Tuition Tax Credit Calculator

The Tuition Tax Credit in 2026 — What Students Can Claim, Transfer, and Carry Forward

The federal Tuition Tax Credit converts eligible post-secondary tuition into a non-refundable tax credit calculated at 14% — the lowest federal tax bracket rate for 2026. Eligible tuition appears on the T2202 Tuition and Enrolment Certificate issued by your school each January. Provincial credits apply on top of the federal credit at each province’s lowest bracket rate (5.05% in Ontario, 14% in Quebec, 10% in Alberta, etc.). Because the federal Basic Personal Amount of $16,452.00 already shelters the first $16,452.00 of income from federal tax, most full-time students with modest part-time earnings cannot use the entire credit themselves — which is exactly when the transfer and carry-forward features become valuable.

The Income Tax Act requires the student to use the credit first to reduce their own federal tax to zero. Any remaining current-year tuition amount (up to a maximum of $5,000.00) can then be transferred to one supporting relative — a parent, grandparent, spouse, common-law partner, or the partner’s parent or grandparent. The transfer is elected by completing Schedule 11 and naming the recipient on the T2202 (or signed paper authorization). The transferee claims the amount on Line 32400 (parent/grandparent) or Line 32600 (spouse/common-law partner) of their own return. Anything beyond the $5,000.00 cap and anything not transferred remains as a carry-forward that the student can use against their own tax in any future year — there is no expiry, but unlike the transfer, carry-forwards cannot be split with anyone else.

Tuition Credit Outcomes by Tuition and Income

For families paying for university or college tuition, the Tuition Tax Credit is one of the largest tax benefits available — especially when combined with RESP withdrawals (Educational Assistance Payments) and any provincial education tax credits that still exist. Quebec stopped offering an education credit in 2013, but Saskatchewan reintroduced a Graduate Retention Program credit, and several provinces still allow a refundable post-secondary credit for tuition. To maximize the benefit, students should file a tax return every year — even with no income — so that the unused tuition appears on their CRA account and stays available for transfer or carry-forward. When parents claim the transfer, the credit is worth 14% federally plus the parent’s provincial lowest rate, often saving the family well over $1,000 per year while the student is in school.