Updated Checked by the Tax-Services.ca editorial team How we check
The pension tax credit in Canada is worth at most $280 on your federal return for 2026. It’s the federal pension income amount, up to $2,000 of eligible pension income, multiplied by the 14% federal credit rate. Your province adds its own smaller credit on top.
Who can claim the pension income amount?
You need eligible pension income on your return. The CRA points you to lines 11500, 11600 and 12900 of the return, and says you claim the lesser of $2,000 and the amount worked out on its line 31400 chart (see the CRA’s line 31400 page on the pension income amount). If you’re 65 or older, most lifetime payments from a registered pension plan and most annuity payments qualify. Foreign pensions generally count too, except the part that’s tax-free in Canada because of a tax treaty.
Under 65 it’s tighter, because many types of income only count after the death of your spouse or common-law partner, and the CRA page sets out which ones, so read the section for line 31400 before you assume you qualify.
What about CPP, OAS or an RRSP withdrawal? We didn’t find them on the list we read, so don’t count on them without checking the CRA’s wording yourself.
How much is the credit worth?
You claim the lesser of your eligible pension income and $2,000. Then the credit comes off your tax at the lowest federal rate, which the data we checked shows as 14% for 2026. The CRA page we read is for the 2025 tax year and shows the $2,000 cap. It didn’t list a separate 2026 amount, so we’ve assumed the cap hasn’t changed.
| Eligible pension income | Amount claimed | Federal credit at 14% |
|---|---|---|
| $800 | $800 | $112 |
| $1,200 | $1,200 | $168 |
| $2,000 | $2,000 | $280 |
| $6,000 | $2,000 | $280 |
That’s why a bigger pension doesn’t earn a bigger credit. Once you’ve reached $2,000, the rest of the income is taxed normally. Take Henri, 66, who gets $1,400 a year from a small employer plan. He claims all $1,400, and the federal credit is $196. His neighbour with $9,000 of pension income claims only $2,000 and gets $280, which is $84 more, not the five or six times more the pension itself might suggest.
What does your province add?
Each province has its own amount, and each is capped at whatever you claimed federally. On the 2025 CRA page, Alberta shows $1,719, Ontario $1,762, Nunavut and Yukon $2,000, and most other provinces $1,000. Multiply by your province’s lowest rate to get the dollar credit.
So an Ontario pensioner with $2,000 of qualifying income claims $1,762 provincially. At the lowest Ontario rate of 5.05% that’s about $89. Add the $280 federal credit and the total is roughly $369. We’re using the 2025 provincial amounts because we couldn’t find 2026 ones.
Quebec runs its own return and has its own rules, so don’t apply these numbers there.
Can you see it in a calculator?
Yes. The tax credits calculator has a box for eligible pension income once you tick that you’re 65 or older. It caps the amount at $2,000 and shows the federal saving. It’s federal only, so the provincial piece is on you.
For the bigger picture, the retirement income tax calculator shows how pension, CPP and OAS stack up into one tax bill. And if you want to know what a withdrawal would do, the RRSP withdrawal tax calculator is the one to use. Our retirement income and benefits page pulls the other pieces together.
What if you’re under 65?
Then only certain kinds of payment count, and which ones depends on where the income comes from and whether it arrived because a spouse or common-law partner died. Don’t guess from a friend’s situation. Read the CRA page for line 31400 and match it against the slip you actually received. If you don’t qualify this year, make a note for the year you turn 65, since the list gets much wider then.
Mistakes that cost people the credit
The usual one is not claiming it. Tax software asks, but paper filers skip the line. Another is claiming it on income that doesn’t qualify and then getting a reassessment letter months later.
A third is mixing it up with the age amount. That’s a separate credit for people 65 and over, which the federal data shows as $9,208 for 2026, reduced once net income passes $46,432. Each person claims the pension amount on their own pension income, up to $2,000, and the tax software usually asks the question for you if you’ve entered a slip.
If your pension is small, the credit is small. On $800 it’s $112. Worth claiming, and not worth losing sleep over.
Our sources
The $2,000 limit, the eligibility wording and the provincial amounts come from the Canada Revenue Agency‘s page for line 31400, tax year 2025. The 14% credit rate and the age amount come from the federal data for 2026 that this site’s calculators use. We’re an independent site, and no government body is behind it.
Frequently asked questions
How much is the pension tax credit in Canada?
Federally it's up to $2,000 of eligible pension income at 14%, so up to $280 for 2026. Your province adds its own smaller credit.
Does CPP or OAS count for the pension credit?
We couldn't confirm that they do. Check the CRA page for line 31400 before you claim them.
Can I claim it before age 65?
Sometimes. Many income types only qualify under 65 after the death of a spouse or partner. The CRA page for line 31400 lists the cases.
Is the pension credit the same as the age amount?
No. The age amount is a separate credit for people 65 and over, reduced as net income rises.
Can my spouse claim my pension credit?
Each person claims up to $2,000 on their own eligible pension income. The amount isn't shared.
All rrsp and retirement calculators
- RRSP, TFSA, FHSA and retirement income in Canada
How the RRSP, TFSA and FHSA differ, the 2026 limits, what happens when you withdraw, and where CPP and OAS fit into your retirement income