Every year, Canadians hand the government more than they need to, simply by missing credits they qualify for. Some lower the tax you owe, others put cash straight in your pocket. Here are the ones worth knowing for your 2026 return, both federal and Ontario, in plain language. You will not qualify for all of them, but you may be surprised how many apply to you.
First, Credits Versus Deductions
These two words get mixed up all the time, and the difference takes thirty seconds to learn. A deduction lowers the income you get taxed on, so it is worth more the higher your tax rate. A credit lowers the tax itself, usually by a set percentage. Both put money back in your pocket; they just take different routes to get there. Most of what follows are credits, but there are a few deductions near the end that are just as valuable to claim.
Start With the Basic Personal Amount
Before any credit, everyone gets to earn a chunk of income tax-free. For 2026, the federal Basic Personal Amount is $16,452, so the first part of what you earn is not taxed federally at all. There is also good news baked into this year: the lowest federal tax rate dropped from 15% to 14%, so most people will pay a little less than they did before.
Credits That Lower Your Tax Bill
These are non-refundable credits. They reduce the tax you owe, so the more tax you pay, the more use you get from them.
- Medical expenses: You can claim out-of-pocket costs above the lesser of 3% of your net income or about $2,800. Think prescriptions, dental work, glasses, and many treatments your plan does not cover
- Charitable donations: Give to a registered charity and you get 15% back on the first $200, and a larger share above that
- Disability Tax Credit: Worth around $1,500 in federal tax savings, and closer to $2,000 once you add Ontario’s share. It needs Form T2201 signed by a medical practitioner, and if you cannot use it all, you can pass it to a supporting family member
- Canada Caregiver Credit: For people supporting a spouse, parent, or other dependant with a physical or mental impairment
- Tuition and student loan interest: Students can claim tuition using their T2202 slip, plus the interest paid on government student loans
- Home Accessibility Tax Credit: Claim up to $20,000 in renovations that make a home safer or easier to get around for a senior or a person with a disability, worth up to $3,000 back
- Multigenerational Home Renovation Credit: Worth up to $7,500 if you build a secondary suite for a senior or an adult family member with a disability to live with you
Benefits That Pay You
These put money in your account, and most are worked out automatically from your return. You just have to file to get them.
- Canada Workers Benefit: A refundable credit that tops up the income of lower-income workers, with an extra amount for those who qualify for the disability supplement
- GST/HST Credit: A tax-free payment every quarter that helps offset the sales tax you pay, for people with low or modest incomes
- Canada Child Benefit: Tax-free monthly support of up to $7,997 a year for each child under 6, and up to $6,748 for each child aged 6 to 17
- Canada Training Credit: Builds up a little each year and helps cover the cost of eligible courses and tuition as you pick up new skills
Deductions to Claim Too
These lower your taxable income rather than your tax directly, and they are some of the most valuable moves available.
- RRSP contributions: Money you put in comes off your income for the year, which is why so many people top up before the March deadline
- FHSA contributions: If you are saving for a first home, you can put in up to $8,000 a year and deduct it, on the way to a $40,000 lifetime limit
- Child care costs: Daycare, day camps, and after-school care can be deducted, up to set limits based on your child’s age
- Union and professional dues, and moving expenses: if you moved at least 40 km closer to work or school
Ontario Credits Worth a Look
On top of the federal credits, Ontario has its own, and they are easy to overlook.
- Ontario Trillium Benefit: Rolls three credits into one monthly payment, helping with sales tax, energy costs, and property tax
- Low-Income Individuals and Families Tax (LIFT) Credit: Reduces or wipes out Ontario tax for lower-income workers
- Ontario Seniors Care at Home Tax Credit: For residents 70 and older, worth up to $1,500 toward eligible medical and at-home care costs
- Ontario childcare and seniors’ transit credits: Extra help for families paying for child care and for seniors 65 and older using public transit
Seniors have a couple of extra moves too. Splitting eligible pension income with a spouse can lower a household’s overall tax, and the age amount gives a further credit once you turn 65. Small steps, but they add up.
One Thing That Is Gone
If you are looking for the Canada Carbon Rebate, it is no longer there. The federal consumer carbon price ended in 2025, so there is no carbon rebate to claim on your 2026 return. Worth knowing, so you are not left searching for a payment that has been retired.
Make Sure You Actually Claim Them
Here is the thing that trips people up. Most of these credits and benefits are calculated straight from your tax return. If you do not file, the payments simply stop, even the ones you clearly qualify for. So file every year, even if you earned little or owe nothing. Keep your receipts through the year, check last year’s return to see what you claimed before, and remember the CRA’s Auto-fill feature pulls your slips in for you. If you would like a second set of eyes to make sure nothing slips by, that is exactly what we do.
