Douglas Olsen
Students in Canada are required to pay income taxes on their taxable income every year. This includes international students, who are considered temporary residents for tax purposes. The Canadian tax system is based on residency, so if you lived in Canada for at least 183 days during the calendar year, you are considered a resident for tax purposes and are subject to the same income tax rules as Canadian students. Students can benefit from filing taxes, as they may be eligible for deductions, credits, and refunds. For example, money from student loans is not considered taxable income in Canada, and students can claim deductions for tuition, textbooks, and interest paid on student loans.
| Characteristics | Values |
|---|---|
| Who needs to pay taxes? | Anyone who lives in Canada, including minors and domestic or international students, must pay income tax on their taxable income. |
| Tax-free income threshold | If you earn less than $15,000 in a year, you won't pay personal income taxes as the basic personal amount (BPA) credit ($15,705 in Ontario in 2024) would offset this income to zero. |
| Tax deadline | The tax filing deadline for most Canadians is April 30. |
| Tax refund | You can expect your refund within two weeks (for online returns) and eight weeks (for paper returns). |
| Tax credits | Students can claim tax credits for tuition and paying interest on student loans. |
| Tax deductions | Students can claim deductions for moving expenses and childcare expenses. |
| Tax residency | International students are considered "temporary residents" and are subject to the same tax rules as Canadian residents if they have lived in Canada for at least 183 days during the calendar year. |
| Tax forms | Students need to file a T1 Income Tax and Benefit Return form and may require other forms such as T4 and T4A. |
| Supporting documents | Students should gather tax slips (T2202, T4, T4A) and keep receipts for work-related and eligible expenses. |
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What You'll Learn
International students and tax residency
International students in Canada are subject to the same income tax rules as Canadian students. If you are an international student in Canada, you must determine your residency status to understand your tax obligations. Your residency status is based on the residential ties you have with Canada. Residential ties can include having a home in Canada, a spouse or common-law partner, or a dependent who is moving to Canada to live with you.
If you have established significant residential ties with Canada, you are considered a resident for income tax purposes. In this case, you are subject to the same tax rules as Canadian residents and must file an income tax return if your income exceeds the annual personal exemption (for example, $15,705 in Ontario in 2024). You may also be eligible for benefit and credit payments, such as the GST/HST credit and the Climate Action Incentive Payment. To file your taxes, you will need a Social Insurance Number (SIN) or an Individual Tax Number (ITN) if you are not eligible for a SIN.
If you have not established significant residential ties with Canada, you are considered a non-resident for income tax purposes. In this case, you may still be required to file a tax return in Canada, but your tax obligations may be different. For example, non-residents may be subject to different tax rates and may not be eligible for the same benefits and credits as residents.
It is important to note that your residency status for tax purposes may be different from your immigration status. Even if you are only in Canada for part of the year, you may still be considered a resident for income tax purposes if you have established significant residential ties. Additionally, if you stay in Canada for 183 days or more in a calendar year, you are generally considered a resident for income tax purposes, regardless of your residential ties.
To determine your residency status, you can complete and submit Form NR74, Determination of Residency Status, to the Canada Revenue Agency (CRA). This will help you understand your tax obligations and ensure you are filing your taxes correctly.
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Tax credits and deductions
Students in Canada are eligible for several tax credits and deductions. Firstly, it is important to note that student loans are not considered taxable income in Canada. This means that you do not have to pay income tax on loans provided by the Ontario Student Assistance Program (OSAP) or any other student loans.
If you have paid interest on your student loans, you may be eligible for a non-refundable tax credit equal to 15% of the amount of interest paid. This credit can be claimed by entering the amount on line 31900 of your federal income tax return. Note that this credit is non-refundable, so if you have no income tax to pay for the current year, you will not receive a refund. However, you can defer the credit for up to five years until you can use it to reduce your tax bill.
Students may also be entitled to a tuition tax credit. This credit equals 15% of the amount paid in tuition fees during one year. For example, a student who has paid $3,000 in tuition fees can receive a $450 credit. To claim this credit, you must have the form detailing your tuition fees (T2202, TL11A, TL11C, or TL11D), issued by your educational institution. Then, transfer this amount to line 32300 on your federal tax return. Similar to the student loan interest credit, this tuition credit is also non-refundable, so if you do not have any income tax to pay, you will not receive a refund. However, you may be able to carry this credit forward to future years when you will have to pay more income tax. You can also transfer it to your partner, parent, or grandparent so they can reduce their tax bill.
