# Canadian tax credits and government benefits explained > The difference between tax credits and benefits in Canada, how they're worked out from your return, and the calculators for the ones people claim most 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](https://tax-services.ca/calculators/income-tax/tax-credits) shows what each claim saves you, and the articles on [non-refundable tax credits](https://tax-services.ca/articles/non-refundable-tax-credits-canada) and [refundable tax credits](https://tax-services.ca/articles/refundable-tax-credits-canada) 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](https://tax-services.ca/canada-groceries-essentials-benefit-payment-dates) and the [Canada Child Benefit](https://tax-services.ca/canada-child-benefit-payment-dates). ## Which credits and benefits do people claim most? - The [Canada Child Benefit](https://tax-services.ca/calculators/family-benefits/canada-child-benefit), for families with children under 18. - The [GST/HST credit](https://tax-services.ca/calculators/family-benefits/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](https://tax-services.ca/calculators/family-benefits/disability-tax-credit), which lowers tax for people with a qualifying condition. - EI and parental leave pay: see the [EI calculator](https://tax-services.ca/calculators/family-benefits/ei-calculator) and the [maternity and parental leave calculator](https://tax-services.ca/calculators/family-benefits/maternity-parental-leave). ## 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](https://www.canada.ca/en/revenue-agency/services/tax/individuals/segments/tax-credits-deductions-persons-disabilities/disability-tax-credit/demystifying-disability-tax-credit.html) 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](https://tax-services.ca/articles/havent-filed-in-years-canada) 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](https://tax-services.ca/articles/notice-of-reassessment-canada) article explains what the new notice means. Our [filing guide](https://tax-services.ca/guides/file-your-taxes) explains what to do after you file, and the [tax calendar](https://tax-services.ca/tax-calendar) keeps the dates you don't want to miss. Newer benefits have their own explainers: the [Canada Groceries and Essentials Benefit](https://tax-services.ca/articles/canada-groceries-essentials-benefit-explained) and the [Manitoba affordability credits for 2027](https://tax-services.ca/articles/manitoba-affordability-credits-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](https://tax-services.ca/articles/canada-caregiver-credit) - [Home Accessibility Tax Credit (HATC) in Canada: Who Qualifies](https://tax-services.ca/articles/home-accessibility-tax-credit-canada) - [Spouse or Common-Law Partner Amount in Canada](https://tax-services.ca/articles/spouse-or-common-law-partner-amount) - [Student Loan Interest Tax Credit in Canada: How to Claim It](https://tax-services.ca/articles/student-loan-interest-credit-canada) - [Disability Tax Credit in Canada: Who Qualifies](https://tax-services.ca/articles/disability-tax-credit-canada) - [Medical Expenses You Can Claim in Canada](https://tax-services.ca/articles/medical-expenses-you-can-claim-canada) ### Deductions - [Moving Expenses Deduction in Canada: Who Can Claim It](https://tax-services.ca/articles/moving-expenses-deduction-canada) - [Child Care Expenses Deduction in Canada: Limits and Who Claims](https://tax-services.ca/articles/child-care-expenses-deduction-canada) - [Tradesperson Tools Deduction in Canada: Limit and How to Claim](https://tax-services.ca/articles/tradesperson-tools-deduction-canada) - [Union and Professional Dues Deduction in Canada: Line 21200](https://tax-services.ca/articles/union-and-professional-dues-deduction) - [Northern Residents Deductions in Canada: Amounts and Zones](https://tax-services.ca/articles/northern-residents-deduction-canada) - [Spousal and Child Support: Tax Rules in Canada](https://tax-services.ca/articles/spousal-support-payments-tax-canada) ### Savings plans and education - [RDSP in Canada: Disability Savings Grants and Bonds](https://tax-services.ca/articles/rdsp-canada-disability-savings) - [RESP and the Canada Education Savings Grant Explained](https://tax-services.ca/articles/resp-canada-education-savings-grant) - [Lifelong Learning Plan in Canada: RRSP Withdrawals for School](https://tax-services.ca/articles/lifelong-learning-plan-canada) - [Are Scholarships and Bursaries Taxable in Canada?](https://tax-services.ca/articles/scholarships-bursaries-tax-canada) ### Benefits and pensions - [Canada Workers Benefit: Who Qualifies and How Much You Get](https://tax-services.ca/articles/canada-workers-benefit-explained) - [Canada Child Benefit: How It Works and How Much You Get](https://tax-services.ca/articles/canada-child-benefit-how-it-works) - [Guaranteed Income Supplement (GIS): Who Qualifies and How Much](https://tax-services.ca/articles/guaranteed-income-supplement-gis) - [Old Age Security Pension: Amount, Deferral and Eligibility](https://tax-services.ca/articles/oas-pension-amount-deferral) - [CPP Retirement Pension: Start at 60, 65 or 70? How Much You Get](https://tax-services.ca/articles/cpp-retirement-pension-start-age) ### Dealing with the CRA - [Tax Instalments for Individuals in Canada: Who Pays and When](https://tax-services.ca/articles/tax-instalments-individuals-canada) - [Notice of Objection to the CRA: Deadline and How to File](https://tax-services.ca/articles/notice-of-objection-cra) - [CRA Taxpayer Relief: How to Cancel Penalties and Interest](https://tax-services.ca/articles/cra-taxpayer-relief-interest-penalty) ## More about credits and benefits --- Source: https://tax-services.ca/guides/benefits-and-credits Last updated: 2026-10-09 Independent information site. Not affiliated with the CRA. No services, no guarantee of accuracy. See https://tax-services.ca/disclaimer