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Tuition tax credit in Canada (2026): what it is worth, and how to transfer or carry it forward

Updated October 2026 · 9 min read · Students
The federal tuition tax credit is worth the lowest federal tax rate times your eligible tuition: 14% for 2026 and 14.5% for 2025. So $7,500 of 2026 tuition is worth $1,050 off federal tax. You must first use what you need to bring your own tax to zero, then you can transfer up to $5,000 minus what you used to a parent, grandparent or spouse, and carry the rest forward.

Most students owe little or no tax while in school, so the tuition credit often sits unused or gets claimed by the wrong person in the wrong year. Here is how it works on your return, what the transfer rules actually allow, and a calculator that splits your tuition amount between you, a family member and next year.

On this page

  1. Tuition credit split calculator
  2. What the credit is worth in 2025 and 2026
  3. Which fees count
  4. Your T2202 and other slips
  5. Transfer and carry-forward rules
  6. Worked examples
  7. Student loan interest and the Canada Training Credit
  8. Options for using your amount
  9. FAQ

Tuition credit split calculator

How should your tuition amount be split?

Federal only, for current-year tuition, and assumes no carried-forward amounts from earlier years (those must be used first). "Federal tax before this credit" means tax left after your other non-refundable credits; your tax software or Schedule 11 shows it. Provincial credits work differently and are not included. Carry-forward value uses the 2026 rate.

What the credit is worth in 2025 and 2026

The tuition credit is a non-refundable credit calculated at the lowest federal tax rate. That rate changed: CRA says it dropped from 15% to 14% on July 1, 2025, making it 14.5% for 2025, and the 2026 federal table shows 14% on the first $58,523 of taxable income.

Eligible tuition2025 value (14.5%)2026 value (14%)
$2,000$290$280
$7,500$1,087.50$1,050
$12,000$1,740$1,680

Non-refundable means it can reduce your federal tax to zero but will not pay you a refund on its own. Unused amounts carried forward from earlier years are adjusted to the current lowest rate when you use them. Some guides still quote 15%; that figure is out of date for 2025 and 2026 returns. For 2025 only, CRA added a top-up tax credit (line 34990) that keeps a 15% rate on certain non-refundable credits claimed on amounts above the first bracket threshold of $57,375; tax software applies it if it fits your situation.

Which fees count

The fees you paid to each institution must be more than $100. Eligible fees include admission fees, library or lab charges, exam fees integral to your program, application fees if you then enrol, charges for a certificate, diploma or degree, mandatory computer service fees and academic fees. Some ancillary fees like health services or athletic fees can count, but are limited to $250 unless all full-time or all part-time students must pay them.

Not eligible: student social activities, transportation and parking, board and lodging, items of lasting value like a computer, and most books. Fees paid or reimbursed by an employer that are not included in income do not count either. Fees are based on the calendar year the course was taken, not the year you paid. The federal education and textbook amounts ended in 2017, though unused amounts from before 2017 can still be carried forward.

Your T2202 and other slips

Not sure you need to file at all? If you have tuition to carry forward, you do; see do I need to file taxes on a low income.

Transfer and carry-forward rules

RuleWhat CRA says
You go firstYou must first claim this year's tuition and any carried-forward amounts to reduce your own tax, even if someone else paid your fees
Transfer limitUp to $5,000 of this year's federal tuition amount, minus the amount you used
Who can receive itYour spouse or common-law partner, your parent or grandparent, or your partner's parent or grandparent
Carry forwardWhatever you do not use or transfer carries forward, and you must claim it in the first year you owe tax
No later transfersOnce carried forward, an amount can never be transferred to anyone
File every yearIf you skip filing a year between paying the tuition and claiming it, the amount is not carried forward

To transfer, you sign the transfer section of your T2202; a parent claims it on line 32400, and a spouse uses Schedule 2. A transfer to a parent or grandparent is not allowed if your spouse or common-law partner claims certain amounts for you.

Worked examples

Maya has $7,500 of 2026 tuition and owes no federal tax because her income is low.

StepArithmeticAmount
Amount Maya must useTax owing is $0$0
Maximum transfer to her dad$5,000 − $0$5,000 (worth $5,000 × 14% = $700)
Carried forward$7,500 − $0 − $5,000$2,500 (worth $350 at 14%)

Leo also has $7,500 of tuition but owes $210 of federal tax from a summer job.

