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A refundable tax credit can pay you money even when you owe no tax. The Canada Workers Benefit is the best known one: the CRA calls it a refundable credit for people who work on a low income. A non-refundable credit can only cut your tax down to zero, and whatever is left over is lost.
What makes a credit refundable?
Picture a student who earns $9,000 and owes no federal tax. Her basic personal amount is worth a lot on paper, yet it does nothing for her, because there’s no tax for it to reduce. That’s a non-refundable credit. Now give her a refundable one worth $500. The CRA describes these as credits that first reduce the tax you owe, and if the credit is bigger than the tax, you may get the rest back as a refund.
So the label matters most for people with low or no tax. If you pay several thousand dollars in tax a year, you’ll hardly notice the difference.
Which credits pay out even with no tax owing?
Here’s what we could confirm on CRA pages, and what we couldn’t.
| Credit | Where you claim it | What we confirmed |
|---|---|---|
| Canada Workers Benefit | Line 45300 of the 2025 return | Refundable, for people working on a low income. It has a basic amount and a disability supplement. We couldn’t read the 2025 dollar amounts on the page. |
| Refundable medical expense supplement | Line 45200 | You must have claimed medical costs on line 21500 or 33200, be 18 or older, and be a resident all of 2025. Adjusted family net income under $63,374 and work income of at least $4,390. |
| GST/HST credit, now the Canada Groceries and Essentials Benefit | Assessed from your return, no line to fill in | Our calculator uses the July 2026 amounts. We haven’t been able to confirm those amounts, so treat its results as estimates. |
The medical supplement is easy to miss. It sits on a separate line from the medical claim itself, and you use the CRA’s federal worksheet to work it out. If you have low earnings and high medical bills, check it every year.
How much can a refundable benefit add? A worked example
We ran the GST/HST credit calculator, which uses the newer benefit amounts. For a single adult with no children, the yearly figure is $613.72 at an income of $20,000 and $679 at $30,000. A couple with two children at $30,000 gets $1,358. Above roughly $46,000 the payment shrinks fast, and a single adult at $60,000 is left with 60 cents.
That’s a real payment, sent without you filing a claim form. You just have to file a return, even one with no income tax owing. Nobody sends it to someone who skipped filing.
For the non-refundable side, try the tax credits calculator. It covers federal credits only, so it won’t show Ontario or other provincial ones. To see how much of your income is taxed at all, use the income tax calculator. For families, the Canada Child Benefit calculator shows a separate payment based on the same return.
What are the limits of refundable tax credits in Canada?
Most of these credits are income tested, and it’s your family income that sets the amount, so a partner’s raise can shrink or end a payment. That’s the trap with the medical supplement and the workers benefit alike. If you separated for 90 days or more by 31 December, the CRA page says you leave your spouse’s income out.
Also, money back at tax time doesn’t always come from a credit. Many people get a refund because too much tax came off their pay, which is their own money returning. A refundable credit has to be claimed, and if you skip the return or miss the form you get nothing, however low your income was that year.
What about the 2026 tax year? We haven’t seen the 2026 line numbers or amounts published, so everything above is the 2025 return, filed by 30 April 2026 for most people. Check the CRA page for your year before you rely on a figure.
Where the numbers come from
The eligibility conditions and line numbers come from Canada Revenue Agency pages for the 2025 tax year. The benefit amounts in the example come from our own calculator, whose 2026 inputs are still flagged for a manual check. We don’t state any amount here that we couldn’t read on an official page, which is why the workers benefit has no dollar figure.
Frequently asked questions
What is a refundable tax credit?
It first reduces the tax you owe, and any leftover comes back to you as money. A non-refundable credit stops at zero tax.
Is the Canada Workers Benefit refundable?
Yes. The CRA describes it as a refundable credit for people who work on a low income, claimed on line 45300 of the 2025 return.
Who can claim the refundable medical expense supplement?
You need to have claimed medical costs, be 18 or older and a resident all year, with family net income under $63,374 and work income of at least $4,390 (2025 return).
Do I have to file a return to get these credits?
Yes. Payments like the GST/HST credit are worked out from your filed return, even when you owe nothing.
Are the 2026 amounts published?
We haven't confirmed 2026 figures for these credits. Check the CRA page for the year you're filing.
- 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
Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.