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Non refundable tax credits cut the tax you owe, but they can’t go below zero and they never turn into a payment. On the federal side each dollar of credit amount is worth 14 cents for 2026, so a $5,000 tuition claim saves $700 of federal tax if you owe at least that much.
How do non refundable tax credits work?
You add up your credit amounts, multiply by the lowest federal rate (14% for 2026, the first bracket on the Canada Revenue Agency’s rates page), and subtract the result from your federal tax. That’s the whole mechanism, and it’s less exciting than the name suggests. It differs from a deduction, which lowers income before tax is worked out and so saves tax at your marginal rate.
Your province adds its own credits with its own amounts. The deductions and credits calculator is federal only, so it shows part of your saving, not all of it.
Which credits are worth the most?
The values below are the 2026 amounts times 14%. Every one is a non-refundable credit, so it can only reduce tax you’d otherwise pay.
| Credit | 2026 amount | Federal tax saved at 14% |
|---|---|---|
| Basic personal amount (maximum) | $16,452 | $2,303.28 |
| Age amount (65 and over, before income reduction) | $9,208 | $1,289.12 |
| Disability amount | $10,341 | $1,447.74 |
| Pension income amount | $2,000 | $280.00 |
The age amount is cut back once net income passes $46,432. Tuition, medical expenses, donations, the home buyers’ amount and amounts for a spouse or dependant exist too. The donation rates and the home buyers’ figure aren’t in the table, so look them up on the CRA’s page for each line before you claim.
What does a claim save on a real income?
Say Dana earns $60,000 in Newfoundland and Labrador and claims $5,000 of tuition. The calculator shows $9,897 of income tax before the claim and $9,197 after, so she saves $700. A $6,000 medical bill saves $588, because the calculator takes off the lesser of $2,890 or 3% of net income first, which leaves $4,200 to claim.
Now the same $5,000 of tuition on $20,000 of pay. Federal tax is only $103, so the credit saves $103 and the rest goes unused that year. The CRA page on tuition and education amounts points to separate rules for carrying unused amounts forward or transferring them, so a low-income year doesn’t have to mean a wasted claim. That’s the trap with these credits: they’re worth most to people who owe the most.
What mistakes do people make with these credits?
The biggest one is assuming a credit brings a refund. It doesn’t. If tax was withheld from your pay, you get that money back through the return, but the credit itself only wipes out what you owed. The tax refund calculator separates the two.
A second mistake is mixing up credits with deductions. A $5,000 RRSP deduction saves you tax at your top rate, so at 35% it’s $1,750, while a $5,000 credit saves $700. They’re different tools. The RRSP calculator covers the first.
The third catch is spouses. The split of credits between spouses matters for some, but who claims what depends on the rule for each credit. Read the CRA page for the line you’re using. And if a credit is refundable instead, such as the Canada Workers Benefit, it behaves differently and can pay you when no tax is owed.
How do you decide which credits to chase?
Before you go hunting for receipts, ask two questions. Do you owe federal tax at all? And is the credit large enough to matter next to what you owe? If the answer to the first is no, a refundable benefit is the better thing to chase.
If the answer is yes, sort by size. A few bucks of donations isn’t worth an hour of digging, but a year of tuition or a big medical bill usually is. Keep receipts for at least six years, since the CRA can ask for them well after you’ve filed.
What if I’m not sure a credit applies to me?
Read the CRA’s page for that line, because eligibility sits in the fine print: who counts as a dependant, which expenses qualify, and which months count. If it’s still unclear after that, a tax preparer can look at your situation. Our guide to choosing a tax preparer covers what to ask.
The sources behind this page
Amounts come from the Canada Revenue Agency: the 2026 rates page (14% lowest rate), the basic personal amount page and the 2026 indexation notes, with the age, pension, disability and medical figures from its 2026 credit pages as recorded in our data. Examples are our calculator’s output for one employee in 2026. The site isn’t connected to any government, and your notice of assessment is what counts.
Frequently asked questions
What does non-refundable mean?
The credit can reduce your tax to zero but can't produce a payment beyond that. Refundable credits, like the Canada Workers Benefit, can.
How much is a federal credit worth in 2026?
14% of the credit amount, the lowest federal rate. A $5,000 claim saves $700.
Is the basic personal amount a credit?
Yes. The CRA calls it a non-refundable tax credit, and the 2026 maximum is $16,452.
What if I owe less tax than my credits?
You only use as much as your federal tax allows. On $20,000 of pay the calculator lets a $5,000 tuition claim save just $103.
Do provinces have their own credits?
Yes, at their own amounts. Our credits calculator covers federal credits only.
- 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