Personal Tax Tip – Tax Credits for Retirees (Updated: 2026)

Tax Credits for Those Over 65

If you are 65 years of age or older on December 31 of the tax year, you may be eligible for certain tax breaks.

Age amount
You may be eligible to claim a tax credit for being 65 or older, depending on your income level. The maximum age amount is reduced as your net income exceeds a threshold and is fully phased out at higher income levels. The thresholds are indexed annually. For current amounts and phase-out ranges, see the CRA – Line 30100 (Age amount).

Pension income amount
You may be eligible to claim the pension income tax credit on the lesser of $2,000 and the eligible pension income you included in income for the year. Eligible pension income generally includes: annuities from superannuation or registered pension plans, RRSP annuities, RRIF payments, and annuity payments from a deferred profit sharing plan (DPSP). Old Age Security and Canada Pension Plan income do not qualify for the pension credit, although US Social Security may qualify to the extent it is taxed in Canada. The credit is also available to individuals under 65 on certain life annuity payments (e.g. from pension plans or arising from the death of a spouse).

If you are 65 or older and your only pension income is OAS and CPP but you have an RRSP, you may qualify by transferring enough RRSP funds into a RRIF or annuity to create qualifying pension income. If you are under 65 and receiving pension or RRSP annuity/RRIF income as a result of your spouse’s death, you may also qualify.

Pension income splitting
You may be able to elect to split up to 50% of your eligible pension income with your spouse or common-law partner (Form T1032).

If you are 65 or older, consult our knowledgeable Chartered Professional Accountants to see what tax breaks you might be eligible for.