Karen Minn
Paying for post‑secondary education in 2025 is a major investment—but the Canada Revenue Agency (CRA) offers several student tax credits to help ease the financial load.
From tuition credits to moving deductions, smart tax planning can film your return and boost your financial well‑being. Let’s explore what’s on offer, who qualifies, and exactly how you can maximize savings this tax season.
Tuition Tax Credit
The Tuition Tax Credit is the most familiar. It reduces your federal tax payable (but not refundable).
To apply:
- Be enrolled in Canada or qualifying foreign institution;
- Pay at least $100 in tuition in 2025;
- Have received a T2202 form from your school.
If you paid $4,000 in tuition, you can claim 15% × $4,000 = $600.
Unused amounts can be carried forward indefinitely or transferred up to $5,000 to a parent, spouse, or grandparent.
Canada Training Credit (CTC)
The Canada Training Credit is refundable, meaning you can receive a cash refund even with no tax owing.
Eligible individuals aged 26–65 who earned more than $10,000 last year receive $250/year, up to a $5,000 lifetime limit.
Claim your credit based on notice of assessment. If you spent $750 on eligible training, you can get a full refund, assuming enough credit is available.
Student Loan Interest Tax Credit
Interest paid on federal or provincial student loans in the past five years can be claimed as a non-refundable tax credit.
Only the interest, not the principal, qualifies. Enter on Line 31900.
A tax owing of $600 could be reduced by 15% × interest paid.
Unused interest can be carried forward up to five years if no tax is owed.
Moving Expense Deduction
Did you move 40 km closer to school or a co-op job in 2025?
You may deduct expenses such as:
- Travel (gas, public transport, flights)
- Up to 15 days of temporary housing
- Meals while relocating
- Moving truck rental and storage costs
Keep receipts and complete Form T1-M to claim these expenses before calculating taxable income.
Why You Should Still File if You Earn Little
The basic personal amount in 2025 is $15,000, so many students pay no federal tax. But filing returns can bring key benefits:
- Access to the GST/HST Credit;
- Preserve tuition & training credits for future use;
- Gain provincial tax credits based on residence.
Provincial Tax Credits
Depending on your province of residence, you may be eligible for extra provincial benefits:
- Ontario: Ontario Tuition Grant (via OSAP)
- British Columbia: BC Training & Education Savings Grant
- Quebec: Tuition and education expense deduction
Check your provincial tax forms or CRA guide for details.
| Credit Type | Non-/Refundable | Who Qualifies |
|---|---|---|
| Tuition Tax Credit | Non‑refundable | Enrolled students; tuition > $100; T2202 form required |
| Canada Training Credit (CTC) | Refundable | Ages 26–65, earned > $10,000 last year, not top bracket |
| Student Loan Interest Credit | Non‑refundable | Interest paid in past 5 years on government student loans |
| Moving Expense Deduction | Deduction (pre-tax) | Moved 40 km+ for full-time school or placement |
| GST/HST Credit | Refundable payments | Low‑income students who file tax returns |
| Provincial Credits | Varies | Depends on province (e.g., Ontario, BC, Quebec) |
How to Maximize Your Benefits
- Collect all T2202 forms: from every institution or semester attended.
- Check your CTC limit on your Notice of Assessment—apply if you took qualifying training.
- Track student loan interest: gather statements spanning the last 5 years.
- Document moving expenses: save ineligible-to-taxi receipts and fill out T1-M.
- Submit your tax return even with low income: secure GST/HST and provincial credits.
- Transfer what you don’t use: tuition credits can benefit family if not needed by you.
The 2025 student tax credit landscape offers powerful tools to help manage the cost of education. While your tuition credit lowers taxes owed, the CTC could even put money directly in your pocket. Additionals like student loan interest relief, moving cost deductions, and provincial grants can all add up.
The key: organize your documents, apply carefully, and file on time. Whether you’re starting a degree, upgrading skills, or repaying loans, Canada’s student tax strategies can make a real difference in your financial journey.
FAQs
Can I transfer unused tuition credits to family?
Yes! You can transfer up to $5,000 in credits per year to a parent, grandparent, spouse, or common-law partner.
Is the Canada Training Credit refundable?
Absolutely. If you have a CTC balance and claim $750 in course fees, you can receive that in cash—even if you don’t owe taxes.
I moved for a co-op, can I claim moving expenses?
Yes—if your new school or job is at least 40 km closer. Be sure to keep travel, housing, and truck rental receipts to claim via Form T1-M.