Updated Checked by the Tax-Services.ca editorial team How we check
A student with $9,000 of tuition and $14,000 of income owes almost no federal tax, so the tuition credit has nothing to reduce. Up to $5,000 of it can go to a parent, grandparent or spouse, where it’s worth $700 off their 2026 federal tax at 14%. The other $4,000 carries forward with no expiry date and waits for the student’s first taxable year.
What does the $9,000 student example look like?
With $14,000 of income and no other credits, the engine puts the student’s federal tax at $0, so none of the $9,000 is needed for themselves. That leaves $5,000 to give away and $4,000 to keep. A parent in Ontario with $75,000 saves $700 federally on the transfer. The $4,000 carried forward is worth more once the student lands a $60,000 job, where it cuts tax by $560 federally and $202 in Ontario.
| Use of the $9,000 | Who uses it | Value (estimate) |
|---|---|---|
| Student’s own claim | Student | $0, no federal tax to reduce |
| Transfer of $5,000 | Parent in Ontario, $75,000 income | $700 federal |
| Carry forward $4,000 | Student at $60,000 income in Ontario | $762 federal and Ontario |
The parent’s bracket doesn’t change the federal saving, because every non-refundable credit is worth the lowest rate, 14%, whatever the person earns. A parent at $60,000 and one at $150,000 both save $700 on a $5,000 transfer, as long as each owes that much tax. So pick the recipient with enough federal tax to absorb the credit. The estimates come from the site engine and use 2026 rates. Check your real numbers with the tax credits calculator or the income tax calculator.
How much is a tuition credit actually worth?
For 2026 the federal tuition credit is worth 14% of the eligible amount, down from 14.5% for 2025 because the lowest federal rate changed in mid-2025. It’s non-refundable: it can bring your federal tax to zero but never produces a refund on its own. Your school issues a T2202 slip after the year ends for fees above $100 at that institution, and you attach the details on Schedule 11. You claim the fees even if a parent or a bursary paid them. Our student life event page and the student tax return checklist list the other student claims, so this page sticks to tuition.
In what order do you use, transfer and carry forward tuition?
The student claims first, then transfers, then carries forward what’s left. Schedule 11 works out how much the student needs to bring federal tax to zero, and only the rest can move on. A transfer is capped at $5,000 of the current year’s tuition, minus what the student used. Anything not transferred carries forward with no time limit. The Canada Revenue Agency: transferring and carrying forward amounts page spells this out.
Two rules trip people up. An amount carried forward can never be transferred later, so the choice gets made in the year the tuition was paid. And you have to file a return every year you’re carrying an amount forward, even with no income.
How does a tuition transfer work step by step?
You choose one recipient, record the amount on your T2202, and the recipient claims it on line 32400 of their own return. That can be your spouse or common-law partner, their parent or grandparent, or your parent or grandparent.
- Get the T2202 from the school (or TL11A or TL11C for some institutions).
- Fill in Schedule 11 to find what you need for yourself, which is $0 if you owe no federal tax.
- Write the amount you’re giving away, up to $5,000, in the transfer section on the back of the T2202 and sign it.
- Hand the signed form to the parent, grandparent or spouse, who enters it on line 32400. A spouse also completes Schedule 2.
- Keep a copy. The CRA can ask for it, and the student reports the transfer on their own Schedule 11.
The recipient should take only what they can use against their own federal tax, because the extra is wasted and could have stayed with the student. A parent or grandparent can’t receive the transfer if the student’s spouse already claims the spouse amount or a tuition transfer from the student.
How do provinces treat tuition differently?
Each province sets its own rules for the provincial part of the credit. Manitoba lets a student transfer unused provincial tuition amounts to one designated person (a parent, grandparent or spouse), who claims it on line 58600 of the MB428. On the same $5,000, a Manitoba parent saves about $540 at the 10.8% provincial credit rate. Ontario and Saskatchewan are tighter. The CRA’s 2025 package shows only a claim and a carry-forward on line 58560 of their provincial forms, and a receiving spouse doesn’t fill in a provincial schedule in Alberta, Ontario, Quebec or Saskatchewan. In practice, an Ontario or Saskatchewan student transfers the federal part only.
Saskatchewan also has a Graduate Retention Program credit that works on its own terms. It returns 10% of tuition for each of four years, then 20% for three more years, up to $24,000 for graduates on or after 1 October 2024, and only the graduate claims it. See the Canada Revenue Agency: Saskatchewan tax information page. Quebec residents deal with Revenu Quebec on a separate return. Provincial rules change, so confirm on your province’s page and in the CRA package before relying on this.
Where does this information come from?
Rules come from the Canada Revenue Agency pages on transferring and carrying forward tuition amounts, guide P105, and the 2025 provincial tax packages. Dollar examples come from the site engine and are estimates. Checked in October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the full disclaimer.
Frequently asked questions
Can I transfer tuition I carried forward from last year?
No. Only the current year's tuition can be transferred, and only up to $5,000 minus what you used. Once an amount is carried forward it stays with you, which is why the transfer decision belongs to the year the fees were paid.
Can I split the transfer between a parent and a spouse?
No, you pick one person for the year. To help both, you'd have to lean on the carry-forward, or choose the recipient who can use the whole amount against their own tax.
Does the tuition credit expire if I never work?
No, the carry-forward has no end date. You do need to file a return each year so the CRA keeps a running balance, and your notice of assessment shows the unused amount available for next year.
Is textbook or education money still a credit?
No. The federal education and textbook credits were removed in 2017, and only unused older balances remain on your notice of assessment. The tuition credit, at 14% for 2026, is what's left to claim.