Canada Tuition Tax Credit Guide
the tuition tax credit in Canada. The tuition tax credit is a non-refundable tax credit calculated at 15% (federal) of the eligible tuition fees paid to the qualifying post-secondary institutions. The T2202 (the "Tuition and Enrolment Certificate") is the official receipt issued by the Canadian post-secondary institutions (the universities, the colleges, the CEGEPs, the trade schools). The eligible tuition fees include the fees for the courses at the post-secondary level (the degree programs, the diploma programs, the certificate programs) and the fees for the courses that are at least 17 hours in duration (the "occupational skills courses"). The unused tuition credit can be carried forward indefinitely (the taxpayer can use the credit in any future year). The tuition credit transfer allows the student to transfer up to $5,000 of the unused tuition credit to the parent, the grandparent, the spouse, or the common-law partner (the "supporting person"). The provincial tuition credits vary by the province (the Quebec tuition credit at 8% to 25.75%, the Ontario tuition credit at 5.05%, the BC tuition credit at 5.06%, the Alberta tuition credit at 10%). The foreign tuition fees (the fees paid to the foreign universities — the "certified foreign educational institutions") are eligible if the course is at least 13 consecutive weeks and leads to the degree or the diploma. The education and textbook amounts (the pre-2017 credits of $400 or $600 per month) were eliminated for the 2017+ tax years (the tuition credit is the only post-secondary education credit remaining).
Eligible Fees
- Canadian institutions (T2202): The fees paid to the Canadian universities, the colleges, the CEGEPs, the trade schools, and the "qualifying educational institutions" (the institutions that offer the courses at the post-secondary level). The fees must exceed $100 (the "minimum tuition fee" threshold).
- Foreign institutions: The fees paid to the foreign universities that are the "certified foreign educational institutions" — the universities in the US, the UK, Australia, France, Germany, and the other countries that are the signatories to the "certified foreign educational institution" agreement. The course must be at least 13 consecutive weeks and lead to the degree or the diploma.
- Occupational skills courses: The fees for the courses that are less than the post-secondary level but are at least 17 hours in duration and are taken to maintain or improve the occupational skills (the "professional development courses", the "continuing education courses"). The fees must be paid to the "qualifying institution" (the post-secondary institution or the certified trainer).
- Eligible fees included: The tuition fees, the compulsory student fees (the student union fees, the health services fees, the athletic fees, the technology fees), the examination fees, the admission fees, and the certification fees.
- Ineligible fees: The student housing, the meal plans, the textbook costs (the textbook amount was eliminated in 2017), the student activity fees (the non-compulsory fees), the transportation fees, and the health insurance premiums (the "optional fees" that are not related to the course).
Credit Calculation & Transfer
- Federal credit: 15% of the eligible tuition fees. The credit is non-refundable (the student must have the tax payable to use the credit). The taxpayer can claim the tuition credit on the Schedule 11 (the "Tuition and Enrolment Certificate" — the T2202).
- Unused credit carry-forward: The unused tuition credit can be carried forward indefinitely (no time limit). The student must use the credit in the future year when the income is sufficient to offset the tax payable. The carry-forward is reported on the Schedule 11.
- Transfer to parent or grandparent: The student can transfer up to $5,000 of the unused tuition credit to the parent, the grandparent, the spouse, or the common-law partner (the "supporting person"). The transfer is made on the Schedule 11 — the student must also file the tax return (the "student return") to report the tuition and to authorize the transfer.
- Transfer of the unused provincial tuition: The provincial tuition credit can also be transferred to the supporting person (the Ontario tuition credit can be transferred to the parent or the grandparent at the Ontario rate).
Provincial Tuition Credits
- Quebec: The Quebec tuition credit is 8% of the eligible tuition fees (the "Credit for the tuition fees" — the "Crédit pour les frais de scolarité"). The Quebec credit is non-refundable and can be carried forward indefinitely or transferred to the parent.
- Ontario: The Ontario tuition credit is 5.05% of the eligible tuition fees (the "Ontario tuition and education credit"). The Ontario credit is non-refundable and can be carried forward or transferred to the parent or the grandparent.
- British Columbia: The BC tuition credit is 5.06% of the eligible tuition fees (the "BC tuition and education credit"). The BC credit is non-refundable and can be carried forward or transferred.
- Alberta: The Alberta tuition credit is 10% of the eligible tuition fees (the "Alberta tuition and education credit"). The Alberta credit is non-refundable and can be carried forward or transferred.
For the RESP rules and the education savings plans, see our RESP Guide →. For the student loan interest and the tax credits for the students, see our Student Loan Interest Guide →.