StepArithmeticAmount
Amount Leo must use$210 ÷ 14%$1,500
Maximum transfer$5,000 − $1,500$3,500 (worth $490)
Carried forward$7,500 − $1,500 − $3,500$2,500

In both cases the full $1,050 of credit is used eventually; the split decides who benefits and when. Families sometimes choose to transfer less and carry more forward to the student's first working year. That is a choice, not a rule, and the calculator shows both.

Options for using your amount

OptionWho benefitsWatch for
Use it yourself this yearYou, up to your tax owingRequired before any transfer
Transfer to a parent or grandparentThem, up to $5,000 minus what you usedCurrent-year amount only; sign the T2202
Transfer to a spouseYour partnerClaimed on Schedule 2
Carry it forwardYou, in your first year with tax owingFile every year or lose it

International students: CRA says your treatment depends on your residency status for tax purposes, and its non-resident guide lists line 32300 among the credits that can still be claimed. These are options to understand, not tax advice. More calculators, including one for first paycheque deductions, are on the tools page.

How to claim and split your tuition tax credit

  1. Download your T2202 (or TL11 form) from your school after February.
  2. Enter the eligible tuition on Schedule 11 with your tax return.
  3. Let the credit reduce your own federal tax to zero first; the calculator shows how much that takes.
  4. Decide whether to transfer up to $5,000 minus what you used to a parent, grandparent or spouse, and sign the T2202 transfer section.
  5. Let the rest carry forward and check the carry-forward amount on your notice of assessment.
  6. File a return every year so the carried-forward amount is not lost.

Questions people ask

How much is the tuition tax credit worth in Canada?

It equals the lowest federal tax rate times your eligible tuition: 14% for 2026 and 14.5% for 2025, because CRA says the rate dropped from 15% to 14% on July 1, 2025. $7,500 of 2026 tuition is worth $1,050 off federal tax.

Can I transfer my tuition credit to my parents?

Yes, part of it. After you use what you need to reduce your own tax to zero, you can transfer up to $5,000 of this year's federal tuition amount, minus what you used, to a parent or grandparent, or to your spouse or common-law partner or their parent or grandparent.

Can I transfer tuition I carried forward from past years?

No. CRA says once you carry an amount forward, you can never transfer it to anyone. Only the current year's amount can be transferred.

Does unused tuition credit expire?

It carries forward with no set expiry, but you must claim it in the first year you owe tax, and you must file a return every year. If you skip a year, CRA says the amount will not be carried forward.

What is the minimum tuition to claim the credit?

The fees paid to each institution must be more than $100.

Where do I find my tuition amount?

On your T2202 from a Canadian school, which must be given to you by the last day of February after the year. For schools outside Canada, look for a TL11A, TL11C or TL11D.

Can I claim interest on a student line of credit?

No. The line 31900 credit is only for government student loans such as Canada Student Loans and similar provincial loans. Private loans and loans combined or renegotiated with a bank do not qualify.

Can international students claim the tuition credit?

It depends on your residency status for tax purposes. CRA's guide for non-residents lists line 32300 among the federal credits that can still be claimed.

Start your working life with no money leaks

Looni reads your statements and flags bank fees, interest and subscriptions you might be paying without noticing, so your first paycheques go further. Read-only, no advice.

Sources

Canada Revenue Agency, Line 32300 Your tuition, education, and textbook amounts, Eligible tuition fees, Transferring and carrying forward amounts, Tax rates and income brackets (2026), Tax rates (2025), P105 Students and income tax (ineligible fees, ancillary fee limit, 2017 change), T2202 information return, Line 31900 Interest paid on your student loans, Line 45350 Canada training credit and Income Tax Folio S1-F2-C2. The examples are illustrative; the arithmetic is ours.

Important: General information, not tax advice. Looni is not a tax preparer. Federal amounts only; provincial rules differ. Check your own slips and return, or ask a tax professional.

Studying in Canada on a study permit? Start with taxes for international students to work out your residency status.

Applying for OSAP? Our OSAP and savings guide explains the $3,600 contribution for 2026-27 and a need estimator.