Key Takeaway Box
- What is the Age Amount? A non-refundable tax credit for Canadians aged 65+ to reduce their taxable income.
- 2025 Maximum Claim: $8,790 federally, reducing taxes by up to $1,319 (15% of $8,790).
- Eligibility: Net income below $44,325 for full credit; partial credit if income is under $102,925.
- How to Claim: Enter on Line 30100 of your federal tax return.
- Transfer Option: Unused credits can be transferred to a spouse or common-law partner.
- Provincial Variations: Each province has its own thresholds and amounts.
Hustlers, Maximize Your Tax Savings with the Age Amount Tax Credit!
Are you or someone you know turning 65 this year? HustleHub is here to help you navigate the federal and provincial Age Amount Tax Credit system. This non-refundable tax credit can significantly reduce your taxable income, but only if you know how to claim it correctly. Let’s break it down!
What Is the Age Amount Tax Credit?
The Age Amount is a non-refundable tax credit available to Canadians aged 65 or older at the end of the tax year. For 2025, the maximum federal claim is $8,790, which translates into a tax reduction of up to $1,319 (calculated at the lowest federal tax rate of 15%).
However, this amount decreases as your net income exceeds $44,325 and phases out entirely at $102,925.
Who Qualifies for the Age Amount?
To qualify for this credit in 2025:
- You must be at least 65 years old by December 31, 2025.
- Your net income (Line 23600 on your tax return) must be:
- $44,325 or less for the full credit.
- Between $44,325 and $102,925 for a partial credit.
Special rules apply if you declared bankruptcy or moved in/out of Canada during the year. Always consult a tax professional if these situations apply.
How Much Can You Claim?
The amount you can claim depends on your net income. Here’s how it works:
| Net Income Range | Federal Age Amount (2025) |
| $44,325 or less | $8,790 |
| $44,326 – $102,925 | Reduced amount (see formula) |
Calculation Example:
If your net income is $50,000:
- Subtract $44,325 from your net income: $$50,000 – 44,325 = 5,675$$.
- Multiply by 15%: $$5,675 \times 0.15 = 851.25$$.
- Subtract from the maximum claim: $$8,790 – 851.25 = 7,938.75$$.
Provincial Variations
Each province offers its own age amount credit with different thresholds and amounts. For example:
| Province | Maximum Claimable Amount | Income Thresholds |
| Ontario | $6,223 | Phases out after $46,330 |
| Saskatchewan | $5,785 | Phases out after $42,000 |
Check your provincial tax forms for exact amounts.
Can You Transfer Unused Credits?
Yes! If you don’t need the full Age Amount to reduce your taxes to zero, you can transfer any unused portion to your spouse or common-law partner. They’ll need to claim it on Line 32600 of their federal return.
How to Claim the Age Amount
Follow these steps to claim your credit:
- Enter your date of birth in the “Identification” section of your tax return.
- Use Line 30100 on your federal return to claim the federal amount.
- Refer to provincial forms (e.g., Line 58080) for additional credits.
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AI tools may have been used to support the creation or distribution of this content; however, it has been carefully edited and fact-checked by a member of the Editorial team.
