Annie
Tax season in 2025 brings welcome news for seniors. The Age Amount Tax Credit is a non-refundable federal tax credit worth up to $8,396 for eligible Canadians aged 65 and older.
Designed to ease the financial burden on aging citizens, this credit can significantly reduce how much tax you owe.
In this guide, we break down who qualifies, how to calculate your amount, and how to claim it correctly on your 2025 return.
What is the Age Amount Tax Credit?
The Age Amount Tax Credit is a non-refundable federal credit that helps older Canadians lower their tax bill.
You won’t receive cash back if you owe nothing, but you can reduce your payable tax based on your net income.
For 2025, the maximum credit available is $8,396. However, the credit decreases gradually once your income crosses $44,325, and disappears entirely if your net income exceeds $102,925.
Eligibility Criteria
To be eligible for this credit in 2025, you must:
- Be 65 years or older by July 31, 2025
- Be a Canadian resident for tax purposes
- Have a net income below $102,925 (reported on line 23600 of your tax return)
Credit Phase-Out Based on Income
| Net Income (2025) | Credit Value |
|---|---|
| $44,325 or less | Full $8,396 |
| $44,326 – $102,925 | Gradually reduced |
| Above $102,925 | No credit available |
To know your precise credit value, refer to the Federal Worksheet in your tax package.
How to Claim the Age Amount Tax Credit
Claiming your Age Amount Tax Credit is straightforward if you follow the correct process:
Step-by-Step Application Guide
- Enter Your Date of Birth
Confirms you’re 65+ as of July 31, 2025. - Go to Line 30100 on your tax return
This is where the Age Amount is claimed. - Calculate Your Credit
Use the Federal Worksheet if your income exceeds $44,325 to determine the reduced amount. - Check for Provincial Credits
Some provinces provide a similar age-based credit (check Form 428). - Submit Your Tax Return
File via NETFILE or submit a paper return before the deadline.
Can You Transfer the Unused Credit?
Yes, if you do not need the full amount, you can transfer the unused portion to your spouse or common-law partner.
Example:
If you’re entitled to the full $8,396 but only need $5,000 to reduce your taxes, you can transfer $3,396 to your spouse to help lower their tax payable too.
Tax Tips for Seniors
Here are key strategies to maximize your tax benefits in 2025:
1. Combine With Other Credits
You can use the Age Amount Tax Credit with:
- Pension Income Amount – Line 31400
- Canada Caregiver Credit – Line 30450
- Medical Expense Credit – Line 33099
- Disability Tax Credit – Line 31600
2. Use Tax Software or a Professional
Tools like TurboTax or Wealthsimple Tax can simplify calculations. For complex situations, consult a certified tax advisor.
3. File Early and Accurately
Filing early lets you catch errors and ensures timely processing of your return.
4. Maintain Documentation
Keep pension slips, medical receipts, and previous tax returns in case the CRA requires verification.
The Age Amount Tax Credit offers a significant opportunity for Canadian seniors to ease their tax burden in 2025.
With a potential value of $8,396, this credit is well worth claiming if you meet the income and age eligibility criteria.
Whether filing yourself or using a professional, ensure you check Line 30100 to make the most of this valuable support.
FAQs
Do I get a refund if my tax owed is zero?
No. The Age Amount Tax Credit is non-refundable, meaning it reduces tax owed but doesn’t generate a refund if you owe nothing.
Can the credit be split between spouses?
Not split, but unused amounts can be transferred to your spouse or common-law partner to reduce their taxes.
Do provinces offer additional age-based credits?
Yes, many provinces have similar age credits. Check Form 428 in your tax return package for provincial details.