Tuition Tax Credit in Canada: Eligible Fees, Transfers, Carryforwards & Studying Abroad
Post-secondary education can be expensive, but the Canadian tax system provides some relief through the Tuition Tax Credit. If you paid eligible tuition fees during the year, you may be able to reduce the income tax you owe — or transfer part of the credit to a parent, spouse, or grandparent.
This guide explains who can claim the credit, what fees qualify, and what options exist if you don’t need the credit right away.
What Is the Tuition Tax Credit?
The Tuition Tax Credit is a non-refundable tax credit. This means it reduces the amount of tax you owe but does not create a refund on its own if you have no tax payable.
The credit is calculated by multiplying your eligible tuition amount by the lowest federal tax rate (15%). A provincial credit may also apply depending on your province of residence.
Students receive a tuition slip from their school that reports the eligible amount.
Common tuition slips include:
T2202 – Tuition and Enrolment Certificate (Canadian institutions)
TL11A – Tuition Fees Certificate for students attending university outside Canada
TL11C – Tuition Fees Certificate for commuting students attending school in the U.S.
TL11D – Tuition Fees Certificate for deemed residents attending school abroad
Students should keep these forms with their tax records.
What Tuition Fees Qualify?
Not all education costs qualify. According to the CRA, eligible tuition fees generally include amounts paid for instruction at qualifying educational institutions.
Examples of qualifying fees include:
Tuition for courses at a college or university
Certain occupational or professional training programs
Fees paid to certified trade schools
Tuition paid to flying schools or flight training programs that are certified by Transport Canada
Some examination fees required to obtain a professional designation
To claim the tuition tax credit:
The fees must be more than $100 per institution per year
The institution must be a qualifying educational institution
Your school determines what fees are eligible and reports them on the tuition slip.
Professional Examination Fees
Some students incur fees to write exams required to obtain a professional designation (for example accounting, law, or other regulated professions).
These professional examination fees may qualify for the tuition tax credit if:
The exam must be taken to obtain a professional status recognized under federal or provincial law
The organization administering the exam is approved by the CRA
Eligible exam costs may include:
Examination fees
Fees for issuing a certificate or licence
Administrative charges related to the exam
However, preparatory courses or study materials usually do not qualify unless they are included as eligible tuition on the official slip.
Tuition Paid to Schools Outside Canada
Canadian students studying abroad may still be able to claim the tuition tax credit.
Eligible situations include:
Full-time students attending a university outside Canada
- Students can claim the credit if they attend a recognized university outside Canada and are enrolled in a course lasting at least three consecutive weeks.
Students commuting to school in the United States
- If you live in Canada but attend a U.S. educational institution near the border, tuition fees may qualify if you commute regularly to classes.
Deemed residents studying abroad
- Students who are considered residents of Canada for tax purposes may claim eligible tuition paid to institutions outside Canada.
The educational institution must complete the appropriate CRA form to certify the tuition paid.
Tuition Fees for Flying Schools
Tuition paid to a flying school or aviation training program may qualify if the school is:
Certified by Transport Canada, and
Provides training to obtain a commercial pilot’s licence or professional flight qualification
As with other education institutions, the school must issue a tuition certificate showing eligible fees.
Provincial Tuition Tax Credits
Most provinces used to provide their own tuition credits, but many provinces have eliminated them.
As of now:
Ontario eliminated its provincial tuition credit in 2017
Some provinces and territories still offer a provincial tuition credit
If your province provides one, it is calculated similarly to the federal credit but using the provincial tax rate.
Even if your province has eliminated the credit, previously accumulated provincial tuition amounts may still be carried forward and claimed.
Transferring Tuition Credits to Family Members
Students may not always have enough income to use the tuition credit themselves. In that case, up to $5,000 of the current year’s tuition amount can be transferred to:
A parent or grandparent
A spouse or common-law partner
Important rules:
Only current-year tuition amounts can be transferred
Any portion of the tuition used by the student cannot also be transferred
The student must designate the transfer on their tax return
Unused amounts not transferred remain available to carry forward.
Carrying Forward Unused Tuition Credits
If a student does not need the credit in the current year, the unused amount can be carried forward indefinitely.
Key points about carry-forward:
Unused amounts are tracked by the CRA
The credit must be used as soon as the student has taxable income
Carry-forward amounts cannot be transferred to another person
Many students accumulate tuition credits while in school and begin using them once they enter the workforce.
Restrictions and Common Limitations
While the tuition credit is helpful, there are some important restrictions.
The credit cannot be claimed for:
Fees paid by an employer if the amount is not included in income
Tuition reimbursed through certain government training programs
The cost of books, student association fees, or residence
Transportation or parking
Courses taken for personal interest that do not qualify as post-secondary education
Only the eligible tuition amount shown on the official tax slip can be claimed.
Final Thoughts
The Tuition Tax Credit can provide valuable tax relief for students and families. Understanding how the rules work can help ensure you receive the full benefit available.
Key takeaways:
Eligible tuition fees must generally exceed $100 per institution
Students receive a tuition certificate from their school
Up to $5,000 of current-year tuition may be transferred to certain family members
Unused credits can be carried forward indefinitely
Some professional exam fees and aviation training may qualify
Because the rules can vary depending on the institution and the type of training, it’s always a good idea to review the tuition slip carefully or consult a tax professional before filing.
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Not sure if you’re claiming all the education credits you’re entitled to?
Tuition, professional exam fees, and transferred credits can sometimes be missed or reported incorrectly.
If you have questions about your tax situation, book a free 15-minute consultation and we can review your options.
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