Tax Credits and Benefits

Credits and benefits affect what you owe, what you receive, or both. Some reduce tax payable. Others can still produce a payment even when tax owing is low.

Use This Section When

• you need to distinguish a deduction from a credit or a benefit
• the tax question is really about eligibility, household support, or tax payable reduction
• the return matters because it drives a benefit calculation rather than just the tax bill

Browse This Section

• Family Benefits
• Personal Credits

Start Here

• GST/HST Credit
• Canada Child Benefit
• Basic Personal Amount
• Non-Refundable Tax Credit
• Refundable Tax Credit

Quick Distinctions

Typical Workflow

1. Income is calculated first, including relevant Deductions.
2. Credits then affect tax payable, with Non-Refundable Tax Credit and Refundable Tax Credit working differently.
3. Some programs such as the GST/HST Credit and Canada Child Benefit use the filed return to determine payments outside the normal tax-bill calculation.

Related Sections

• Deductions
• Filing Status and Dependants

In this section

• Family Benefits
  Family and household benefit programs administered through the Canadian tax system.
  • Canada Child Benefit
    The Canada Child Benefit is a tax-administered payment program tied to family income, filing status, and eligible children.
  • GST/HST Credit
    The GST/HST credit is a refundable benefit payment calculated from return information and household income.
• Personal Credits
  Personal credit terms that reduce federal or provincial tax payable on a Canadian return.
  • Basic Personal Amount
    The basic personal amount is the core non-refundable credit amount that shelters part of income from federal tax.
  • Non-Refundable Tax Credit
    Non-refundable tax credits reduce tax payable but generally cannot create or enlarge a refund beyond tax otherwise owing.
  • Refundable Tax Credit
    Refundable tax credits can produce a payment even when tax otherwise payable is low or nil.