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A credit lowers the tax you owe, while a benefit is a payment the CRA sends you. Most are worked out from your tax return, so filing every year, even with no income, is how you keep them coming.
A tax credit lowers the tax you owe, while a benefit is a payment the CRA sends you, usually based on your family income. Federally each non-refundable credit is worth 14% of the amount you claim in 2026, so a $1,000 claim takes $140 off your tax. Benefits are worked out from your return, so file every year, even with little or no income.
How do tax credits work in Canada?
A non-refundable credit cuts the tax you owe, and it can bring that tax to zero but it can’t take it below. The basic personal amount is the best-known one. Federally each credit counts for 14% of the amount you claim, and your province adds its own. So a $1,000 claim takes $140 off your federal tax. If you only owe $100, you save $100 and the other $40 is gone. The tax credits calculator shows what each claim saves you, and the articles on non-refundable tax credits and refundable tax credits explain the two kinds.
How do government benefits work?
Benefits are payments, and most are income-tested: the more family income you have, the less you get.
They’re worked out from your tax return, which is why you should file every year, even if you had little or no income. That’s how the CRA knows to pay you, and it won’t notice otherwise. The GST/HST credit, covered below, runs July to June and is recalculated each July from the return you filed the year before. Payment dates are on the pages for the groceries benefit and the Canada Child Benefit.
Which credits and benefits do people claim most?
- The Canada Child Benefit, for families with children under 18.
- The GST/HST credit, a quarterly payment for lower incomes. Since July 2026 it has been renamed the Canada Groceries and Essentials Benefit, with the same eligibility rules.
- The disability tax credit, which lowers tax for people with a qualifying condition.
- EI and parental leave pay: see the EI calculator and the maternity and parental leave calculator.
Can you claim a credit or benefit you missed in past years?
Sometimes. The disability tax credit is a good example: the CRA says eligibility can go back a maximum of 10 years from the date it receives your application. A medical practitioner has to certify the form first. So if a relative has a qualifying condition and never applied, it’s worth starting the conversation. If you skipped filing in some years, the article on what to do when you haven’t filed in years is the place to begin.
What should you check each year?
Look at your notice of assessment. It shows the income the CRA used, and a wrong figure there can change what you’ll be paid next year. If the CRA changes your return later, the notice of reassessment article explains what the new notice means. Our filing guide explains what to do after you file, and the tax calendar keeps the dates you don’t want to miss.
Newer benefits have their own explainers: the Canada Groceries and Essentials Benefit and the Manitoba affordability credits for 2027.
Where can you read about each credit, deduction and benefit?
These explainers each cover one claim: who qualifies, what the CRA page says, and a worked example. Amounts are for the latest year the CRA has published.
Credits and amounts
- Canada Caregiver Credit: Who Qualifies and How Much You Get
- Home Accessibility Tax Credit (HATC) in Canada: Who Qualifies
- Spouse or Common-Law Partner Amount in Canada
- Student Loan Interest Tax Credit in Canada: How to Claim It
- Disability Tax Credit in Canada: Who Qualifies
- Medical Expenses You Can Claim in Canada
Deductions
- Moving Expenses Deduction in Canada: Who Can Claim It
- Child Care Expenses Deduction in Canada: Limits and Who Claims
- Tradesperson Tools Deduction in Canada: Limit and How to Claim
- Union and Professional Dues Deduction in Canada: Line 21200
- Northern Residents Deductions in Canada: Amounts and Zones
- Spousal and Child Support: Tax Rules in Canada
Savings plans and education
- RDSP in Canada: Disability Savings Grants and Bonds
- RESP and the Canada Education Savings Grant Explained
- Lifelong Learning Plan in Canada: RRSP Withdrawals for School
- Are Scholarships and Bursaries Taxable in Canada?
Benefits and pensions
- Canada Workers Benefit: Who Qualifies and How Much You Get
- Canada Child Benefit: How It Works and How Much You Get
- Guaranteed Income Supplement (GIS): Who Qualifies and How Much
- Old Age Security Pension: Amount, Deferral and Eligibility
- CPP Retirement Pension: Start at 60, 65 or 70? How Much You Get
Dealing with the CRA
- Tax Instalments for Individuals in Canada: Who Pays and When
- Notice of Objection to the CRA: Deadline and How to File
- CRA Taxpayer Relief: How to Cancel Penalties and Interest
More about credits and benefits
- Canada Caregiver Credit: Who Qualifies and How Much You Get
The Canada caregiver credit adds up to $8,601 for an infirm adult or $2,687 for an infirm child under 18. See who qualifies, the net income test and proof.
- Home Accessibility Tax Credit (HATC) in Canada: Who Qualifies
The home accessibility tax credit covers up to $20,000 a year of renovations for people 65 or older or with the DTC. See what qualifies and how to claim.
- Spouse or Common-Law Partner Amount in Canada
How the spouse or common-law partner tax credit works: the income test, the formula, a 2026 example, separation rules and the eligible dependant difference.
- Manitoba Personal Tax Credit: What It Saves You
The basic personal amount of $15,780 cuts Manitoba tax by $1,704 a year. See who loses part of it, and how it changes your tax bill
- Canada Donation Tax Credit: What You Get Back
The Canada donation tax credit pays 29% above your first $200 of gifts. See federal rates, the 75% limit and what $1,000 returns in Ontario
- Tax Rebate in Canada: What Exists and How to Claim It
A tax rebate in Canada is not a refund. See what happened to the carbon rebate and GST/HST credit, plus how to get more back with an RRSP
- Ontario Tax Credits You Can Claim on Your Return
Ontario offers credits on your return and benefits paid monthly. See LIFT, the Trillium Benefit, the basic amount and the tax on $60,000
- BC Carbon Tax Rebate: Is Any Payment Still Coming?
The BC carbon tax rebate ended with the tax itself in April 2025. See what still applies to late filers and the tax you pay on $50,000
Frequently asked questions
Do I have to file a return to get benefits?
Yes, for most of them. Benefits like the Canada Child Benefit and the GST/HST credit are worked out from your tax return, so file even if you earned little or nothing.
What is the difference between a credit and a benefit?
A non-refundable credit lowers the tax you owe and can't go below zero. A benefit is a payment the government sends you, often based on your family income.
Why did my benefit amount change?
Most benefits depend on last year's family net income, so a raise, a new child or a change in marital status will move the amount. The CRA's notice shows how it was worked out.
What happened to the GST/HST credit?
Since July 2026 the GST/HST credit has been renamed the Canada Groceries and Essentials Benefit, with the same eligibility rules. It runs July to June and is recalculated each July from your previous return.
Can I claim the disability tax credit for past years?
Often yes. The CRA says eligibility can go back a maximum of 10 years from the date it receives your application, and a medical practitioner has to certify the form first.
Where do I check what I qualify for?
On the CRA's own pages and in My Account. The calculators here give estimates to help you plan.