Tax credits that will help save you money in 2025

Personal finance contributor Christopher Liew shares some of the CRA’s best tax credits to help you save even more this tax season. (Gettty Images / Weerayut Chaiwanna)

How much money did you save on your taxes last year?

If you typically file with a tax-filing software or rely on a tax preparer, there’s a chance that your savings could be limited by the program or your tax preparer’s knowledge, causing you to miss out on money-saving tax credits and benefits.

Even if you have an outstanding tax preparer or use the most expensive tax-filing software, it’s still a good idea to know some of the basics about the credits you’re receiving.

Below, I’ll share some of the CRA’s best tax credits so you can save even more this tax season.

Refundable vs. non-refundable credits

Before diving into the list, I wanted to briefly clarify the difference between refundable and non-refundable tax credits.

Refundable tax credits are those that have the potential to pay you, assuming you bring your tax liability low enough. Non-refundable credits, on the other hand, cannot pay you back and these credits can only be used to reduce your tax liability.

For example, let’s say you owe $3,000 in taxes and receive $5,000 in refundable credits. This would result in you receiving a $2,000 cheque or direct deposit from the CRA.

Conversely, if you owe $3,000 in taxes and receive up to $5,000 in non-refundable credits, you wouldn’t receive a cheque -- your tax liability (the amount you owe) would just be reduced to $0.

Federal tax credits that can save you money this tax season

Below, I’m going to primarily focus on federal credits offered by the CRA. These are available to eligible taxpayers throughout the country. Some save you money (or pay you) in the form of annual credits that are applied during the tax-filing process, while others are benefits which are paid on a monthly or quarterly basis.

In addition to federal-level credits and benefits, each province and territory has its own unique tax credits that can be used to save you even more. The CRA’s website has an extensive list of province/territory-specific credits and programs.

1. Canada training credit

The Canada training credit is a refundable credit available to individuals between 26 and 66 years old who have been paying for tuition and education expenses to further their careers. This is a great way to get some money back for the money you spent on textbooks, classes, and more.

2. Canada caregiver credit

If you have a spouse, common-law partner, or dependent with a mental/physical disability who lives with you and for whom you provide primary care for, then you may be eligible for the Canada caregiver credit.

This non-refundable credit can reduce your taxable income by up to $8,375, lowering your tax bill accordingly. The actual tax savings depend on your tax rate and situation.

This credit is designed to help reimburse money spent on life necessities for a disabled family member or dependent, such as:

- Food

- Clothing

- Shelter

3. Home accessibility tax credit

Have you made recent home improvements to make your home more accessible to accommodate the disability or age of yourself, partner, or a dependent?

If so, then you may be able to claim up to $20,000 to help reimburse expenses. The qualifying individual must be over age 65 or must have qualified for the disability tax credit at some point in the tax year.

There are also some rules regarding what type of expenses can be covered and how said work must be documented and inspected, which you can view on the CRA’s official page.

4. Canada child benefit

If you’re a new parent, then you should definitely make sure that you’re receiving the Canada child benefit. This is a monthly benefit paid to families who care for children under 18, and is primarily designed for low-to-moderate-income families to help offset the costs of raising and providing for their children.

5. Canada workers’ benefit

If you were at least 19 years old on Dec. 31, were a legal resident for the year, and earned below the net income threshold for your territory or province, then you may be eligible to receive the Canada workers’ benefit.

The maximum basic amount individuals can receive is up to $1,590 and $2,739 for families. There is also a disability supplement for CWB beneficiaries who also suffer from a mental or physical disability.

If eligible, you can expect to receive automatic payments on the following dates:

- July 11, 2025

- October 10, 2025

Don’t forget to file on time

I recommend that individuals get an early start on their taxes so that they don’t have to rush. Trying to rush through taxes often results in missing money-saving benefits and credits like the ones I mentioned above.

While some tax credits may be automatically applied based on your tax return, others must be claimed and filed for individually.

The deadline to file your taxes for 2024 is Wednesday, April 30, 2025. To avoid paying late fees and monthly penalties, it’s important to file your taxes before this date.

Christopher Liew is a CFP®, CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers at Blueprint Financial.