CRA Tax Breaks Every Canadian Student Should Know, Don’t Miss These 2025 CRA Tax Credits

Pursuing higher education in Canada can be expensive—but it doesn’t have to drain your bank account. The Canada Revenue Agency (CRA) offers a variety of student tax credits that can help ease the financial burden for students, recent graduates, and even working professionals pursuing additional training. These credits, some refundable and others non-refundable, allow you to reduce your tax bill—or even get money back.

Here’s a detailed look at the tax breaks available in 2025, who qualifies for them, and how you can make the most of your return this year.

Tuition Tax Credit: The Most Common Student Benefit

The tuition tax credit remains the most widely claimed education benefit in Canada. This is a non-refundable credit, meaning it reduces the taxes you owe but won’t result in a refund if your tax owing is already zero.

Who Qualifies?

To claim this credit, you must:

• Be enrolled in a post-secondary program at a recognized Canadian institution (or an approved international one)
• Have paid more than $100 in tuition during the year
• Receive a T2202 form from your school showing eligible fees

What’s Covered?

You can claim more than just tuition. Eligible costs also include:

• Admission and registration fees
• Lab and library charges
• Exam fees required for your program

For example, if you paid $4,000 in tuition in 2025, you can claim 15% federally, giving you a $600 tax credit.

If you can’t use all of the credit this year, you can:

• Carry forward unused amounts indefinitely
• Transfer up to $5,000 to a parent, grandparent, spouse, or common-law partner

Canada Training Credit (CTC): Cash Back for Skill Building

The Canada Training Credit is a lesser-known but valuable refundable credit aimed at Canadians investing in new skills or professional development.

Eligibility Criteria:

• Aged 26 to 65
• Earned at least $10,000 in working income the previous year
• Not in the top federal tax bracket

Every eligible taxpayer automatically earns $250 per year toward this credit, up to a lifetime maximum of $5,000. You can find your CTC balance on your Notice of Assessment from the CRA.

Let’s say you spent $750 on training in 2025 and have that much in CTC credit—you could get that entire amount refunded, even if you owe no income tax.

Student Loan Interest: A Small But Helpful Credit

Still paying off your student loans? You can claim a non-refundable credit for the interest paid on eligible government-issued student loans.

Key Points:

• Only interest is claimable—not the principal
• The loan must be from a recognized federal or provincial program
• Bank loans or lines of credit do not qualify
• Claim on Line 31900 of your return
• If unused, the credit can be carried forward for up to 5 years

Moving Expenses: Support for Long-Distance Relocations

If you moved at least 40 km closer to your school or a co-op placement, you might be able to deduct certain moving expenses.

Eligible Deductions Include:

• Travel costs (fuel, public transport, airfare)
• Temporary accommodations (up to 15 days)
• Meal expenses while relocating
• Storage fees and moving truck rentals

To claim this, you’ll need to complete Form T1-M and keep all supporting receipts. This benefit is especially helpful for students moving across provinces for education or internships.

Basic Personal Amount: Threshold for Federal Tax

In 2025, the basic personal amount is $15,000. If your income falls below this, you may not owe any federal tax—but it’s still essential to file your return.

Why? Because filing allows you to:

• Access GST/HST quarterly credits
• Claim or carry forward tuition and other credits
• Qualify for provincial student benefits

Skipping your tax return could mean missing out on thousands in credits and payments.

Additional Federal and Provincial Benefits

Beyond tuition and training, there are other tax-related perks available to students, often depending on where you live.

Federal:

• GST/HST Credit: Paid quarterly to low- or modest-income Canadians, including many students. Filing is mandatory to receive this benefit.

Provincial Examples:

Province	Additional Benefits
Ontario	Ontario Tuition Grant (via OSAP)
British Columbia	BC Training and Education Savings Grant
Quebec	Deduction for tuition and education expenses

Make sure to check with your provincial government to see what additional supports are available in 2025.

Why Filing Your Return Is Crucial—Even If You Earned Nothing

Many students assume they don’t need to file a tax return if they didn’t earn income. But doing so unlocks:

• CRA benefits like GST/HST credits
• Your right to claim tuition, moving, and loan interest credits
• Access to future tax refunds

Filing also ensures the CRA has updated information for benefit eligibility and allows you to build up refundable credits like the Canada Training Credit.

FAQs

Q1. What is the T2202 form?
The T2202 is an official tax form issued by your educational institution, summarizing eligible tuition fees paid in a given year.

Q2. Can tuition credits be transferred?
Yes. Up to $5,000 in tuition credits can be transferred to a parent, grandparent, spouse, or common-law partner if you don’t need them yourself.

Q3. What counts as moving expenses for students?
If you moved at least 40 km closer to attend school, you can claim costs like travel, meals, storage, and temporary lodging.

Q4. Is student loan interest refundable?
No. It’s a non-refundable credit, but it still helps by reducing your tax owed—and it can be carried forward for five years.

Q5. Who is eligible for the Canada Training Credit?
Canadians aged 26 to 65, earning $10,000+ annually, and not in the highest tax bracket automatically accumulate $250 per year toward this credit.