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A credit lowers the tax you owe, while a benefit is a payment the CRA sends you. Most are worked out from your tax return, so filing every year, even with no income, is how you keep them coming.
Credits and benefits both put money back in your pocket, but they work differently, and mixing them up is how people end up missing claims they were entitled to for years. A credit lowers your tax. A benefit is a payment sent to you.
How do tax credits work?
A non-refundable credit cuts the tax you owe, and it can bring that tax to zero but it can’t take it below. The basic personal amount is the best-known one. Federally each credit counts for 14% of the amount you claim, and your province adds its own. So a $1,000 claim takes $140 off your federal tax. If you only owe $100, you save $100 and the other $40 is gone. The tax credits calculator shows what each claim saves you.
How do benefits work?
Benefits are payments, and most are income-tested: the more family income you have, the less you get.
They’re worked out from your tax return, which is why you should file every year, even if you had little or no income. That’s how the CRA knows to pay you, and it won’t notice otherwise. The groceries benefit, for one, runs July to June and is recalculated each July from the return you filed the year before.
Which ones do people claim most?
- The Canada Child Benefit, for families with children under 18.
- The GST/HST credit, a quarterly payment for lower incomes. Since July 2026 it has been renamed the Canada Groceries and Essentials Benefit, with the same eligibility rules.
- The disability tax credit, which lowers tax for people with a qualifying condition.
- EI and parental leave pay: see the EI calculator and the maternity and parental leave calculator.
What if you missed one in past years?
The disability tax credit is a good example: the CRA says eligibility can go back a maximum of 10 years from the date it receives your application. A medical practitioner has to certify the form first. So if a relative has a qualifying condition and never applied, it’s worth starting the conversation.
What should you check each year?
Look at your notice of assessment. It shows the income the CRA used, and a wrong figure there can change what you’ll be paid next year. Don’t skip it once tax time is over. Our filing guide explains what to do after you file, and the tax calendar keeps the dates you don’t want to miss.
More about credits and benefits
- Manitoba Personal Tax Credit: What It Saves You
The basic personal amount of $15,780 cuts Manitoba tax by $1,704 a year. See who loses part of it, and how it changes your tax bill
- Canada Donation Tax Credit: What You Get Back
The Canada donation tax credit pays 29% above your first $200 of gifts. See federal rates, the 75% limit and what $1,000 returns in Ontario
- Tax Rebate in Canada: What Exists and How to Claim It
A tax rebate in Canada is not a refund. See what happened to the carbon rebate and GST/HST credit, plus how to get more back with an RRSP
- Ontario Tax Credits You Can Claim on Your Return
Ontario offers credits on your return and benefits paid monthly. See LIFT, the Trillium Benefit, the basic amount and the tax on $60,000
- BC Carbon Tax Rebate: Is Any Payment Still Coming?
The BC carbon tax rebate ended with the tax itself in April 2025. See what still applies to late filers and the tax you pay on $50,000
- ADHD Tax Credit in Canada: Who Can Claim It
Is there an ADHD credit? The CRA looks at daily limits, not diagnosis. See the $10,138 2025 amount, the T2201 form and 10 year look-back
- Which Tax Benefits Can You Claim in Canada?
Tax deductions, credits and payments like the child benefit work differently: see 2026 amounts and a family that gets $12,102 a year at $60,000
- Refundable Tax Credits in Canada and How They Pay
Some credits pay you even when you owe no tax. See which refundable ones exist in Canada, who qualifies and what a single adult could get
Frequently asked questions
Do I have to file a return to get benefits?
Yes, for most of them. Benefits like the Canada Child Benefit and the GST/HST credit are worked out from your tax return, so file even if you earned little or nothing.
What is the difference between a credit and a benefit?
A non-refundable credit lowers the tax you owe and can't go below zero. A benefit is a payment the government sends you, often based on your family income.
Why did my benefit amount change?
Most benefits depend on last year's family net income, so a raise, a new child or a change in marital status will move the amount. The CRA's notice shows how it was worked out.
Where do I check what I qualify for?
On the CRA's own pages and in My Account. The calculators here give estimates to help you plan.