How Student Income Is Taxed
Income Types
| Income Source |
Tax Form |
Taxable? |
| Part-time job |
T4 |
Yes |
| Summer job |
T4 |
Yes |
| Scholarships/Bursaries |
T4A |
Usually no (if full-time student) |
| TAship/RAship |
T4 |
Yes |
| Freelance/Self-employment |
None (report yourself) |
Yes |
| Student loans |
None |
No (not income) |
| RESP withdrawals (EAP) |
T4A |
Yes |
When Scholarships Are Non-Taxable
| Condition |
Tax-Free? |
| Enrolled full-time in qualifying program |
Yes |
| Part-time with disability |
Yes |
| Research grant (not for degree) |
No — taxable |
| Post-doctoral fellowship |
No — taxable |
The Basic Personal Amount (BPA)
| Year |
Federal BPA |
| 2024 |
$15,705 |
| 2025 |
~$16,000 (indexed) |
What it means: You pay $0 federal tax on your first ~$15,705 of income.
Provincial BPA Varies
| Province |
Approximate BPA |
| Ontario |
~$11,865 |
| BC |
~$12,580 |
| Alberta |
~$21,003 |
| Quebec |
~$18,056 |
Common Student Tax Credits
Tuition Tax Credit
| Feature |
Details |
| Credit rate |
15% federal |
| How it works |
15% × eligible tuition = tax reduction |
| Example |
$8,000 tuition × 15% = $1,200 credit |
| Carry forward |
Unused credits carry forward to future years |
| Transfer |
Up to $5,000 to parent/spouse |
Student Loan Interest Credit
| Feature |
Details |
| Credit rate |
15% federal |
| Eligible loans |
Canada/provincial student loans only |
| Private loans |
Not eligible |
| When to claim |
Any time within 5 years of paying |
Moving Expenses
| Eligible If |
Details |
| Moved 40+ km |
Closer to school for work or study |
| Income at new location |
Scholarships/employment count |
| Deductible expenses |
Moving truck, travel, temporary lodging |
Tax Filing Examples
Example 1: Part-Time Job + Full-Time Student
| Item |
Amount |
| Summer job income |
$8,000 |
| Part-time job income |
$4,000 |
| Scholarship |
$5,000 (non-taxable) |
| Taxable income |
$12,000 |
| Federal tax before credits |
~$1,800 |
| Basic personal amount credit |
$2,355 |
| Federal tax owing |
$0 |
Example 2: Higher-Earning Student
| Item |
Amount |
| Co-op income |
$20,000 |
| Part-time job |
$5,000 |
| Taxable income |
$25,000 |
| Federal tax before credits |
~$3,750 |
| Basic personal amount credit |
$2,355 |
| Tuition credit ($7,000 × 15%) |
$1,050 |
| Federal tax owing |
~$345 |
RRSP Room for Students
| Rule |
Details |
| RRSP room earned |
18% of previous year earned income |
| Carries forward |
Accumulates if not used |
| Student strategy |
Build room now, contribute when income is higher |
Example
| Year |
Earned Income |
RRSP Room Added |
| Year 1 |
$15,000 |
$2,700 |
| Year 2 |
$18,000 |
$3,240 |
| Year 3 |
$20,000 |
$3,600 |
| Cumulative room |
— |
$9,540 |
TFSA for Students
| Feature |
Details |
| Age requirement |
18+ (19 in some provinces) |
| Contribution room |
TFSA room accumulates from age 18 |
| No income requirement |
Unlike RRSP |
| Strategy |
Prioritize TFSA over RRSP while in low tax bracket |
CPP for Working Students
Employees
| Rule |
Details |
| When CPP applies |
Earning over ~$3,500/year |
| Rate |
5.95% (2024), matched by employer |
| Exemption |
First $3,500 exempt |
| Student exception |
None — CPP required if working as employee |
Self-Employed Students
| Rule |
Details |
| Rate |
11.9% (employee + employer portions) |
| Minimum threshold |
$3,500 |
| Benefit |
Builds CPP retirement benefit |
Common Mistakes
| Mistake |
Impact |
| Not filing because “I don’t owe” |
Miss GST credit, tuition carry-forward |
| Not claiming tuition credits |
Lose valuable credit |
| Transferring too much tuition |
Should carry forward if you don’t need it |
| Forgetting scholarship slips |
May miss filing |
| Not reporting all income |
CRA matches with employers |
Key Deadlines
| Deadline |
Date |
| T4/T4A issued |
End of February |
| Tax return due |
April 30 |
| Tuition credit transfer deadline |
April 30 |
| RRSP contribution deadline |
First 60 days of year |
Software for Students
| Option |
Cost |
| Wealthsimple Tax |
Free |
| TurboTax Free |
Free (simple returns) |
| H&R Block Free |
Free (simple returns) |
| StudioTax |
Free |