The Tuition Tax Credit: Benefits for Both Mature and Young Students

Barbara Britto

In Canada, pursuing post-secondary education can be expensive, but there are valuable tax relief measures to help ease the financial burden. One of the most important is the Tuition Tax Credit, which remains available even though education and textbook amounts were eliminated for tax years after 2016. For students of all ages, this credit can make education more affordable and help reduce income tax owing.

If you are taking professional development or advanced education through Knowledge Bureau, the tuition fees you pay may qualify for this credit. That means your investment in continuing education could bring tax savings—helping you upgrade your skills and strengthen your career while lowering your cost of learning.

What Is the Tuition Tax Credit?

The Tuition Tax Credit allows students to claim eligible tuition fees paid to a qualifying post-secondary institution in Canada—or, in some cases, abroad. The credit is worth 15% of the eligible tuition amount and is non-refundable, meaning it reduces tax payable but does not generate a refund on its own.

If a student does not have enough income to use the credit in the year it is earned, they can carry it forward to future years or transfer up to $5,000 to a supporting individual such as a parent, grandparent, spouse, or common-law partner.

To claim tuition fees, the student must receive one of the following forms from the educational institution:

• T2202: Tuition and Enrolment Certificate
• TL11A: Tuition and Enrolment Certificate (for schools outside Canada)
• TL11C: Tuition and Enrolment Certificate – Commuter to the United States
• TL11D: Tuition Fees Certificate – For Educational Institutions Outside Canada for a Deemed Resident of Canada

Case Study 1: A Young Full-Time Student

Mary, an 18-year-old student, pays $6,000 in tuition for her first year of university. She earns $8,000 from part-time work, so she owes little to no federal tax. Mary can still claim her tuition credit and carry it forward until she begins full-time work, or she can transfer up to $5,000 of unused credits to her parents—helping them reduce their tax bill.

This benefit allows Mary’s family to share in the tax savings now while preserving future credits to reduce Mary’s tax payable once she starts her career.

Case Study 2: A Mature Student Returning to School

John, a 45-year-old professional, enrolls in a part-time certificate program and pays $3,500 in tuition. Because he is in a higher tax bracket, John can immediately use the tuition tax credit to reduce his federal tax payable by $525 (15% of $3,500).

Since John is paying out of pocket—not receiving employer reimbursement—he reaps the full benefit. He may also qualify for additional measures, such as the Canada Training Credit, which could further reduce his net cost of education.

Benefits and Considerations of Tuition Tax Credits

1. Transferability: Students can transfer up to $5,000 of unused credits to parents, grandparents, or a spouse/common-law partner.
2. Carryforward Option: Unused credits can be carried forward indefinitely until the student earns enough income to use them.
3. Eligibility Criteria: Tuition must be paid to a recognized institution, exceed $100 per course, and be supported by an official T2202 or equivalent form. Students must be at least 16 years old.
4. Complementary Benefits: Students may also benefit from the Canada Training Credit, student loan interest deductions, or the RRSP Lifelong Learning Plan.

Bottom Line

The Tuition Tax Credit is a powerful way to make education more affordable—whether you are just starting out, returning to school mid-career, or investing in professional development. If you are enrolled in Knowledge Bureau courses, your tuition fees may qualify, allowing you to save on taxes while gaining the skills and credentials to advance your career.

Education is an investment, and the Canadian tax system provides meaningful support to help you maximize its value.