Getting higher education in Canada is a big investment, and the financial challenges associated with it for students are also not hidden from anyone. But the good thing is that with the help of tax credits available to students in 2025, this burden can be reduced to a great extent. If you are studying in Canada, then this information can be very useful for you. In this article, we will explain in detail which tax credits you can get the benefit of, what is their eligibility, and how you can claim them.
Tax Credits: A Financial Lifeline for Students in 2025
For Canadian students, 2025 brings a renewed opportunity to save money through a range of education-focused tax credits. Whether you’re paying tuition, repaying student loans, or covering relocation costs, the government offers several ways to ease your financial burden.
To claim these benefits, you’ll need to file your taxes on time, retain critical documents like the T2202 form, and understand which credits apply to you.
Tuition Tax Credit: The Core Student Benefit
This non-refundable tax credit allows students to reduce the amount of income tax owed, though it does not result in a cash refund.
Eligibility Requirements:
- Enrolled at a recognized post-secondary institution
- Paid tuition of at least $100 in the calendar year
What You Can Claim:
- Tuition fees
- Admission fees
- Library or lab fees
- Registration fees
Example:
If you paid $4,000 in tuition, you can claim 15% as a tax credit, resulting in $600 off your taxes. You’ll need a T2202 form from your institution to process the claim.
Canada Training Credit (CTC): A Refund You Can Pocket
Unlike the tuition tax credit, the Canada Training Credit (CTC) is refundable, meaning you can receive it as a cash payment even if you owe no taxes.
Eligibility:
- Aged 26 to 65
- Earned at least $10,000 annually
- Not in the highest federal tax bracket
Benefit:
- Earn $250 in credits each year
- Can accumulate up to $5,000 in total over time
You can claim eligible training or course fees using the CRA Notice of Assessment, which tracks your CTC balance.
Student Loan Interest Credit: Claim What You’ve Paid
If you’re paying off a federal or provincial government-issued student loan, you can claim the interest paid as a non-refundable tax credit.
Key Notes:
- Only government loans qualify—private or bank loans don’t
- You can carry forward interest for up to five years
How to Claim:
Report the interest amount on Line 31900 of your tax return.
Moving Expense Deduction: For Students Who Relocate
If you moved 40 kilometers or more to attend school or a co-op placement, you can deduct moving expenses from your taxable income.
Eligible Expenses Include:
- Travel costs (fuel, public transport, airfare)
- Moving company fees
- Temporary lodging (up to 15 days)
- Meal costs during the move
How to Claim:
Use Form T1-M, and ensure you keep all receipts.
Basic Personal Amount: Tax-Free Threshold for Students
In 2025, Canadians do not pay federal income tax on the first $15,000 of income. While you may not owe any tax if you earn below this threshold, it’s still important to file a tax return.
Why File?
- To claim GST/HST credits
- To access provincial student benefits
- To carry forward tuition credits for future use
- To qualify for other government programs
GST/HST Credit
Low-income students can receive quarterly payments to help offset sales tax expenses.
Provincial Programs
Some provinces like Ontario and British Columbia offer additional tax credits, grants, or education subsidies on top of federal benefits.
Checklist: What You Need to Claim Student Tax Benefits
Before filing your taxes, make sure you have:
- T2202 tuition form from your school
- Loan interest statements (if repaying loans)
- Receipts for moving expenses
- Proof of training course fees (for CTC claims)
- Your CRA Notice of Assessment (to track unused credits)
Conclusion: Use Every Tax Credit to Your Advantage
Canada’s 2025 student tax credit system is designed to ease the burden of rising education costs. From tuition credits to training refunds, these programs can save you hundreds to thousands of dollars if used wisely.
By filing your taxes properly, organizing your documents, and staying informed, you can turn your tax return into a powerful financial tool. If you’re unsure about any detail, don’t hesitate to consult a tax expert or the CRA—doing so could significantly impact your financial future.
FAQs on Student Tax Credits in Canada 2025
Q1. Who qualifies for the Tuition Tax Credit?
A: Any student enrolled in a post-secondary program with tuition fees exceeding $100 per year.
Q2. Can I claim private student loan interest?
A: No. Only federal or provincial government-issued student loan interest is eligible.
Q3. What is the Canada Training Credit (CTC)?
A: A refundable tax credit for Canadians aged 26–65, allowing up to $250 per year for eligible training expenses.
Q4. Are moving expenses tax-deductible for students?
A: Yes, if you moved 40km or more to attend school or a co-op placement, you can claim eligible moving costs.
Q5. Do I need to file taxes if I earn less than $15,000?
A: Yes. Filing helps you claim GST/HST credits, provincial benefits, and tuition carryforwards.