In addition to these student-specific tax credits, students in Canada may also be eligible for other deductions and credits, such as the GST/HST credit, which is a tax-free amount paid four times a year to low- and modest-income earners to offset the goods and services tax/harmonized sales tax (GST/HST) they pay. To qualify, your tax residence must be in Canada, and you must be 19 years of age or older.
Finally, students with disabilities may be eligible for additional tax credits and deductions. Information about these can be found in the "Tax credits and deductions for persons with disabilities" guide or Guide RC4064, "Disability-Related Information".
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Taxable income
Anyone living in Canada, including international students, must pay income tax on their taxable income. The Canadian tax system is based on residency, so if you lived in Canada for at least 183 days during the calendar year, you are considered a resident for income tax purposes. If you are not eligible for a Social Insurance Number (SIN), you will need an Individual Tax Number (ITN) to file your taxes.
Money from student loans is not considered taxable income in Canada. This means that you do not have to pay income tax on loans provided by the Ontario Student Assistance Program (OSAP) or any other student loans.
You are only required to file a tax return if your income for the year was over the annual personal exemption allowed ($15,705 in Ontario in 2024), or if you are asked by the Canada Revenue Agency to do so. The tax year in Canada is from January 1st to December 31st, and the deadline for filing taxes is April 30th of the following year.
There are several deductions and credits that may apply to students, which can lower taxable income or reduce the amount of tax owed. These include:
- Moving expenses
- Childcare expenses
- Interest paid on student loans
- Tuition, education, and textbook amounts
- GST/HST credit
- Climate Action Incentive Payment (for residents of Alberta, Saskatchewan, Manitoba, and Ontario)
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Tax filing deadlines
In Canada, the tax year runs from January 1 to December 31. The deadline for filing tax returns is usually April 30 of the following year. For example, the deadline for filing taxes for the 2024 tax year was April 30, 2025.
If you have a balance owing, you must file your tax return and make the payment by this date to avoid interest charges and penalties. However, if you miss the deadline, you can still file your tax return after April 30.
There are different deadlines for other tax-related tasks. For instance, the deadline for filing and paying a T1-OVP return for RRSP, PRPP, and SPP excess contributions is March 31. The due date for paying a balance owing on taxes is within 90 days after the trust's tax year-end.
It's important to note that even if you have no income, it's recommended to file a tax return every year to maintain any benefit and credit payments you may be receiving.
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Student loans and tax
Students in Canada must pay income tax on their taxable income. This applies to both domestic and international students. However, student loans are not considered taxable income. Therefore, you do not have to pay income tax on loans provided by the Ontario Student Assistance Program (OSAP) or any other student loans.
If you have received a loan under the Canada Student Loans Act, the Canada Student Financial Assistance Act, the Apprentice Loans Act, or similar provincial or territorial government laws for post-secondary education, you can claim the interest paid on that loan on your Income Tax and Benefit Return. This is known as the student loan tax credit, which gives back 15% on any money you put toward your government student loans. To claim this credit, you must be a Canadian citizen, permanent resident, or protected person and have an eligible student loan. You can save unclaimed credits for up to five years.
It is important to note that if you have consolidated your student loan with other debts, you cannot claim the credit. Additionally, you can only claim the interest paid on the student loan and not on any other type of loan. The interest claimed must be for a student loan that has not been combined with any other loan.
The National Student Loans Service Centre (NSLSC) provides students with access to student loan online services. Students can now access and manage their student loans using their My Service Canada Account (MSCA). This account offers enhanced security and streamlined access to student loan information.
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Frequently asked questions
Students in Canada are required to pay income taxes on their taxable income every year. This includes international students, who are considered "temporary residents" and must follow the same tax rules as everyone else. If you earn less than $15,000 per year, you won't pay personal income taxes as the Basic Personal Amount (BPA) credit will offset this income.
Taxable income for students can include scholarships, research grants, payments from a Registered Education Savings Plan (RESP), tips, and employment income. However, student loans are not considered taxable income in Canada.
Yes, students may be eligible for various benefits and credits, such as the GST/HST credit, Climate Action Incentive Payment, and tuition and education tax credits. Filing taxes is also the only way to obtain certain benefits, such as the Child Tax Benefit. Additionally, students may be able to claim deductions for expenses such as tuition, textbooks, interest paid on student loans, and moving expenses.
To file taxes in Canada, students will need to gather their income information and any supporting documents, such as a T4A slip for scholarship or grant income. International students who are not eligible for a Social Insurance Number (SIN) can apply for an Individual Tax Number (ITN) from the Canada Revenue Agency (CRA). The deadline for filing taxes in Canada is typically April 30 of each year.
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