School Tax Deductions: What You Can Claim on Income Tax

The fall often brings high expenses. Back-to-school costs add up quickly, especially for students heading to college, university or trade school. The good news is that several of those costs can reduce your tax bill or provide valuable credits. This student tax guide explains key tax claims—tuition credits, transfers, the Canada Training Credit, disability supports, RESP rules, grants and loans—so students and their supporters can maximize benefits and keep more of their money.

Income Tax Guide for Canadians

Deadlines, tax tips and more

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The tuition tax credit

Students can claim the federal tuition tax credit, a non-refundable credit that reduces federal tax by 15% of eligible tuition paid. Provincial tax systems add their own credits or education amounts, so the combined tax benefit will vary depending on your province of residence. Several provinces also maintain dedicated education amounts—examples include British Columbia (5.06%), Nunavut (4%), Northwest Territories (5.9%), Nova Scotia (8.79%), Newfoundland and Labrador (8.7%) and Prince Edward Island (9.8%). These provincial credits can further lower your tax owing.

Tuition transfer to parents or other supporters

If a student does not need the tuition credit to eliminate their own taxable income, unused tuition amounts may be transferred to a spouse or another supporting individual, up to a specified maximum (commonly $5,000). If there is no one to transfer to, or the student prefers not to transfer, unused tuition can generally be carried forward for use in a later year. The practical result is that students and their families can often realize a combined tax benefit equal to roughly one-quarter of eligible tuition, depending on provincial rates—though the benefit is only useful if there is taxable income to offset.

What is the Canada Training Credit?

The Canada Training Credit (CTC) is a federal program that builds an annual notional credit for eligible tuition and fees paid for occupational, trade or professional training delivered by qualifying Canadian institutions. Each year you file a tax return, your CTC balance can grow (by a recent incremental amount), up to a lifetime maximum. When you take eligible training, you may claim a refundable credit equal to the lesser of one-half of eligible tuition paid and your available CTC balance, while still retaining the ability to claim a portion of the tuition tax credit if needed. To earn and use the CTC you must meet age and income thresholds and file a tax return—filing is how the entitlement accumulates.

Income criteria	2024	2023	2022	2021	2020
Minimum working income	$11,511	$10,994	$10,342	$10,100	$10,000
Maximum net income from prior year	$165,430	$144,625	$151,978	$150,473	$147,667
Accumulated CTC balance	$1250	$1000	$750	$500	$250

Using the disability supports deduction

From the 2024 tax year, the disability supports deduction has been expanded to cover more qualifying expenses. If a student has a prolonged physical or mental impairment and incurs costs that enable them to work, study or access education, these expenses may be deductible against taxable employment income, self-employment income, scholarships, fellowships, research grants and other qualifying income. The deduction cannot be shared with a supporting person, and expenses claimed under this deduction cannot also be claimed as medical expenses.

New eligible items for 2024 include:

For severe, prolonged impairment in physical function: ergonomic chairs (and related assessment costs), bed-positioning devices (and assessments) and mobile computer carts.
For impairments in physical or mental function: alternative computer input devices and digital pen devices.

The list also now explicitly includes navigation devices for people with vision impairment and memory or organizational aids for those with memory impairment. Keep receipts and documentation, and consult guidance to confirm whether a specific item qualifies.

Other tax assistance students may claim

Students and their supporters can access a range of additional tax relief and deductions that may reduce taxable income or increase refundable credits.

Scholarship exemptions: Certain scholarships, bursaries and grants are partly or fully exempt from tax depending on whether the recipient is a full-time or part-time student and on the type of award.
Research grants: Researchers can deduct eligible research expenses—travel, assistants, required equipment or lab fees—up to the amount of the grant for tax purposes.
Moving expenses: Full-time students who relocate at least 40 kilometres closer to their educational institution to pursue studies may claim moving expenses if they have taxable income at the new location from scholarships, employment or similar sources.
Child-care expenses: Claiming child-care costs reduces net income, which may increase eligibility for refundable credits such as the GST/HST credit, Canada Child Benefit or Ontario/other provincial benefits. For couples, the higher-income partner typically claims these expenses unless the student qualifies differently.
Medical expenses: A wide range of medical costs may be claimed, including service animals, certain tutoring services approved by a medical practitioner, private insurance premiums, eyeglasses, prescriptions and other eligible items. Retain receipts and verification for any medical-related claims.

How are RESP withdrawals taxed?

Withdrawals from a Registered Education Savings Plan (RESP) are intended to pay for post-secondary education, but Canada Education Savings Plan (CESP) growth and government grant portions can be taxable to the student when withdrawn. Current rules allow full-time students to withdraw up to $8,000 in the first 13 consecutive weeks of enrolment, and part-time students up to $4,000 in that same initial period. After the initial window the limits change depending on the plan and whether the beneficiary takes a continuous break from studies, with some reinstatement rules if a 12-month break occurs. Additionally, both full- and part-time students may receive payments for up to six months after the end of studies if the expenses would have qualified during enrolment. Plan rules and tax outcomes differ, so review your RESP documents and tax guidance before withdrawing.

Are grants and student loans taxed in Canada?

Many grants are not taxable, and recent changes have increased support for low-income students. For example, Canada Student Grants have been increased to higher amounts for full-time and part-time students in recent years. In addition, interest-free Canada Student Loans have been adjusted in weekly amounts to reduce carrying costs for borrowers. Students should still plan for repayment obligations once they leave school and factor loans into long-term budgets.

Student loan forgiveness in Canada

Loan forgiveness programs have been expanded to cover a broader range of health-care and social-service professions that work in remote or underserved areas. Programs targeting doctors and nurses now include additional professionals such as dentists, dental hygienists, pharmacists, midwives, teachers, social workers, personal support workers, physiotherapists and psychologists, depending on program criteria and location. Eligibility rules vary; verify the specific requirements for each forgiveness or repayment assistance program.

Saving taxes on student expenses

Filing a tax return promptly is one of the best ways for students and their supporters to capture refundable credits, optimize tuition claims and preserve entitlements like the Canada Training Credit. Filing also preserves future opportunities: carrying forward unused tuition, performing transfers to supporting individuals and qualifying for refundable credits (for example, the GST/HST credit or provincial rebates) all depend on accurate, timely tax filings.

Filing returns early in a student’s working life also helps build contribution room for programs such as the Registered Retirement Savings Plan (RRSP) based on earned income. Strategic RRSP use later in life can support tax planning, including potential tuition transfers to supporting persons and greater access to refundable credits.

Investing in education often yields long-term returns. Taking full advantage of available tax credits, deductions and benefits improves the net return on that investment and eases the short-term financial burden of post-secondary education.