Canada Students Tax Credits For 2025: Are you a student and studying in Canada? The new tax credits and deductions that will be applicable in 2025 can give you a great opportunity to reduce the cost of your education. The Government of Canada runs a variety of tax relief schemes to help students financially so that they can easily manage their education expenses.
In this article, we will discuss in detail all the student tax credits available for 2025, including the new changes, eligibility criteria, and the process to claim them.
Major Tax Credits for Students – 2025
Some of the major schemes to provide tax relief to students have been continued in 2025, while some have been changed. If you are a student in Canada, you should try to utilize these tax benefits to the maximum.
The table below summarizes the tax credits available to students in 2025:
| Tax Credit | Description | Eligibility | Official Resource |
|---|---|---|---|
| Tuition Tax Credit | A non-refundable credit that reduces income tax if you have paid tuition fees to a recognized educational institution. | Students enrolled in a post-secondary institution recognized by the government. | CRA – Tuition Amounts |
| Tax Credit for Interest Paid on Student Loans | If you have paid interest on a government student loan, you can claim this tax credit. | Students repaying loans received under federal or provincial student loan programs. | CRA – Interest on Student Loans |
| Moving Expenses Deduction | If you moved at least 40 kilometers closer to your educational institution for full-time studies, you may claim moving expenses. | Students who have relocated at least 40 km closer to their institution for full-time study. | CRA – Moving Expenses |
| Canada Training Credit (CTC) | A refundable tax credit that helps working students with training and education costs. | Canadian residents aged 25-65 who have filed a tax return, earned at least $10,000 in the previous year. | CRA – Canada Training Credit |
| Student Tax-Free Threshold | Students may not need to pay taxes if their total income falls below a certain threshold. | Students earning below $15,000 (expected for 2025). | CRA – Basic Personal Amount |
1. Tuition Tax Credit
What is it?
The tuition tax credit is one of the most important benefits, which provides students with an income tax deduction based on their tuition fees.
Who is eligible?
- Anyone who has paid tuition fees to an accredited institution.
- If the student does not use this credit, up to $5,000 of the credit can be transferred to a parent, spouse, or grandparent.
How to claim it?
- 1️⃣ Get Form T2202 from your educational institution, which will contain information about your tuition fees.
- 2️⃣ Complete Schedule 11 of your tax return.
- 3️⃣ If you have not fully used the credit, you can carry forward the remaining amount to the next years or transfer it to an eligible family member.
2. Tax credit for interest paid on student loans
What is it?
If you are paying interest on a loan obtained under the Canada Student Loans Act or a provincial plan, you can get a tax credit.
Who is eligible?
- This benefit is available only on interest paid on loans provided by the federal or provincial/territorial governments.
- Private loans or credit card loans are not included in this scheme.
How to claim?
- ✅ Keep a record of the interest payments you have made.
- ✅ Enter the total amount of interest in line 31900 of your tax return.
3. Moving Expenses Deduction
What is it?
If you have moved for your studies and your new home is at least 40 km away, you can claim a deduction for your moving expenses.
Eligible expenses:
- ✔️ Transportation expenses (truck fare, gas, flight tickets)
- ✔️ Temporary accommodation (maximum 15 days)
- ✔️ Storage and travel costs
How to claim?
- 1️⃣ Keep all receipts and documents.
- 2️⃣ Fill out Form T1-M and add its amount in line 21900.
4. Canada Training Credit (CTC)
What is it?
This is a refundable tax credit for working students aged 25-65, in which they can deposit $250 per year and get a credit of up to $5,000 for their training expenses.
Who is eligible?
- Who has earned at least $10,000 in the previous year.
- Who has an annual income below the third tax bracket.
How to claim?
✅ Eligible individuals can see their credit amount in their Notice of Assessment.
Conclusion
If you are a student, it is important for you to make full use of the tax benefits available for 2025.
- ✔️ The tuition tax credit allows you to deduct the cost of your studies.
- ✔️ The tax credit on student loan interest reduces the interest burden on your student loan.
- ✔️ The relocation expense deduction helps reduce your moving costs.
- ✔️ The Canada Training Credit lets you reap the benefits of investing in your education and training.
💡 Now is the time to claim your tax benefits! Fill out your tax return correctly and make the most of these benefits.
FAQs
Q. Are all students eligible for the tuition tax credit?
A. Yes, if you paid tuition fees at an accredited institution, you are eligible.
Q. Can I get a tax credit on my student loan interest?
A. Yes, if your loan is taken out under the federal or provincial student loan scheme.
Q. What is the student tax-free limit?
A. Students are tax-free up to an income of $15,000 in 2025.