government student loans. | Individuals who made payments on loans from federal or provincial/territorial programs. | Canada Revenue Agency – Interest Paid on Your Student Loans |
| Moving Expenses Deduction | Allows deduction of moving expenses if students relocate for full-time studies. | Full-time students who moved at least 40 km closer to their institution. | Canada Revenue Agency – Moving Expenses |
| Canada Training Credit (CTC) | A refundable tax credit for training costs, offering $250 annually into a notional account, up to a lifetime limit of $5,000, to be used for eligible fees. | Canadian residents aged 25 to 65 who filed a tax return and earned at least $10,000, with income below the third tax bracket. | Canada Revenue Agency – Canada Training Credit |
| Student Tax-Free Threshold | Students with income below a certain threshold may not owe taxes. | Students earning below the basic personal amount ($15,000 for 2025, subject to confirmation). | Canada Revenue Agency – Basic Personal Amount |
1. Tuition Tax Credit
The Tuition Tax Credit is a valuable benefit for students, allowing them to lower their income tax burden based on tuition fees paid to eligible institutions.
Eligibility
- Must have paid tuition fees to a recognized post-secondary institution.
- Can be transferred to a parent, spouse, or grandparent if the student does not use the full amount.
How to Claim
- Obtain Form T2202 from your institution (it details eligible tuition fees).
- Complete Schedule 11 on your tax return.
- If not using the full credit, transfer or carry forward unused amounts.
For more information, visit the Canada Revenue Agency Tuition Amounts page.
2. Interest Paid on Student Loans
Students repaying government student loans can qualify for a tax credit on the interest paid.
Eligibility
- The loan must be obtained through federal or provincial/territorial programs.
- Private loans do not qualify.
How to Claim
- Keep a record of the interest paid.
- Enter the total amount on Line 31900 of your tax return.
Learn more at the Canada Revenue Agency Interest Paid on Your Student Loans page.
3. Moving Expenses Deduction
Students who relocated to study full-time at a post-secondary institution can deduct certain moving expenses.
Eligibility
- Must have moved at least 40 km closer to your educational institution.
Deductible Expenses
- Moving transportation costs (e.g., truck rental, gas).
- Temporary accommodation expenses (up to 15 days).
- Storage and travel costs.
How to Claim
- Keep all receipts for eligible moving expenses.
- Complete Form T1-M and transfer the amount to Line 21900.
For more details, refer to the Canada Revenue Agency Moving Expenses page.
4. Canada Training Credit (CTC)
The Canada Training Credit helps working students afford new training and educational opportunities.
Eligibility
- Must be between 25 and 65 years old.
- Must have earned at least $10,000 in the previous year.
How to Claim
- Eligible individuals will find their accumulated credit in their Notice of Assessment.
For more information, visit the Canada Revenue Agency Canada Training Credit page.
Understanding and utilizing available tax credits is crucial for Canadian students in 2025.
Whether it’s reducing tuition fees, claiming loan interest deductions, or receiving support for educational training, these credits can make a significant difference in managing your finances.
Always stay informed through official channels like the Canada Revenue Agency and file your tax returns accurately to maximize your benefits.
FAQs
What is the Tuition Tax Credit, and how does it help students?
The Tuition Tax Credit reduces the amount of income tax owed by students based on the tuition fees paid to an eligible educational institution. This non-refundable credit can help students reduce their tax burden significantly. Additionally, unused credits can be transferred to family members or carried forward to future years.
Can I claim moving expenses if I moved for my education?
Yes, you can claim moving expenses if you relocated to study full-time at a post-secondary institution and moved at least 40 kilometers closer to your school. Eligible moving expenses include transportation costs, temporary accommodation, and storage fees.
How can I claim the Canada Training Credit?
To claim the Canada Training Credit, you need to be between 25 and 65 years old and have earned at least $10,000 in the previous year. The amount you have accumulated will be displayed in your Notice of Assessment, and you can claim it on your tax return.