Filing Your Return -> Pension income tax credit
Income Tax Act s. 118(3), 118(7), 118(8)
Line 31400 Pension Income Amount Tax Credit
Note: Before tax year 2019, line 31400 was line 314.
Taxpayers receiving certain pension income may claim both a federal and provincial/territorial pension income tax credit. This is a non-refundable credit, but can be transferred to a spouse or common-law partner if it is not fully used by the taxpayer. Any unused portion can not be carried forward or back. See the tables of non-refundable tax credits for amounts and tax rates for all provinces and territories.
The pension income amount tax credit is claimed on line 58360 (line 5836 prior to 2019) of the provincial tax return.
The amount of the federal credit is 15% (lowest federal tax rate) x the lesser of:
Thus, the maximum amount eligible for the credit is $2,000.
The amount of the provincial/territorial credit is the lowest tax rate for that province/territory x the lesser of the above amounts, replacing the $2,000 federal amount with the provincial or territorial amount.
Tax Tip: Transfer any unused portion of your pension income tax credit to your spouse.
What are eligible and qualified pension income for purposes of the pension income tax credit?
Will the spouse get a pension income tax credit when pension income is split with a spouse?
Completing form T1032 - Step 4 Pension income amount for the pension income tax credit
Canada Revenue Agency (CRA) Resources
Revised: November 28, 2021
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